Bandhan Bank has reported
58% dip in net profit at Rs 808.29 crore for the quarter ended March 2023
(Q4FY2023). The bank has posted 3% decline in net interest income (NII), as the
Net Interest Margin (NIM) of the bank fell to 7.30% in Q4FY2023 compared to 8.70%
in the corresponding quarter of previous year.
On business front, the bank as has
posted 11% growth in business with strong 10% surge in loan book. The asset
quality of the bank was stable in Q4FY2023. Bank has reduced the credit to
deposit ratio to 101.0% at end March 2023 from 103.1% at end March 2022. CASA
ratio of the bank has declined to 39.3% at end March 2023 from 41.6% at end
March 2022.
Asset quality improves: The bank has improved asset quality in
Q4FY2023.
Gross NPAs declined
to Rs 5299 crore (4.87%) end March 2023 against Rs 6380 crore (6.46%) end March
2022.
Net NPAs fell to Rs
1228 crore (1.17%) end March 2023 against Rs 1564 crore (1.66%) end March 2022.
Provision coverage ratio was steady at 76.80%
at end March 2023 compared to 75.40% a quarter ago and 75.50% a year ago.
The capital adequacy ratio of the bank
stood at 19.8% with Tier I ratio at 18.7% at end March 2023.
Asset Quality
Indicators: Bandhan Bank
|
|
Mar-23
|
Dec-22
|
Sep-22
|
Jun-22
|
Mar-22
|
Variation
|
QoQ
|
YoY
|
Gross NPA (Rs Crore)
|
5298.62
|
6964.76
|
6853.85
|
6967.55
|
6380.00
|
-24
|
-17
|
Net NPA (Rs Crore)
|
1228.27
|
1711.30
|
1678.16
|
1749.07
|
1564.23
|
-28
|
-21
|
% Gross NPA
|
4.87
|
7.15
|
7.19
|
7.25
|
6.46
|
-228
|
-159
|
% Net NPA
|
1.17
|
1.86
|
1.86
|
1.92
|
1.66
|
-69
|
-49
|
% PCR
|
76.80
|
75.40
|
75.50
|
74.90
|
75.50
|
140
|
130
|
% CRAR - Basel III
|
19.76
|
19.10
|
19.37
|
19.44
|
20.10
|
66
|
-34
|
% CRAR - Tier I - Basel III
|
18.70
|
18.10
|
18.40
|
18.30
|
18.90
|
60
|
-20
|
Variation in basis points
for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Double digit business growth: The business of the bank has increased 11%
YoY to Rs 217189 crore end March 2023, driven by 10% rise in advances to Rs 109120
crore. Deposits increased 12% to Rs 108069 crore at end March 2023.
CASA ratio improves on sequential basis:
The CASA deposits of the bank rose 6% YoY
to Rs 42460 crore at end March 2023. The CASA ratio declined to 39.3% at end
March 2023 compared to 41.6% at end March 2022, while improved from 36.4% a
quarter ago.
Strong loan growth: Advances growth was driven by retail
loans rising 233% YoY to Rs 5520 crore at end March 2023, while mortgage loan increased
13% to Rs 26580 crore at end March 2023. The commercial credit has jumped 72% to
Rs 20200 crore end March 2023. However, the microfinance credit has declined 9%
to Rs 56820 crore end March 2023. The share of non-microfinance loan has continued
to increase to 47.9% end March 2023 from 46.0% a quarter ago and 37.2% a year ago.
Investment book of the bank increased 11% YoY to Rs 32366 crore at end March
2023.
Margins improve on sequential basis: The bank has showed 70 bps YoY rise in
cost of deposits to 5.80%, while yield on advances declined 60 bps YoY to 12.70%
in Q4FY2023. Thus, the NIM has dipped 140 bps YoY to 7.30%.
Branch expansion: The bank has added 161 branches and 26 ATMs in Q4FY2023, taking
overall tally to 1411 branches and 438 ATM`s end March 2023. Banking
outlets stood at nearly 6000 the network consists of 1411 branches 4588 banking
units. Total number of ATMs stood at 438 end March 2023 against 471 end March 2022.
During the year the number of employees of the bank has gone up from 60211 to
69702.
Book value of the bank stood at Rs 121.6 per share
at end March 2023, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 112.7 per share at end March 2023.
