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Bandhan Bank has reported 36% rise in the net profit to Rs 858.97 crore
for the quarter ended December 2021 (Q3FY2022). The bank has exhibited strong
rebound in profitability after posting hefty net loss of Rs 3008.60 crore in
the previous quarter ended September 2021.
The loan growth has improved to 10%, while
deposits book has jumped 19%. The bank has also improved CASA deposits ratio to
45.6% yoy from 42.9%. The NIM of the bank has improved to 7.8% in Q3FY2022.
Asset quality stable: Bank has witnessed marginal decline in Gross NPA ratio and Net NPA
ratio in Q3FY2022.
The Gross NPA ratio eased by 1 bps qoq
and jumped 970 bps yoy to 10.81% end December 2021.
Net NPA ratio eased by 3 bps qoq, while
increased 275 bps yoy to 3.01% end December 2021.
The Capital Adequacy Ratio of the bank
was strong at 20.0% compared with 20.4% a quarter ago and 26.2% a year ago.
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Asset Quality Indicators: Bandhan Bank
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|
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Dec-21
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Sep-21
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Jun-21
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Mar-21
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Dec-20
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Variation
|
|
QoQ
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YTD
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YoY
|
|
Gross NPA (Rs Crore)
|
9441.57
|
8763.60
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6440.38
|
5757.76
|
859.22
|
8
|
64
|
999
|
|
Net NPA (Rs Crore)
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2413.13
|
2265.81
|
2457.87
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2861.03
|
201.34
|
7
|
-16
|
1099
|
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% Gross NPA
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10.81
|
10.82
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8.18
|
6.81
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1.11
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-1
|
400
|
970
|
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% Net NPA
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3.01
|
3.04
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3.29
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3.51
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0.26
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-3
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-50
|
275
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% CRAR - Basel III
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20.00
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20.44
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24.81
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23.47
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26.17
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-44
|
-347
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-617
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% CRAR - Tier I Basel III
|
19.00
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19.48
|
23.80
|
22.50
|
21.40
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-48
|
-350
|
-240
|
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
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Business Highlights
Business growth stable: Business of the bank grew 14% yoy to Rs 172500 crore at end
December 2021. Deposits grew at higher pace of 19% to Rs 84500 crore, while the
advances moved up 10% to Rs 88000 crore at end December 2021.
The credit-deposit ratio moved up to 104.1%
at end December 2021 from 99.7% a quarter ago and eased from 112.7% a year ago.
CASA ratio improves: CASA ratio of the bank increased to 45.6% at end December 2021 compared
with 42.9% at end December 2020. CASA deposits with the bank increased 26% to
Rs 38530 crore, driven by 28% growth in the saving account deposits to Rs 34620
crore at end December 2021. Current deposit also surged 12% to Rs 3910 crore at
end December 2021.
Strong credit growth: The growth of the advances book was mainly driven by micro loans
rising 9% to Rs 57560 crore end December 2021 over December 2020. The non-micro
loans also surged 12% to Rs 30440 crore. The mix between micro : non-micro loans
stood at 85.8 : 14.2 end December 2021, compared with 87.7 : 12.3 end December 2020.
The active borrowers in the
micro-banking segment increased 5% to 11.9 million at end December 2021.
Within the non-micro banking segment,
the retail loans increased 43% to Rs 1130 crore, while small enterprise loans
moved up 35% to Rs 5140 crore, and NBFC-others 77% to Rs 1720 crore end
December 2021 over December 2020. However, NBFC-MFIs declined 21% to Rs 1510 crore,
The micro loans disbursements increased
22% to Rs 20280 crore in Q3FY2022 over Q3FY2021.
Margins improve: The bank has posted substantial improvement in net interest
margins to 7.8% in Q3FY2022 from 7.6% in the previous quarter and while
declined from 8.3% in the corresponding quarter last year.
The yield on loans has declined 70 bps
qoq to 12.6%, while cost of funds declined 80 bps qoq to 5.2% in Q3FY2022. The
bank has improved spreads by 10 bps qoq to 7.4% and NIMs by 20 bps qoq to 7.8% in
Q3FY2022.
Bank has total branch network of 1176 branches
and ATMs network of 489 ATMs spread across 548 cities in 34 states at end
December 2021.
The bank also has a network of 4450 Door
Step Service Centers end December 2021. The employee base of the bank has moved
up to 55341 end December 2021.
The customer base of the bank has
increased to 25.13 million end December 2021 from 24.3 million a quarter ago
and 22.48 million a year ago.
