The Prabhadevi Branch of Bandhan Bank. (Photographer: Anirudh Saligrama/BloombergQuint)

Bandhan Bank Jumps To A Record After Q1 Profit Rises 47%

Bandhan Bank Ltd.’s shares rose to a record as its quarterly profit surged and asset quality remained stable.

The lender's net profit rose 47.5 percent year-on-year to Rs 481 crore in the quarter ended June, it said in an exchange filing. Net interest income, or the core income of the bank, rose 40 percent to Rs 1,037 crore.

Asset quality remained stable with the gross non performing assets ratio at 1.26 percent compared to 1.25 percent in the previous quarter. Net NPA ratio expanded to 0.64 percent from 0.58 percent.

The bank’s experience with retail lending has not led to any bad loans so far, said Chandra Shekhar Ghosh, managing director and chief executive officer of Bandhan Bank. “Whatever NPAs we have are only in micro-credit segment,” he told BloombergQuint.

The bank's capital adequacy ratio improved to 32.61 percent from 26.16 percent year-on-year.

Bandhan Bank stock jumped as much as 6.1 percent to hit an all-time high at Rs 597 after the earnings were announced. The lender’s shares have risen 55 percent since its listing in March compared with a 10.49 percent rise in the benchmark S&P BSE Sensex.