Bandhan Bank Tuesday reported a net profit of Rs 731 crore for the quarter ended December 31, 2019, up 121 per cent from the year-ago period
The jump comes on the back of a 62 per cent year-on-year (y-o-y) rise in total income to Rs 3,075 crore as the benefits of the bank’s acquisition of Gruh Finance came into play. The lender also benefited from a 61.5 per cent drop in provisions to Rs 295 crore.
The bank’s net interest income rose 36 per cent y-o-y to Rs 1,541 crore. Net interest margin fell 29 bps to 7.91 per cent from 10.45 per cent at the end of June as the presence of secured and low-margin housing loans in the book played out. The bank said it has made additional provisions of Rs 200 crore on standard advances in its microfinance portfolio after evaluating risks observed in certain areas of a Northeastern state. —FE