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Bandhan Bank has reported robust 1746% jump in
the net profit to Rs 1902.34 crore for the quarter ended March 2022 (Q4FY2022),
with the sharp decline in provisions. The bank has also recroded strong growth
in net interest income as well as non-interest income in Q4FY2022. The net
interest margin of the bank has jumped 8.7% in Q4FY2022 from 7.8% a quarter ago
and 6.8% a year ago.
Loan portfolio (on
book + off book + TLTRO + PTC) grew 14.1%, while deposits grew 23.5% end March
2022. CASA grew 18.5% with CASA ratio at 41.6% against 43.4% last year. The
bank has exhibited substantial improvement in the asset quality with the
reduction in asset quality.
Asset
quality improves: Bank has witnessed decline
in Gross NPA ratio and Net NPA ratio in Q4FY2022.
GNPA declined to 6.46% end March 2022 against 10.81% end December
2021. Net NPAs also dipped to 1.66% against 3.01% end December 2021.
There is no restructuring done during the quarter
Despite technical write off of Rs 2030 crore during the
quarter, PCR improved from 74.4% end December 2021 to 75.5% end March 2022
Capital Adequacy Ratio (CRAR) at 20.1% with Tier I at
18.9%.
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Asset Quality
Indicators: Bandhan Bank
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Mar-22
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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6380.00
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9441.57
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8763.60
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6440.38
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5757.76
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-32
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11
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Net NPA (Rs Crore)
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1564.23
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2413.13
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2265.81
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2457.87
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2861.03
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-35
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-45
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% Gross NPA
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6.46
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10.81
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10.82
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8.18
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6.81
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-435
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-35
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% Net NPA
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1.66
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3.01
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3.04
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3.29
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3.51
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-135
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-185
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% CRAR - Basel III
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20.10
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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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10
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-337
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% CRAR - Tier I Basel
III
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18.90
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19.00
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19.48
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23.80
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22.50
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-10
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-360
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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
Total Advances (on book + off book + TLTRO + PTC) grew by
14.1% to Rs 99,338.1 crore as on March 31, 2022 against Rs 87,042.9 crore as on
March 31, 2021.
Total Deposits increased by 23.5% to Rs 96,330.6 crore as
on March 31, 2022 as compared to Rs 77,972.2 crore as on March 31, 2021.
Net Interest Margin (annualised) for the quarter ended
March 31, 2022 stood at 8.7% against 6.8% in March 31, 2021. Net Interest
Margin (annualised) for the year ended March 31, 2022 stood at 8.2% against
7.8% in March 31, 2021.
Banking outlets as on March 31, 2022, stood at 5,639. The
network consists of 1,189 branches, 4,450 banking units as against 1,147
branches and 4,163 banking units as on March 31, 2021. Total number of ATMs
stood at 471 as on March 31, 2022 against 487 as on March 31, 2021. During the
quarter, the number of employees of the bank has gone up from 55,341 to 60,211.
Commenting on the performance, Chandra Shekhar Ghosh,
Managing Director and CEO of Bandhan Bank said: “Bank has seen best ever
quarterly performance during the quarter backed by robust all round operating
performance and lower credit costs. Given the strong recovery and stable
operating environment we are confident of further improving our performances
during next fiscal as well”
Quarterly Performance:
NII
up, as NIM improves: Interest income of the
bank increased 29% to Rs 3871.57 crore in Q4FY2022, while interest expended rose
7% to Rs 1331.73 crore. NII improved 45% to Rs 2539.84 crore in the quarter
ended March 2022, as NIM of the bank improved to 8.70% in Q4FY2022 from 7.80% in
the previous quarter and 6.80% in the corresponding quarter last year.
Non-interest
income surges: Other income of the bank
increased 23% to Rs 964.40 crore in the quarter ended March 2022.
The net total income increased 38% to Rs 3504.24
crore in the quarter ended March 2022.
Expense
ratio declines: Operating expenses
increased 21% to Rs 982.85 crore, on the back of 34% surge in employee expenses
to Rs 570.38 crore, while the other operating expenses rose 6% to Rs 412.47 crore.
The expense ratio declined to 28.0% in the quarter under review from 32.0% in
Q4FY2021.
Operating profit improved 46% to Rs 2521.39 crore
in Q4FY2022.
Provisions
dips: The provisions and
contingencies declined to Rs 4.72 crore from Rs 1594.31 crore in Q4FY21.
With the overall dip in provisions, the profit
before tax zoomed 1762% to Rs 2516.67 crore in the quarter ended March 2022.
Tax
rate steady: The effective tax rate
for the bank was steady at 24% in Q4FY2022 from 23.78% in Q4FY2021, allowing
the net profit to rise 1746% to Rs 1902.34 crore in the quarter ended March
2022.
Financial Performance FY2022:
For the year ended March 2022 (FY2022), the bank
has recorded 94% decline in net profit to Rs 125.79 crore. The net interest
income improved 15% to Rs 8714.02 crore, while non-interest income also
increased 40% to Rs 2822.82 crore in FY2022. The expense ratio increased to 30.5%
in FY2022 compared to 29.4% in FY2021. The operating expenses increased 25% to
Rs 3523.44 crore, while provision and contingencies jumped 106% to Rs 7884.78 crore.
The profit before tax dipped 96% to Rs 128.62 crore in FY2022. Effective tax
rate fell to 2.2% from 25.2%, restricting decline in the net profit at 94% to
Rs 125.79 crore in FY2022.
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Bandhan Bank: Results
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Particulars
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2203 (3)
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2103 (3)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Interest Earned
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3871.57
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3000.65
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29
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13871.12
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12524.20
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11
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Interest Expended
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1331.73
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1243.65
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7
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5157.10
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4960.86
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4
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Net Interest Income
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2539.84
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1757.00
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45
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8714.02
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7563.34
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15
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Other Income
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964.40
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787.25
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23
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2822.82
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2022.25
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40
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Net Total Income
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3504.24
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2544.25
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38
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11536.84
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9585.59
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20
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Operating Expenses
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982.85
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814.78
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21
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3523.44
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2816.88
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25
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Operating Profits
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2521.39
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1729.48
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46
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8013.40
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6768.72
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18
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Provisions &
Contingencies
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4.72
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1594.31
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-100
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7884.78
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3820.07
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106
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Profit Before Tax
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2516.67
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135.17
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1762
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128.62
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2948.65
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-96
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Provisions for Tax
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614.33
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32.14
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1811
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2.83
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743.20
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-100
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Net Profit
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1902.34
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103.03
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1746
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125.79
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2205.46
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-94
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EPS*(Rs)
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47.2
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2.6
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0.8
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13.7
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Adj BV (Rs)
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94.6
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89.9
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94.6
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89.9
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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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