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Bandhan Bank has reported
245% growth in net profit at Rs 721.16 crore for the quarter ended September
2023 (Q2FY2024). The bank has posted 11% growth in net interest income (NII),
while the core fee income of the bank also improved 27% in Q2FY2024. The Net
Interest Margin (NIM) of the bank improved to 7.20% in Q2FY2024 compared to
7.00% in the corresponding quarter of previous year.
On business front, the bank as has
posted 13% growth in business with 12% increase in loan book. The asset quality
of the bank remained under pressure in Q2FY2024. The credit to deposit ratio of
the bank was steady at 96.0% at end September 2023 from 96.4% at end September
2022. However, the CASA ratio of the bank has declined to 38.5% at end
September 2023 from 40.8% at end September 2022.
Asset quality remains under pressure: The bank has witnessed some moderation
in the asset quality with elevated fresh slippages of loans in Q2FY2024.
The fresh slippages of loans stood at
Rs 1320 crore in Q2FY2024 compared with 1940 crore in previous quarter and Rs
3954 crore in the corresponding quarter last year.
The recoveries and upgradations of NPAs
was at Rs 410 crore, while the write-off of loans was nil in Q2FY2024.
Provision coverage ratio was steady at
70.0% at end September 2023 compared to 69.2% a quarter ago, while eased from 75.5%
a year ago.
The capital adequacy ratio of the bank
stood at 19.2% with Tier I ratio at 18.2% at end September 2023.
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Asset Quality
Indicators: Bandhan Bank
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Sep/23
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Jun/23
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Mar/23
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Dec/22
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Sep/22
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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7873.83
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6960.40
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5298.62
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6964.76
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6853.85
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13
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49
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15
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Net NPA (Rs Crore)
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2365.19
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2140.71
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1228.27
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1711.30
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1678.16
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10
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93
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41
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% Gross NPA
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7.32
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6.76
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4.87
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7.15
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7.19
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56
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245
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13
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% Net NPA
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2.32
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2.18
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1.17
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1.86
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1.86
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14
|
115
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46
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% PCR
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70.00
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69.20
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76.80
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75.40
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75.50
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80
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-680
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-550
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% CRAR - Basel III
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19.21
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19.75
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19.76
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19.10
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19.37
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-54
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-55
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-16
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% CRAR - Tier I - Basel III
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18.20
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18.80
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18.70
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18.10
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18.40
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-60
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-50
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-20
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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:
Double digit business growth: The business of the bank has increased
13% YoY to Rs 219709 crore end September 2023, driven by 12% rise in advances
to Rs 107630 crore. Deposits increased 13% to Rs 112079 crore at end September
2023.
CASA deposits ratio rises sequentially:
The CASA deposits of the bank moved up 7%
YoY to Rs 43200 crore at end September 2023. The current account deposits
increased 25% to Rs 6290 crore, while saving account deposits rose 4% to Rs
36910 crore end September 2023. The CASA ratio declined to 38.5% at end
September 2023 compared to 40.8% at end September 2022, while improved from
36.0% a quarter ago. The term deposits have increased 17% to Rs 68879 crore end
September 2023.
Double digit loan growth: Advances growth was driven by retail
loans other than housing rising by 80% end September 2023, while commercial
bank credit increased 65%. The housing finance loan book rose 4%, while the
microfinance loan book was flat end September 2023.
Investment book of the bank rose 4% YoY to Rs 31839 crore at end September 2023.
Margins improve: The bank has showed 100 bps YoY jump in
cost of deposits to 6.50% , while yield on advances increased 130 bps YoY to
13.30% in Q2FY2024. Thus, the NIM has improved 20 bps YoY to 7.20% .
Branch expansion: The bank has added 79 branches in
Q2FY2024, taking overall tally to 1621 branches and 438 ATM`s end September
2023.
Book value of the bank stood at Rs 129.1 per share
at end September 2023, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 113.7 per share at end September 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 19% increase in the
interest earned at Rs 4491.93 crore, while interest expenses increased 30% to
Rs 2048.57 crore in Q2FY2024. NII improved 11% to Rs 2443.36 crore in the
quarter ended September 2023.
