Bandhan Bank reports Q3 net profit at Rs 731 cr
Mumbai: Private sector lender Bandhan Bank on Tuesday reported a huge jump in net profit, including that of merged Gruh Finance, to Rs 731 crore for December 2019 quarter.
Bandhan Bank had reported a post tax net of Rs 331.26 crore in the year ago period.
However, the results are not comparable as the reported quarter includes the performance of gruh Finance, with which it merged in 2019.
The microlender-turned-universal bank had to set aside Rs 200 crore as loan loss provisions after evaluating risks for its portfolio from in the restive North Eastern India.
Over a tenth of the Kolkata-headquartered bank's overall book come from Assam, which has been witnessing a spate of protests by citizens over the passage of the amendments to Citizenship Act by both the Houses of Parliament. The bank's chief executive and managing director C S Ghosh hinted that this is a temporary phenomenon, which may last for up to two months, but explained that it has decided to be cautious by setting aside the money.
The bank's core net interest income grew 37.10 per cent to Rs 1,541 crore on a 88 per cent jump in loan portfolio and a blended net interest margin of 7.91 per cent. The non-interest income grew 52.99 per cent to Rs 358 crore.
Share of the low cost current and savings account deposits has now gone up to 34 per cent as against 32.90 per cent at the end of the preceding quarter.
The bank's gross non performing assets ratio stood at 1.93 per cent as against 2.41 per cent in the year-ago period.
The overall provisions stood at Rs 294 crore compared to Rs 145 crore in the year-ago period.
Meanwhile, its executive director Sudhir Choksey said housing loan growth has become slow and it may take a few more quarters to recover.