Private sector lender Bandhan Bank on Friday reported a 2.5 times jump in its net profit at ₹732.72 crore for the third quarter this fiscal as provisions fell 55.63 per cent y-o-y during the period. The Kolkata-based bank had posted a net profit of ₹290.57 crore for the same quarter last fiscal.

Operating profit for the third quarter of FY24 declined by 13.88 per cent y-o-y to ₹1,655.30 crore, against ₹1,922.17 crore for the same period of FY23 due to over 47 per cent decrease in non-interest income. Non-interest income for the period under review fell to ₹545.16 crore from ₹1,033.30 crore for the same period last fiscal.

The bank’s net interest income (NII) for Q3FY24 rose 21.39 per cent y-o-y at ₹2,525.36 crore compared with ₹2,080.43 crore for Q3FY23. Net interest margin (NIM) stood at 7.2 per cent in the period under review, compared with 6.5 per cent in the corresponding period last fiscal.

“In the third quarter this fiscal, our bank’s overall advances grew 18.6 per cent year-on-year and 7.7 per cent quarter-on-quarter. The growth in the loan book reflects an uptick in demand across the asset vertical,” MD and CEO Chandra Shekhar Ghosh said during a media conference after declaring the results.

‘Boost in growth’

“The third quarter has always been a growth phase for the bank over the years. In the beginning of the quarter, the bank underwent a core banking system (CBS) migration. With the new system, we are confident of a further boost in the growth of business,” Ghosh said.

During the third quarter, the bank’s total deposits grew 15 per cent y-o-y. The current account and savings account (CASA) ratio was 36.1 per cent of the overall deposit book. “We would like to maintain our NIM at around 7-7.5 per cent for this fiscal,” Ghosh added.

During the quarter the provisions fell to ₹684 crore from ₹1,541.49 crore in the corresponding quarter of the last financial year.

Fresh slippages stood at ₹1,390 crore for Q3FY24 against ₹3,270 crore for Q3FY23. Gross NPA ratio was at 7.02 per cent compared with 7.15 per cent in the year-ago period.