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Bandhan Bank has reported 32%
dip in the net profit to Rs 373.08 crore for the quarter ended June 2021
(Q1FY2022). The sharp increase in provisions and asset quality pressure
continued to drag bottomline of the company in Q1FY2022. The company has also
witnessed sharp moderation in loan growth to 8% end June 2021. However, the
bank has posted healthy growth in net interest margin, while improving net
interest margin. The CASA deposits ratio of the bank has remained healthy at 42.9%.
Asset
quality stable: Bank has witnessed increase in Gross NPA
ratio, but reduced net NPA ratio with higher provisioning in Q1FY2022.
The Gross NPA ratio moved up
by 137 bps qoq and 675 bps yoy to 8.18% end June 2021.
Net NPA ratio declined 22 bps
qoq, while increased 281 bps yoy to 3.29% end June 2021.
The bank has restructured micro
loans amounting to Rs 457 crore and housing loans amounting to Rs 604 crore in
Q1FY2022.
The bank has made
accelerated NPA provisions of Rs 751 crore leading to increase in PCR to 62%
from 50% end March 2021.
In addition, the bank is
also carrying additional standard assets provision amounting to Rs 323 crore
and provision on restructured assets worth Rs 529 crore.
The Capital Adequacy Ratio
of the bank was strong at 24.8% compared with 23.5% a quarter ago and 26.5% a
year ago.
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Asset Quality
Indicators: Bandhan Bank
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Jun-21
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Mar-21
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Dec-20
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Sep-20
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Jun-20
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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6440.38
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5757.76
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859.22
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873.97
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1006.67
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12
|
540
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Net NPA (Rs Crore)
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2457.87
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2861.03
|
201.34
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262.55
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335.78
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-14
|
632
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% Gross NPA
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8.18
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6.81
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1.11
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1.18
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1.43
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137
|
675
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% Net NPA
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3.29
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3.51
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0.26
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0.36
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0.48
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-22
|
281
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% CRAR - Basel III
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24.81
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23.47
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26.17
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25.68
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26.45
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134
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-164
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% CRAR - Tier I Basel
III
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23.80
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22.50
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21.40
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22.20
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23.22
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130
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58
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business
Highlights
Business
growth eases: Business of the bank grew at slower pace of 17%
yoy to Rs 157700 crore at end June 2021. Deposits grew at strong bust moderated
pace of 28% to Rs 77340 crore, while the advances growth also decelerated to 8%
at Rs 80360 crore at end June 2021. The credit-deposit ratio eased to 103.9% at
end June 2021 from 111.6% a quarter ago and 122.6% a year ago.
CASA
ratio steady: CASA ratio of the bank increased to 42.9% at
end June 2021 compared with 37.1% at end June 2020. CASA deposits with the bank
increased 48% to Rs 33200 crore, driven by 53% growth in the saving account
deposits to Rs 29710 crore at end June 2021. Current deposit also surged 17% to
Rs 3490 crore at end June 2021.
Credit
growth moderates: The growth of the advances book was mainly
driven by micro loans rising 12% to Rs 53210 crore end June 2021 over June
2020. The non-micro loans rose 1% to Rs 27150 crore. The mix between micro :
non-micro loans stood at 87.2 : 12.8 end June 2021, compared with 86.7 : 13.3 end June 2020.
The active borrowers in the
micro-banking segment increased 4% to 11.6 million at end June 2021. Within the
non-micro banking segment, the retail loans increased 69% to Rs 1120 crore,
while small enterprise loans moved up 37% to Rs 4300 crore, and NBFC-others 39%
to Rs 1050 crore end June 2021 over June 2020. However, the NBFC-MFIs declined 51%
to Rs 1320 crore,
The micro loans
disbursements increased 92% to Rs 5980 crore, while non-micro loans
disbursement declined 26% to Rs 250 crore in Q1FY2022 over Q1FY2021.