Healthy growth in the core fee income: Bank has posted strong 27% growth in
core fee income to Rs 374 crore, while the treasury income jumped 368% to Rs 36
crore, leading to 13% rise in the
overall non-interest income to Rs 540.25 crore in the quarter ended September
2023. The other income declined 25% to Rs 131 crore.
Expenses ratio jumps: The operating expenses of the bank
increased 25% to Rs 1400.22 crore, as other expenses moved up 19% to Rs 537.93
crore, while employee expenses increased 29% to Rs 862.29 crore in Q2FY2024.
Cost to income ratio jumped to 46.9% in Q2FY2024 compared with 41.8% in
Q2FY2023. The operating profit rose 2% to Rs 1583.39 crore.
Provisions and contingencies decline: The bank has showed -50% decline in
provisions to Rs 636.15 crore.
Effective tax rate was steady at
23.9% in Q2FY2024 from 23.4% in
Q2FY2023. Net Profit jumped by 245% YoY to Rs 721.16 crore during quarter ended
September 2023.
Chandra Shekhar Ghosh, Managing
Director and CEO of Bandhan Bank said: “The performance in this quarter is
encouraging for the bank. We have successfully completed a significant IT
transformation project which will not only boost customer experience but also
our capabilities, resulting in further growth. The Bank has also made
significant progress in diversifying its asset book geographically as well as
in terms of product mix. We are already seeing signs of uptick in growth and
are confident that the Bank is on the expected growth trajectory.”
Financial Performance H1FY2024:
Bank has posted 32% increase in net
profit to Rs 1442.22 crore in the half year ended September 2023 (H1FY2024).
The net interest income increased 5% to Rs 4933.99 crore, while non-interest
income moved up 15% to Rs 925.37 crore, pushing up net total income by 6% to Rs
5859.36 crore in H1FY2024. The operating expenses increased 27% to Rs 2713.66
crore, while provision and contingencies declined 36% to Rs 1238.24 crore,
allowing profit before tax to increase 31% to Rs 1907.46 crore in H1FY2024. The
cost-to-income ratio surged to 46.3% in H1FY2024 compared to 38.8% in H1FY2023.
An effective tax rate was steady at 24.4% in H1FY2024 compared to 24.5% in
H1FY2023. The net profit moved up 32% to Rs 1442.22 crore in H1FY2024.
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Bandhan Bank: Results
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Particulars
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2309 (3)
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2209 (3)
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Var %
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2309 (6)
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2209 (6)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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4491.93
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3773.45
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19
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9014.85
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7828.81
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15
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15904.70
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13871.12
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15
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Interest Expended
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2048.57
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1580.46
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30
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4080.86
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3121.40
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31
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6645.08
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5157.10
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29
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Net Interest Income
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2443.36
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2192.99
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11
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4933.99
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4707.41
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5
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9259.62
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8714.02
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6
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Other Income
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540.25
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476.41
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13
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925.37
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806.11
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15
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2468.55
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2822.82
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-13
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Net Total Income
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2983.61
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2669.40
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12
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5859.36
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5513.52
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6
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11728.17
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11536.84
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2
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Operating Expenses
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1400.22
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1116.52
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25
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2713.66
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2139.99
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27
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4636.82
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3523.44
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32
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Operating Profits
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1583.39
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1552.88
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2
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3145.70
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3373.53
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-7
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7091.35
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8013.40
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-12
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Provisions & Contingencies
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636.15
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1279.67
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-50
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1238.24
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1922.10
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-36
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4198.37
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7884.78
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-47
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Profit Before Tax
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947.24
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273.21
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247
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1907.46
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1451.43
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31
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2892.98
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128.62
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2149
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Provision for tax
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226.08
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63.95
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254
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465.24
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355.65
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31
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698.35
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2.83
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24577
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PAT
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721.16
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209.26
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245
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1442.22
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1095.78
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32
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2194.63
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125.79
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1645
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EPS*(Rs)
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17.9
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5.2
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17.9
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13.6
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13.6
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0.8
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Adj BV (Rs)
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113.7
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102.2
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113.7
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102.2
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112.7
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94.6
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* Annualized on current equity
of Rs 1610.86 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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