Bandhan Bank Q1 net falls 32% on higher provisioning

In Q4FY21, gross slippages were astir Rs 3500 crore.

Private assemblage lender Bandhan Bank connected Friday reported a 32.14% year-on-year (y-o-y) autumn successful nett net to Rs 373.08 crore successful the archetypal 4th of the existent fiscal twelvemonth connected the backmost of further provisions connected non-performing assets (NPAs) and accelerated provisions connected modular assets for imaginable interaction of Covid-19.

During the archetypal 4th of FY22, the lender made further provisions connected NPA amounting to Rs 750.83 crore for imaginable interaction of Covid 19 connected definite indebtedness portfolios, portion holding accelerated provisions of Rs 322.66 crore connected modular assets arsenic connected June 30.   The Kolkata-based slope had posted a Rs 549.82-crore nett net successful the archetypal 4th of 2020-21, portion successful the 4th fourth of 2020-21 the nett net was Rs 103.03 crore.

The full proviso and contingencies during the 4th nether reappraisal roseate 61.93% YoY to Rs 1374 crore from Rs 849.06 crore successful the aforesaid 4th erstwhile fiscal year. Gross NPAs arsenic a percent of full loans accrued 137 ground points 4th connected 4th to 8.18% from 6.81% during the 4th fourth of the past fiscal. In Q1FY22, nett NPA ratio, however, fell 22 ground points QoQ to 3.29% from 3.51% successful Q4FY21.

Commenting connected the performance, Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank, said, “In spite of challenging situation owed to Covid 2nd wave, we person delivered the best-ever 4th successful presumption of operational performances. Collections proceed to amended with Covid restrictions getting relaxed.”

During Q1FY22, the bank’s indebtedness portfolio grew 8.1% YoY, portion its EEB (erstwhile micro-banking segment) portfolio grew 12% YoY. Total postulation ratio for the EEB portfolio during the June 4th stood astatine 98%. Net involvement income (NII) for the 4th grew 16.70% YoY to Rs 2,114.08 crore, against Rs 1,811.53 crore successful the corresponding 4th of the erstwhile year. Net involvement borderline (NIM) stood astatine 8.5%, up 35 bps from 8.15% for Q1FY21.

Ghosh said during Q1FY22, astir Rs 4,661 crore of loans were restructured, portion gross slippages stood astatine Rs 1,661 crore.

In Q4FY21, gross slippages were astir Rs 3500 crore.

“EEB is 60% of our concern and that is unsecured. And, concern was specified that with Covid successful the past 4th doorstep collections were not imaginable successful galore parts. So, slippages person been higher successful this business,” said Sunil Samdani, CFO, Bandhan Bank. In presumption of wide postulation efficiency, the slope said July was amended than June.

“Our maturation concern is intact,” Ghosh said, adding the slope was focussing connected translation and diversification of its equilibrium expanse for greater secure-unsecure loans balance.