Bandhan Bank on Friday reported 66.2 percent drop in net profit at Rs 290.6 crore for the October-December quarter against Rs 859 crore in the corresponding period a year ago amid a sharp jump in provisions and total cost. The net interest income (NII) dropped by 2.1 percent to Rs 2,080.4 crore. In third quarter of FY22, the same was reported at Rs 2,124 crore.

The numbers are below Street estimates too. A CNBC-TV18 poll had predicted a profit of Rs 327.5 crore for the quarter under review.

CNBC-TV18 poll had predicted NII to come at Rs 2,250.7 crore.

The provision coverage ratio, meanwhile, was reported at 75.4 percent versus 75.5 percent quarter-on-quarter. Provisions of the bank came in at Rs 1,541 crore versus Rs 1,280 crore quarter-on-quarter versus Rs 806 crore year-on-year.

Total expenditure rose 34.65 percent from the year-ago period to Rs 2,918.77 crore. The lender's non-performing assets, however, improved. Gross non-performing assets (GNPAs) fell 26.23 percent to Rs 6,964.76 crore against Rs 9,441.57 crore logged in the same quarter of the previous year.

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"In terms of asset quality and stress, we see the worst is behind us and expect overall business momentum to remain robust from Q4 FY23 onwards. The Bank’s diversification agenda is well on track and with the operating environment being favourable, the Bank is well poised for its next phase of growth", said Chandra Shekhar Ghosh, MD and CEO.

The gross NPAs of the bank stood at 7.15 percent compared to 7.19 percent logged in the previous quarter and 10.81 percent registered in the year-ago period. Net NPAs were flat at 1.86 percent during the quarter under review on a sequential basis.

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