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Private sector lender Bandhan Bank’s net profit more than doubled to ₹731 crore, a 120.85 per cent jump in the October to December 2019 quarter.
It had reported a net profit of ₹331 crore in the corresponding period a year ago.
The bank, however, said that with the amalgamation with Gruh Finance, the figures for the current quarter are not comparable with the corresponding figures of the previous year period. The merger came into effect on October 17, 2019.
Total income
Bandhan Bank’s total income jumped by 63 per cent to ₹3,075.34 crore for the third quarter of the fiscal against ₹1,883.65 crore in the same period last fiscal. Net interest income for the quarter rose by 37.1 per cent to ₹1,541 crore against ₹1,124 crore in the corresponding quarter of the previous year. Net interest margin for the quarter ending December 31, 2019, stood at 7.9 per cent against 10.5 per cent in the corresponding quarter of the previous year.
Non-interest income grew by nearly 53 per cent to ₹358 crore for the quarter ended December 31, 2019. Gross non-performing assets (NPAs) declined to 1.93 per cent of the gross advances during the quarter against 2.41 per cent at the end of the third quarter of the previous fiscal.
However, net NPAs of the bank rose slightly to 0.81 per cent in the quarter from 0.70 per cent of the net advances.
Provisions stood at ₹294.87 crore at the end of the third quarter when compared to ₹377.64 crore a year ago.
Additional provisions
Chandra Shekhar Ghosh, Managing Director and CEO, Bandhan Bank, said the bank has made additional provisioning of ₹200 crore on standard advances in the microfinance portfolio after evaluating the risk observed in certain areas of a north-eastern State.
After the completion of the merger with Gruh, the promoter stake holding in the bank is now down to 61 per cent.
Ghosh said the bank is looking at other options to further bring down the promoter stake to the mandated 40 per cent, but did not share a timeline for it.
The bank’s scrip closed at a gain of 1.03 per cent at ₹518.95 apiece on the BSE on Tuesday.
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