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Bandhan Bank has reported 152% growth in net profit at Rs 732.72 crore for the
quarter ended December 2023 (Q3FY2024). The bank has posted healthy 21% growth
in net interest income (NII), while the core fee income of the bank improved 8%
in Q3FY2024. The Net Interest Margin (NIM) of the bank improved to 7.20% in
Q3FY2024 compared to 6.50% in the corresponding quarter of previous year.
On business front, the
bank as has posted 17% growth in business with strong 19% surge in loan book. The
asset quality of the bank was stable in Q3FY2024. Bank has substantially raised
the credit to deposit ratio to 98.7% at end December 2023 from 95.6% at end
December 2022. CASA ratio of the bank has declined marginally to 36.1% at end
December 2023 from 36.4% at end December 2022.
Asset quality improves: The bank has maintained
stable asset quality in Q3FY2024.
The fresh slippages of
loans stood at Rs 1390 crore in Q3FY2024 compared with 1320 crore in previous
quarter and Rs 3265 crore in the corresponding quarter last year.
The recoveries and upgradations
of NPAs was at Rs 410 crore, while the bank has conducted sales of NPAs to ARCs
of Rs 720 crore in Q3FY2024.
Provision coverage ratio
was steady at 70.00% at end December 2023 compared to 70.00% a quarter ago,
while eased from 75.40% a year ago.
The capital adequacy
ratio of the bank stood at 17.9% with Tier I ratio at 16.9% at end December
2023.
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Asset Quality
Indicators: Bandhan Bank
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Dec/23
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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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Variation
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QoQ
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YTD
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YoY
|
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Gross NPA (Rs Crore)
|
8135.54
|
7873.83
|
6960.40
|
5298.62
|
6964.76
|
3
|
54
|
17
|
|
Net NPA (Rs Crore)
|
2439.57
|
2365.19
|
2140.71
|
1228.27
|
1711.30
|
3
|
99
|
43
|
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% Gross NPA
|
7.02
|
7.32
|
6.76
|
4.87
|
7.15
|
-30
|
215
|
-13
|
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% Net NPA
|
2.21
|
2.32
|
2.18
|
1.17
|
1.86
|
-11
|
104
|
35
|
|
% PCR
|
70.00
|
70.00
|
69.20
|
76.80
|
75.40
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0
|
-680
|
-540
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% CRAR - Basel III
|
17.86
|
19.21
|
19.75
|
19.76
|
19.10
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-135
|
-190
|
-124
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% CRAR - Tier I -
Basel III
|
16.90
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18.20
|
18.80
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18.70
|
18.10
|
-130
|
-180
|
-120
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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:
Healthy business growth:
The business of the bank
has increased 17% YoY to Rs 233360 crore end December 2023, driven by 19% surge
in advances to Rs 115940 crore. Deposits rose 15% to Rs 117420 crore at end
December 2023.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 14% YoY to Rs 42410 crore at end December
2023. The current account deposits jumped 41% to Rs 6660 crore, while saving
account deposits increased 10% to Rs 35750 crore end December 2023. The CASA
ratio eased to 36.1% at end December 2023 compared to 36.4% at end December
2022, while declined from 38.5% a quarter ago. The term deposits have increased
15% to Rs 75010 crore end December 2023.
Strong loan growth: Advances growth was
driven by retail loans rising 11% YoY to Rs 90940 crore at end December 2023, while
credit to MSME jumped 60% to Rs 25000 crore at end December 2023.
Investment book of the bank declined 6% YoY to Rs 29310 crore at end December
2023.
Margins improve yoy: The bank has showed 80 bps
YoY jump in cost of deposits to 6.60%, while yield on advances increased 140 bps
YoY to 13.40% in Q3FY2024. Thus, the NIM has improved 70 bps YoY to 7.20%, while
it was steady from 7.2% in Q2FY2024.
Branch expansion: The bank has added 26 branches
taking overall tally to 1647 branches and 438 ATM`s end December 2023.
Book value of the bank stood at Rs 133.7
per share at end December 2023, while the adjusted book value (net of NNPA and
10% of restructured advances) was Rs 117.9 per share at end December 2023.
