Bandhan Bank Q4 Review - Elevated Provisions, Reversals Sharply Dent Earnings: Motilal Oswal
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Motilal Oswal Report
Bandhan Bank Ltd. reported a weak quarter, with net earnings sharply trailing estimates, affected by higher interest reversals of approximately Rs 5.4 billion.
Thus, net interest margins declined 150 basis point QoQ, while elevated provisions of Rs 15.9 billion further impacted earnings.
Total Covid-19 led provisions for FY21 comprise Rs 19.3 billion toward write-offs and another ~ Rs 29 billion toward loan loss provisions.
On the business front, assets under management grew 8% QoQ, led by strong disbursements in the micro finance institution portfolio.
Liability traction was robust at ~37% YoY, with the current account and savings account ratio improving 50 basis point QoQ.
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