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Private sector lender Bandhan Bank, on Wednesday, posted a 47.4 per cent increase in its net profit for the second quarter of the fiscal, led by healthy growth in net interest income and stable asset quality. It also re-affirmed its commitment to follow the central bank’s norms on diluting promoter shareholding.
The bank’s net profit rose to ₹488 crore for the quarter ended September 30, 2018, against ₹331 crore in the same period a year ago.
Its net interest income jumped 55.6 per cent at ₹1,078 crore in the second quarter of 2018-19 against ₹693 crore a year ago.
Non-interest income, or other income, grew 3.1 per cent at ₹230 crore for the quarter under review, compared to ₹223 crore in the same period a year ago.
The net interest margin for the second quarter of the fiscal stood at 10.3 per cent, compared to 9.3 per cent in the same quarter a year ago.
Gross, net NPAs
The Kolkata-based lender also reported gross non-performing assets of 1.29 per cent of gross advances in the second quarter of this fiscal, compared to gross NPAs of 1.43 per cent in the September 2017 quarter.
Net NPAs of the bank stood at 0.69 per cent in the September quarter of this fiscal, against 0.76 per cent in the corresponding period a year ago.
“The second quarter of the fiscal 2018-19 continues to be promising with advances growing by 51 per cent (year-on-year) and CASA ratio of 36.9 per cent. We expect the momentum to continue in the second half of the fiscal,” said Chandra Shekhar Ghosh, Managing Director and CEO, Bandhan Bank.
Micro credit loans stood at 87 per cent of its total loan book at the end of the second quarter with the balance from non-micro credit book.
Ghosh said the bank will also increase lending to the micro, small and medium enterprises and retail segments.
The lender has also added 7.6 lakh new customers during the quarter, and its total customer base is now 1.44 crore.
Ghosh also said the bank is committed to comply with the RBI directive to dilute its promoter shareholding to 40 per cent, and is working on a strategic plan.
Sunil Samdani, Chief Financial Officer, Bandhan Bank, said the lender is looking at three options, including offer for sale, merger and acquisition, and primary fund raising to meet the directive.
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