Book Value per share stood at Rs 96.1 per share at end December 2021. The
adjusted book value (net of NNPA) was Rs 77.5 per share at end December 2021.
Quarterly Performance:
NII up, as NIM improves: Interest income of the bank rose 3% to Rs 3408.66 crore in
Q3FY2022, while interest expended moved up 4% to Rs 1283.96 crore. NII rose
improved 3% to Rs 2124.70 crore in the quarter ended December 2021, as NIM of
the bank improved to 7.80% in Q3FY2022 from 7.60% in the previous quarter and
while eased from 8.30% in the corresponding quarter last year.
Non-interest income surges: Other income of the bank increased 27% to Rs 712.29 crore in the
quarter ended December 2021.
The net total income increased 8% to Rs
2836.99 crore in the quarter ended December 2021.
Expense ratio up: Operating expenses increased 25% to Rs 886.84 crore, on the back
of 19% surge in employee expenses to Rs 519.03 crore, while the other operating
expenses rose 33% to Rs 367.81 crore.
The expense ratio increased to 31.3% in
the quarter under review from 27.0% in Q3FY2021.
Operating profit rose 1% to Rs 1950.15 crore
in Q3FY2022.
Provisions declines: The provisions and contingencies declined 25% to Rs 805.71 crore
in Q3FY2022.
With the overall decline in provisions,
the profit before tax increased 35% to Rs 1144.44 crore in the quarter ended
December 2021.
Tax rate steady: The effective tax rate for the bank was flat at 25% in Q3FY2022
from 25.17% in Q3FY2021, allowing the net profit to rise 36% to Rs 858.97 crore
in the quarter ended December 2021.
Financial Performance 9MFY2022:
For the nine-months ended December 2021
(9MFY2022), the bank has recorded net loss of Rs 1776.55 crore. The net
interest income improved 6% to Rs 6174.19 crore, while non-interest income also
increased 41% to Rs 1858.42 crore in 9MFY2022. The expense ratio increased to 31.6%
in 9MFY2022 compared to 28.1% in 9MFY2021. The operating expenses increased 27%
to Rs 2540.59 crore, while provision and contingencies zoomed 241% to Rs 7880.06
crore. The pre tax loss came in at Rs 2388.04 crore in 9MFY2022. The bank has
written back tax provisions of Rs 611.50 crore, allowing to reduce net loss to
Rs 1776.55 crore in 9MFY2022.
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Bandhan Bank: Results
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Particulars
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2112 (3)
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2012 (3)
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Var %
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2112 (9)
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2012 (9)
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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
|
3408.66
|
3307.84
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3
|
9999.56
|
9523.55
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5
|
12524.20
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10885.50
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15
|
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Interest Expended
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1283.96
|
1236.10
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4
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3825.37
|
3717.20
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3
|
4960.86
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4561.58
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9
|
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Net Interest Income
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2124.70
|
2071.74
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3
|
6174.19
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5806.35
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6
|
7563.34
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6323.92
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20
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Other Income
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712.29
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562.33
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27
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1858.42
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1321.81
|
41
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1991.02
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1549.20
|
29
|
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Net Total Income
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2836.99
|
2634.07
|
8
|
8032.61
|
7128.16
|
13
|
9554.36
|
7873.12
|
21
|
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Operating Expenses
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886.84
|
710.88
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25
|
2540.59
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2002.30
|
27
|
2816.88
|
2426.54
|
16
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Operating Profits
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1950.15
|
1923.19
|
1
|
5492.02
|
5125.86
|
7
|
6737.49
|
5446.58
|
24
|
|
Provisions & Contingencies
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805.71
|
1077.83
|
-25
|
7880.06
|
2312.38
|
241
|
3788.83
|
1393.15
|
172
|
|
Profit Before Tax
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1144.44
|
845.36
|
35
|
-2388.04
|
2813.48
|
-185
|
2948.66
|
4053.42
|
-27
|
|
Provisions for Tax
|
285.47
|
212.76
|
34
|
-611.50
|
711.06
|
-186
|
743.20
|
1029.68
|
-28
|
|
Net Profit
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858.97
|
632.59
|
36
|
-1776.55
|
2102.42
|
-185
|
2205.47
|
3023.74
|
-27
|
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EPS*(Rs)
|
21.3
|
15.7
|
|
-14.7
|
17.4
|
|
13.7
|
18.8
|
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* Annualized on current equity of Rs 1610.72 crore. Face Value:
Rs 10, Figures in Rs crore,
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Source: Capitaline Corporate Database
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