Bandhan Bank Q4 net falls 80% on provisions for MFI loan write-offs

The Kolkata-based bank had posted Rs 517.28 crore net profit in the fourth quarter of FY20. The lender’s total provision and contingencies in Q4FY21 rose 92.7 per cent y-o-y to Rs 1,594.30 crore from Rs 827.36 crore in the same quarter previous fiscal.

During the period under review, gross NPAs as a percentage of total loans rose 569 basis points quarter-on-quarter (q-o-q) to 6.8 per cent from 1.11 per cent during the third quarter last fiscal.

Private sector lender Bandhan Bank on Saturday reported an 80 per cent year-on-year (y-o-y) fall in net profit for the quarter ending March to Rs 103.03 crore on the back of additional provisions on non-performing assets (NPAs).

The Kolkata-based bank had posted Rs 517.28 crore net profit in the fourth quarter of FY20. The lender’s total provision and contingencies in Q4FY21 rose 92.7 per cent y-o-y to Rs 1,594.30 crore from Rs 827.36 crore in the same quarter previous fiscal.

During the period under review, gross NPAs as a percentage of total loans rose 569 basis points quarter-on-quarter (q-o-q) to 6.8 per cent from 1.11 per cent during the third quarter last fiscal.

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The bank’s proforma gross NPA had stood at 7.12 per cent in Q3FY21.

During Q4FY21, net NPA ratio rose by 325 basis points q-o-q at 3.51 per cent. Chandra Shekhar Ghosh, MD and CEO, Bandhan Bank, said a very challenging year ended on a positive note with growth and collection coming back to normalcy. “With accelerated provisioning and write off, we are now well placed as we enter FY22,” he said.

During the fourth quarter, the bank wrote-off Rs 1,930 crore worth of loans, where Rs 1,876 crore was from microfinance institutions (MFIs). “Our bank did not restructure any loan in the microfinance segment, while Rs 617 crore of housing finance was restructured,” Ghosh said.