Bandhan Bank’s branch at Prabhadevi, Mumbai. (Photographer: Anirudh Saligrama/BloombergQuint) 

Q4 Results: Bandhan Bank’s Profit Rises 68% Over Deposit, Loan Asset Growth

Bandhan Bank Ltd.’s profit for the March quarter rose 67.8 percent due to growth in loan assets and deposits across all regions, its Managing Director and Chief Executive Officer CS Ghosh said.

While the Kolkata-based lender’s deposits grew 27.6 percent to Rs 43,232 crore, loan assets rose 38.5 percent to Rs 44,776 crore for the full fiscal. Its current account savings account deposits increased 40.8 percent over last year.

“Though the financial industry has faced challenges in the last one year, our growth has been positive,” Ghosh said at a press conference today.

Bandhan Bank said its non-performing assets ratio fell sequentially from 0.7 percent to 0.58 percent.

We faced NPA issues in the last two years but now I have confidence that we will continue this performance in the future.
CS Ghosh, MD and CEO, Bandhan Bank

Q4 Earnings Highlights (YoY)

  • Profit after tax rose from Rs 388 crore to Rs 651 crore.
  • Net interest income jumped 45.6 percent to Rs 1,258 crore.
  • Operating profit up 63.92 percent to Rs 1,154 crore.
  • Provisions increase from Rs 109 crore to Rs 154 crore.
  • Net interest margin expands to 10.7 percent from 9.3 percent.

Merger With Gruh Finance

Bandhan Bank and Gruh Finance Ltd.’s impending merger awaits approval from the National Company Law Tribunal, shareholders and lenders, Ghosh said, adding that it has received speedy approvals from regulators otherwise.

The private lender expects the proportion of microfinance institutional loans to decline after the merger. Ghosh said that it aims to achieve a proportion mix of 75:25 between loans by micro and non-micro lenders.

Gruh Finance would become a vertical of Bandhan Bank after the merger, Ghosh said.

Watch the full interaction here:

Also read: BQEdge | What’s Ailing Bandhan Bank’s Stock?