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Bandhan Bank net up 67.8% to Rs 651 crore on doubling of fee income

The microlender-turned-commercial bank had reported a net profit of Rs 388 crore in Q4FY18.

By: ENS Economic Bureau | Mumbai | Updated: May 3, 2019 3:15:10 am
Bandhan Bank, Bandhan Bank revenue, Bandhan Bank quarterly report, Bandhan Bank NPAs, Bandhan Bank profit, banking news, indian express Total income rose by 54.2 per cent y-o-y to Rs 1,646 crore on account of a 45 per cent rise in its NII to Rs 3,048 crore and a 91 per cent rise in its non-interest income like fees and commission to Rs 388 crore.

Private sector lender Bandhan Bank on Thursday reported a 67.8 per cent growth in its net profit at Rs 651 crore for the March quarter because of higher net interest and non-interest income, coupled with an improved asset quality.

The microlender-turned-commercial bank had reported a net profit of Rs 388 crore in Q4FY18. Total income rose by 54.2 per cent y-o-y to Rs 1,646 crore on account of a 45 per cent rise in its NII to Rs 3,048 crore and a 91 per cent rise in its non-interest income like fees and commission to Rs 388 crore. NII is the difference between interest earned and interest paid by a bank. The lender’s pre-provisioning profit grew by 64 per cent to Rs 1,154 crore on the back of a growing total income. The net interest margin (NIM) rose by 137 basis points (bps) y-o-y to 10.69 per cent. However, provisions grew by 41.2 per cent to Rs 154 crore as the lender made 100 per cent provision to an exposure of Rs 385 crore to IL&FS. The bank, whose promoters were struggling to bring down the holding in the bank in accordance with the Reserve Bank of India norms, will go for an offer for sale to reduce the holding, managing director Chandra Shekhar Ghosh said.

He also said an acquisition, which can serve as an alternative to reduce promoter holding, is off the table for time being. However, he did not share a timeline by when he expects the sale process will be completed. —FE & PTI

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