Quarterly Performance
NII declines on lower NIMs: Bank has recorded 10% increase in the
interest earned at Rs 4268.25 crore, while interest expenses jumped 35% to Rs 1796.48
crore in Q4FY2023. NII declined 3% to Rs 2471.77 crore in the quarter ended
March 2023.
Non-interest income declines: The overall non-interest income dipped
35% to Rs 629.14 crore in the quarter ended March 2023.
Expenses ratio jumps: The operating expenses of the bank
increased 32% to Rs 1305.26 crore, as other expenses moved up 31% to Rs 577.84 crore,
while employee expenses galloped 32% to Rs 727.42 crore in Q4FY2023. Cost to
income ratio increased to 42.1% in Q4FY2023 compared with 28.2% in Q4FY2022, causing
29% dip in the Operating Profit to Rs 1795.65 crore.
Provisions and contingencies surges: The bank has showed 15467% surge in
provisions to Rs 734.77 crore.
Effective tax rate declined to
23.8% in Q4FY2023 from 24.4% in
Q4FY2022. Net Profit dipped 58% YoY to Rs 808.29 crore during quarter ended
March 2023.
Speaking on the
results, Chandra Shekhar Ghosh, MD & CEO, said, “The Bank registered good
growth in the fourth quarter with EEB business coming back to normalcy. We are
building new capabilities to unlock greater business impact. Our new business
streams such as Commercial Vehicle Lending, Loans against Property for
Business, Government Business Operations, among others, will add to the top
line as well as the bottom line over the next few quarters. We have been
fortunate to earn the trust of more than 3 crore Indians and we will endeavor
to continue to be their trusted partner in their journey to achieve their
dreams.”
Financial Performance FY2023:
Bank has posted 1645% increase in net
profit to Rs 2194.63 crore in the year ended March 2023 (FY2023). The net
interest income increased 6% to Rs 9259.62 crore, while non-interest income declined
13% to Rs 2468.55 crore. Net total income rose 2% to Rs 11728.17 crore in
FY2023. The operating expenses increased 32% to Rs 4636.82 crore, while
provision and contingencies dipped 47% to Rs 4198.37 crore, allowing profit
before tax to increase 2149% to Rs 2892.98 crore in FY2023. The cost-to-income
ratio jumped to 39.5% in FY2023 compared to 30.5% in FY2022. An effective tax
rate surged to 24.1% in FY2023 compared to 2.2% in FY2022. The net profit has
increased 1645% to Rs 2194.63 crore in FY2023.
Bandhan Bank: Results
|
Particulars
|
2303 (3)
|
2203 (3)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
Interest Earned
|
4268.25
|
3871.91
|
10
|
15904.70
|
13871.57
|
15
|
Interest Expended
|
1796.48
|
1331.73
|
35
|
6645.08
|
5157.10
|
29
|
Net Interest Income
|
2471.77
|
2540.18
|
-3
|
9259.62
|
8714.47
|
6
|
Other Income
|
629.14
|
972.11
|
-35
|
2468.55
|
2822.50
|
-13
|
Net Total Income
|
3100.91
|
3512.29
|
-12
|
11728.17
|
11536.97
|
2
|
Operating Expenses
|
1305.26
|
990.91
|
32
|
4636.82
|
3523.56
|
32
|
Operating Profits
|
1795.65
|
2521.38
|
-29
|
7091.35
|
8013.41
|
-12
|
Provisions & Contingencies
|
734.77
|
4.72
|
15467
|
4198.37
|
7884.78
|
-47
|
Profit Before Tax
|
1060.88
|
2516.66
|
-58
|
2892.98
|
128.63
|
2149
|
Provision for tax
|
252.59
|
614.33
|
-59
|
698.35
|
2.83
|
24577
|
PAT
|
808.29
|
1902.33
|
-58
|
2194.63
|
125.80
|
1645
|
EPS*(Rs)
|
20.1
|
47.2
|
|
13.6
|
0.8
|
|
Adj BV (Rs)
|
112.7
|
94.6
|
|
112.7
|
94.6
|
|
* Annualized on current equity
of Rs 1610.84 crore. Face Value: Rs 10, Figures in Rs crore
|
Source: Capitaline Corporate
Database
|
|