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Bandhan Bank reported a modest third quarter (Q3FY23) net profit of ₹290.6 crore, down 66% year on year, due to a fall in net interest income and greater provisioning. It was ₹859 crore the previous year.
Net interest income (NII) decreased 2% in the third quarter to ₹2,080.4 crore, compared to ₹2,124.7 crore in the same quarter previous year.
Non-interest income increased by 45% to ₹1,033.3 crore in the third quarter, up from ₹712 crore in the previous year’s equivalent quarter.
The lender’s provisions were ₹1,541 crore, up from ₹1,280 crore in the previous quarter and ₹806 crore year on year.
The bank’s net NPAs fell to 1.9% in the third quarter, down from 3.0% the previous year.
Gross NPAs were ₹6,964.8 crore (7.2%) as of 31 December 2022, compared to ₹6,853.9 crore (7.2%) as of 30 September 2022 and ₹9,441.6 crore (10.8%) as of 31 December 2021.
“In terms of asset quality and stress, we see the worst is behind us and expect overall business momentum to remain robust from Q4 FY23 onwards. The Bank’s diversification agenda is well on track and with the operating environment being favourable, the Bank is well poised for its next phase of growth, said Chandra Shekhar Ghosh, MD & CEO.
Bandhan Bank’s total deposits increased by 21% to ₹1,02,283.2 crore during the quarter under review, while total advances increased by 11.1% to ₹97,787.1 crore.
The bank’s PCR was 75.4% in the December quarter, up from 74.4% the previous year, while its capital adequacy ratio was 19.1%.
The number of banking locations in the third quarter was 5,723. The network now has 1,250 branches and 4,473 banking units, compared to 1,176 branches and 4,450 banking units on December 31, 2021.
The number of workers at the bank increased from 64,078 to 66,114 during the quarter under review.
Bandhan Bank shares finished 2.29% higher on the NSE on Friday, at ₹241.65.