Private-sector lender Bandhan Bank on Tuesday reported a net profit of Rs 488 crore in the quarter ended September, up 47 per cent from the corresponding figure in the same quarter last year, on the back of a 55.6 per cent year-on-year (y-o-y) rise in net interest income (NII) to Rs 1,078 crore.
NII is the difference between interest earned and interest paid by the bank. Net interest margin (NIM) also rose to 10.3 per cent from 9.6 per cent at the end of June. The bank’s provisions rose 43 per cent y-o-y to Rs 124 crore.
Asset quality at the bank deteriorated marginally from the previous quarter, with the gross non-performing asset (NPA) ratio rising to 1.29 per cent from 1.26 per cent and the net NPA ratio climbing 5 basis points (bps) to 0.69 per cent.
Total advances as on September 30 stood at Rs 33,373 crore, up 51 per cent from the previous year, while total deposits rose 29.5 per cent y-o-y to Rs 32,959 crore. The current accounts savings accounts (CASA) ratio improved to 36.9 per cent from 28.2 per cent at the end of September 2017.
Retail deposits accounted for 81.6 per cent of all deposits. CASA grew 69.8 per cent y-o-y to Rs 12,176 crore at the end of September. Microfinance loans made up for 87 per cent of Bandhan Bank’s loan book, while the rest of it was comprised of small entrepreneur loans (SELs), ranging between Rs 1 lakh and Rs 10 lakh each, and retail loans. The bank added 7.6 lakh customers during the quarter, at the end of which its total customer base stood at 144 lakh. —FE
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