Margins
improve: The bank has posted substantial improvement in net
interest margins to 8.5% in Q1FY2022 from 6.8% in the previous quarter and 8.2%
in the corresponding quarter last year.
The yield on loans have
improved 10 bps qoq to 13.7% , while cost of funds declined 70 bps qoq to 5.7% in
Q1FY2022. The bank has improved spreads by 70 bps qoq to 7.9% and NIMs by 35 bps
qoq to 8.5% in Q1FY2022.
Network
expansion: Bank has total branch network of 1152 branches and ATMs
network of 487 ATMs spread across 548 cities in 34 states at end June 2021 The
bank also has a network of 4422 Door Step Service Centers end June 2021.
The employee base of the
bank has moved up to 51054 end June 2021. The customer base of the bank has
increased to 23.5 million end June 2021 from 23 million a quarter ago and 20.31
million a year ago.
Book
Value per share stood at Rs 110.4 per share at end June 2021. The
adjusted book value (net of NNPA and 10% of restructured loans) was Rs 92.3 per
share at end June 2021.
Quarterly
Performance:
NII
up, as NIM improves: Interest income of the bank increased 13% to
Rs 3410.01 crore in Q1FY2022, while interest expended rose 7% to Rs 1295.94 crore.
NII rose improved 17% to Rs 2114.07 crore in the quarter ended June 2021, as
NIM of the bank improved to 8.50% in Q1FY2022 from 6.80% in the previous
quarter and 8.15% in the corresponding quarter last year.
Non-interest
income surges: Other income of the bank increased 38% to Rs
533.36 crore in the quarter ended June 2021.
The net total income
increased 20% to Rs 2647.43 crore in the quarter ended June 2021.
Expense
ratio up: Operating expenses increased 26% to Rs 776.35 crore, on
the back of 28% surge in employee expenses to Rs 499.79 crore, while the other
operating expenses rose 23% to Rs 276.56 crore. The expense ratio increased to 29.3%
in the quarter under review from 27.9% in Q1FY2021.
Operating profit improved 18%
to Rs 1871.09 crore in Q1FY2022.
Provisions
surges: The provisions and contingencies surged 62% to Rs 1374.88
crore.
With the overall surge in
provisions, the profit before tax declined 32% to Rs 496.21 crore in the
quarter ended June 2021.
Tax
rate flat: The effective tax rate for the bank was flat at 25% in
Q1FY2022 from 25.21% in Q1FY2021. The net profit declined 32% to Rs 373.08 crore
in the quarter ended June 2021.
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Bandhan Bank: Results
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Particulars
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2106 (3)
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2006 (3)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Interest Earned
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3410.01
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3018.09
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13
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12524.20
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10885.50
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15
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Interest Expended
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1295.94
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1206.56
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7
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4960.86
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4561.58
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9
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Net Interest Income
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2114.07
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1811.53
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17
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7563.34
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6323.92
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20
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Other Income
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533.36
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386.76
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38
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2109.06
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1549.20
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36
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Net Total Income
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2647.43
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2198.29
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20
|
9672.40
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7873.12
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23
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Operating Expenses
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776.35
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614.10
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26
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2817.16
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2426.54
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16
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Operating Profits
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1871.09
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1584.18
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18
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6855.25
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5446.58
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26
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Provisions &
Contingencies
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1374.88
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849.06
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62
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3906.60
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1393.15
|
180
|
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Profit Before Tax
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496.21
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735.12
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-32
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2948.65
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4053.42
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-27
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Provisions for Tax
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123.13
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185.30
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-34
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743.20
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1029.68
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-28
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Net Profit
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373.08
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549.82
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-32
|
2205.46
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3023.74
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-27
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EPS*(Rs)
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9.3
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13.7
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13.7
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18.8
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* Annualized on current
equity of Rs 1610.67 crore. Face Value: Rs 10, Figures in Rs crore,
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Source: Capitaline
Corporate Database
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