Quarterly Performance
NII rises as NIM
improves: Bank
has recorded 23% increase in the interest earned at Rs 4665.43 crore, while
interest expenses increased 24% to Rs 2140.07 crore in Q3FY2024. NII improved 21%
to Rs 2525.36 crore in the quarter ended December 2023.
Moderate growth in the
core fee income: Bank has posted strong 8% growth in core fee income to Rs 359 crore.
However, the recoveries and other income dipped 73% to Rs 176 crore and he
treasury income also plunged 76% to Rs 10 crore, causing 47% dip in the overall
non-interest income to Rs 545.16 crore in the quarter ended December 2023.
Stable expenses ratio: The operating expenses
of the bank increased 19% to Rs 1415.21 crore, as other expenses moved up 2% to
Rs 516.49 crore, while employee expenses increased 31% to Rs 898.72 crore in
Q3FY2024. Cost to income ratio jumped to 46.1% in Q3FY2024 compared with 38.3% in
Q3FY2023, causing 14% decline in the Operating Profit to Rs 1655.31 crore.
Provisions and
contingencies decline: The provisions dipped 56% to Rs 684.01 crore, boosting the PBT up
by 155% to Rs 971.30 crore in Q3FY2024.
Effective tax rate rose to 24.6% in Q3FY2024 from 23.7% in Q3FY2023. Net Profit rose by 152% YoY
to Rs 732.72 crore during quarter ended December 2023.
Financial Performance
9MFY2024:
Bank has posted 57% increase
in net profit to Rs 2174.94 crore in the nine month ended December 2023
(9MFY2024). The net interest income increased 10% to Rs 7459.34 crore, while
non-interest income declined 20% to Rs 1470.54 crore. The net total income rose
4% to Rs 8929.88 crore in 9MFY2024. The operating expenses increased 24% to Rs 4128.87
crore, while provision and contingencies dipped 45% to Rs 1922.25 crore, allowing
profit before tax to increase 57% to Rs 2878.76 crore in 9MFY2024. The
cost-to-income ratio increased to 46.2% in 9MFY2024 compared to 38.6% in
9MFY2023. An effective tax rate was steady at 24.4% in 9MFY2024 compared to 24.3%
in 9MFY2023. The net profit has increased 57% to Rs 2174.94 crore in 9MFY2024.
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Bandhan Bank: Results
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Particulars
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2312 (3)
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2212 (3)
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Var %
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2312 (9)
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2212 (9)
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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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4665.43
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3807.64
|
23
|
13680.28
|
11636.45
|
18
|
15904.70
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13871.12
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15
|
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Interest Expended
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2140.07
|
1727.21
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24
|
6220.94
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4848.60
|
28
|
6645.08
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5157.10
|
29
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Net Interest Income
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2525.36
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2080.43
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21
|
7459.34
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6787.85
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10
|
9259.62
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8714.02
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6
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Other Income
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545.16
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1033.31
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-47
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1470.54
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1839.41
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-20
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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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3070.52
|
3113.74
|
-1
|
8929.88
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8627.26
|
4
|
11728.17
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11536.84
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2
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Operating Expenses
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1415.21
|
1191.56
|
19
|
4128.87
|
3331.56
|
24
|
4636.82
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3523.44
|
32
|
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Operating Profits
|
1655.31
|
1922.18
|
-14
|
4801.01
|
5295.70
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-9
|
7091.35
|
8013.40
|
-12
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Provisions &
Contingencies
|
684.01
|
1541.50
|
-56
|
1922.25
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3463.60
|
-45
|
4198.37
|
7884.78
|
-47
|
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Profit Before Tax
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971.30
|
380.68
|
155
|
2878.76
|
1832.10
|
57
|
2892.98
|
128.62
|
2149
|
|
Provision for tax
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238.58
|
90.11
|
165
|
703.82
|
445.75
|
58
|
698.35
|
2.83
|
24577
|
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PAT
|
732.72
|
290.57
|
152
|
2174.94
|
1386.35
|
57
|
2194.63
|
125.79
|
1645
|
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EPS*(Rs)
|
18.2
|
7.2
|
|
18.0
|
11.5
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|
13.6
|
0.8
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Adj BV (Rs)
|
117.9
|
104.1
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|
117.9
|
104.1
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|
112.7
|
94.6
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* Annualized on current equity of
Rs 1610.92 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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