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Bandhan Bank has reported 138% growth in net profit
at Rs 886.50 crore for the quarter ended June 2022 (Q1FY2023). The bank has
posted healthy 19% growth in net interest income (NII). The Net Interest Margin
(NIM) of the bank eased to 8.00% in Q1FY2023 compared to 8.50% in the
corresponding quarter of previous year.
On business front, the bank as has
posted 20% growth in business with strong 20% surge in loan book. The asset
quality of the bank was stable in Q1FY2023. The CASA ratio of the bank has
declined to 44.3% at end June 2022 from 42.9% at end June 2021.
Asset quality showing marginal pressure:
The bank has witnessed some pressure on
asset quality with rise in GNPA level in Q1FY2023.
The GNPA ratio rose 79 bps qoq to 7.25%
and NNPA ratio moved up 26 bps qoq to 1.92% end June 2022.
The standard restructured loan book of
the bank declined to Rs 2140 crore end June 2022.
Provision coverage ratio was steady at 74.90%
at end June 2022 compared to 75.50% a quarter ago and improved from 62.00% a
year ago.
The capital adequacy ratio of the bank
stood at 19.4% with Tier I ratio at 18.3% at end June 2022.
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Asset Quality
Indicators: Bandhan Bank
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Jun-22
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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6967.55
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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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9
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8
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Net NPA (Rs Crore)
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1749.07
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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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12
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-29
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% Gross NPA
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7.25
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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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79
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-93
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% Net NPA
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1.92
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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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26
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-137
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% PCR
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74.90
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75.50
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74.40
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74.10
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62.00
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-60
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1290
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% CRAR - Basel III
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19.44
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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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-66
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-537
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% CRAR - Tier I - Basel III
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18.30
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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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-60
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-550
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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 improves: The business of the bank has increased 20%
YoY to Rs 189707 crore end June 2022, driven by 20% surge in advances to Rs 96650
crore. Deposits rose 20% to Rs 93057 crore at end June 2022.
CASA deposits ratio rises: The CASA deposits of the bank increased
24% YoY to Rs 41190 crore at end June 2022. The CASA ratio improved to 44.3% at
end June 2022 compared to 42.9% at end June 2021, while jumped from 41.6% a
quarter ago.
Strong loan growth: Advances growth was driven by retail
loans rising 62% YoY to Rs 1810 crore at end June 2022, while micro credit increased
9% to Rs 58130 crore and mortgage 27% to Rs 24620 crore at end June 2022. The commercial
banking credit has jumped 81% to Rs 12090 crore end June 2022.
Investment book of the bank jumped 45% YoY
to Rs 32204 crore at end June 2022.
Margins eases: The bank has showed 40 bps YoY decline
in cost of deposits to 5.30%, while yield on advances also declined 80 bps YoY
to 12.90% in Q1FY2023. The NIM has declined 50 bps YoY to 8.00%.
Branch expansion: Banking outlets at end June 2022,
stood at 5640. The network consists of 1190 branches, 4450 banking units as
against 1152 branches and 4422 banking units end June 2021. Total number of
ATMs stood at 429 end June 2022 against 487 end June 2021. During the quarter,
the number of employees of the bank has gone up from 60211 to 61247.
Book value of the bank stood at Rs 113.4 per share
at end June 2022, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 101.2 per share at end June 2022.
Commenting on the
performance, Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank
said: “With Asset Quality and Credit Cost stabilizing, our focus in FY 23 will
be to grow the Balance Sheet and focus on product and geographic
diversification as per Bank’s strategy.”
Quarterly Performance
NII rises on strong loan growth: Bank has recorded 19% increase in the
interest earned at Rs 4055.36 crore, while interest expenses also moved up 19% to
Rs 1540.94 crore in Q1FY2023. NII improved 19% to Rs 2514.42 crore in the
quarter ended June 2022.
Non-interest income dips: Bank has posted 47% dip in the overall
non-interest income to Rs 329.69 crore in the quarter ended June 2022.
Expenses ratio jumps: The operating expenses of the bank
increased 32% to Rs 1023.48 crore, as other expenses moved up 45% to Rs 388.85 crore,
while employee expenses also moved up 26% to Rs 634.63 crore in Q1FY2023. Cost
to income ratio increased to 36.0% in Q1FY2023 compared with 28.3% in Q1FY2022,
causing 7% decline in the operating profit to Rs 1820.63 crore.
Provisions and contingencies dip: The bank has showed 56% decline in
provisions to Rs 642.43 crore.
Effective tax rate was flat at
24.8% in Q1FY2023 from 24.8% in
Q1FY2022. Net Profit jumped 138% YoY to Rs 886.50 crore during quarter ended
June 2022.
Financial Performance FY2022:
Bank has posted 94% dip in net profit
to Rs 125.79 crore in the year ended March 2022 (FY2022). The net interest
income increased 15% to Rs 8714.02 crore, while non-interest income moved up 40%
to Rs 2822.82 crore, pushing up net total income by 20% to Rs 11536.84 crore in
FY2022. The operating expenses increased 25% to Rs 3523.44 crore, while
provision and contingencies galloped 106% to Rs 7884.78 crore, causing 96% dip
in profit before tax to Rs 128.62 crore in FY2022. The cost-to-income ratio rose
to 30.5% in FY2022 compared to 29.4% in FY2021. An effective tax rate declined
to 2.2% in FY2022 compared to 25.2% in FY2021. The net profit has fell 94% to
Rs 125.79 crore in FY2022.
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Bandhan
Bank: Results
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Particulars
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2206 (3)
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2106 (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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4055.36
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3410.01
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19
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13871.12
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12524.21
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11
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Interest Expended
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1540.94
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1295.94
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19
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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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2514.42
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2114.07
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19
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8714.02
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7563.35
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15
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Other Income
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329.69
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616.88
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-47
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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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2844.11
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2730.95
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4
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11536.84
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9585.60
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20
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Operating Expenses
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1023.48
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773.87
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32
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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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1820.63
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1957.08
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-7
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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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642.43
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1460.87
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-56
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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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1178.20
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496.21
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137
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128.62
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2948.65
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-96
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Provision for tax
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291.70
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123.13
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137
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2.83
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743.20
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-100
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PAT
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886.50
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373.08
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138
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125.79
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2205.45
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-94
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EPS*(Rs)
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22.0
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9.3
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0.8
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13.7
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Adj BV (Rs)
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101.2
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92.3
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94.6
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89.9
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*
Annualized on current equity of Rs 1610.80 crore. Face Value: Rs 10, Figures
in Rs crore
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Source:
Capitaline Corporate Database
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