Bandhan Bank announced a decline in its profit for the June quarter, with a year-on-year (YoY) drop of 18.67% to Rs 721 crore, compared to Rs 887 crore in the same period last year. On a sequential basis, the bank witnessed a 10.77% decrease from Rs 808 crore in the March quarter.
However, the bank’s net interest income (NII) witnessed a positive trend, increasing by 11.53% YoY to Rs 4,523 crore, up from Rs 4,055 crore in the corresponding quarter of the previous year. Additionally, the bank’s non-interest income also showed growth, rising by 16.78% to Rs 385 crore from Rs 330 crore.
Bandhan Bank highlighted that its commercial banking book experienced robust growth, with a remarkable 78% YoY expansion. Furthermore, its retail loan books, excluding housing finance, recorded an impressive growth of 86.5%. The housing finance book also exhibited growth, albeit at a relatively lower rate of 9.5%, according to the bank’s statement.
In terms of overall advances, Bandhan Bank reported a total of Rs 4,820 crore in the June quarter, compared to Rs 4,070 crore in the previous quarter and Rs 5,220 crore in the same quarter of the previous year.
The bank’s asset quality demonstrated signs of improvement, with gross non-performing assets (NPAs) as a percentage of total advances standing at 6.8% in the June quarter, compared to 7.3% in the same period last year. However, the gross NPA percentage showed a slight deterioration from the 4.9% level observed in the March quarter.
Bandhan Bank’s performance in the June quarter reflects the ongoing challenges and uncertainties prevailing in the banking sector, primarily due to the impact of the COVID-19 pandemic. The bank has been focused on managing its loan portfolio and enhancing its asset quality to navigate through these challenging times.
Bandhan Bank is known for its focus on microfinance and lending to small businesses, as well as its commitment to financial inclusion. The bank’s results in the first quarter demonstrate its resilience and ability to adapt to changing market conditions.
As the economy gradually recovers and business activities pick up pace, Bandhan Bank will continue to monitor and manage its loan portfolio, aiming to strike a balance between growth and risk management. The bank remains committed to delivering value to its stakeholders and supporting the financial aspirations of its customers.
The future outlook for Bandhan Bank will depend on various factors, including the overall economic recovery, regulatory developments, and the bank’s ability to maintain a healthy asset quality while sustaining growth. As the bank navigates through these challenges, investors and stakeholders will closely watch its performance and strategic initiatives in the coming quarters.