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Bandhan Bank has reported
93% dip in net profit at Rs 54.63 crore for the quarter ended March 2024
(Q4FY2024). During the quarter, as a prudent measure and in accordance with its
policy, the bank has technically written off loans amounting to Rs 3852 crore
leading to increase in provisions to Rs 1774 crore from Rs 735 crore in
Q4FY2023 and causing dip in the net profit for Q4FY2024.
The bank has posted healthy 16% growth
in net interest income (NII), while the core fee income of the bank fell 7% in
Q4FY2024. The Net Interest Margin (NIM) of the bank improved to 7.60% in
Q4FY2024 compared to 7.30% in the corresponding quarter of previous year and
7.2% in the previous quarter.
On business front, the bank as has
posted 20% growth in business with strong 14% surge in loan book. The asset
quality of the bank has improved in Q4FY2024. Bank has substantially reduced the
credit to deposit ratio to 92.2% at end March 2024 from 101.0% at end March
2023. CASA ratio of the bank has declined to 37.1% at end March 2024 from 39.3%
at end March 2023.
Asset quality improves: The bank has improved asset quality with
significant write off of bad loans and provisioning in Q4FY2024.
The fresh slippages of loans stood at
Rs 1020 crore in Q4FY2024 compared with 1390 crore in previous quarter and Rs 1118
crore in the corresponding quarter last year.
The recoveries and upgradations of NPAs
was at Rs 520 crore and the write-off of loans was at Rs 3850 crore in
Q4FY2024.
Provision coverage ratio was at 71.80% at
end March 2024 compared to 70.00% a quarter ago and 76.80% a year ago.
The capital adequacy ratio of the bank
stood at 18.3% with Tier I ratio at 17.2% at end March 2024.
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Asset Quality
Indicators: Bandhan Bank
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Mar/24
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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4784.88
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8135.54
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7873.83
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6960.40
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5298.62
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-41
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-10
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Net NPA (Rs Crore)
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1347.61
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2439.57
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2365.19
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2140.71
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1228.27
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-45
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10
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% Gross NPA
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3.84
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7.02
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7.32
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6.76
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4.87
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-318
|
-103
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% Net NPA
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1.11
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2.21
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2.32
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2.18
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1.17
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-110
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-6
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% PCR
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71.80
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70.00
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70.00
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69.20
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76.80
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180
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-500
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% CRAR - Basel III
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18.28
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17.86
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19.21
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19.75
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19.76
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42
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-148
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% CRAR - Tier I - Basel III
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17.20
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16.90
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18.20
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18.80
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18.70
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30
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-150
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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 20%
YoY to Rs 259922 crore end March 2024, driven by 14% surge in advances to Rs 124720
crore. Deposits surged 25% to Rs 135202 crore at end March 2024.
Strong CASA deposits growth: The CASA deposits of the bank increased
18% YoY to Rs 50150 crore at end March 2024. The current account deposits surged
50% to Rs 9660 crore, while saving account deposits increased 12% to Rs 40490 crore
end March 2024. The CASA ratio declined to 37.1% at end March 2024 compared to 39.3%
at end March 2023, while improved from 36.1% a quarter ago. The term deposits
have increased 30% to Rs 85052 crore end March 2024.
Strong loan growth: Advances growth was driven by retail
loans rising 10% YoY to Rs 97740 crore at end March 2024, while credit to MSME jumped
34% to Rs 26980 crore at end March 2024.
Investment book of the bank declined 10% YoY to Rs 29288 crore at end March
2024.
Margins improve: The bank has showed 110 bps YoY jump in
cost of deposits to 6.90%, while yield on advances increased 110 bps YoY to 13.80%
in Q4FY2024. NIM has improved 30 bps YoY to 7.60%.
Branch expansion: The bank has added 53 branches in
Q4FY2024, taking overall tally to 1700 branches and 438 ATM`s end March 2024.
Book value of the bank stood at Rs 133.9 per share
at end March 2024, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 125.2 per share at end March 2024.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 22% increase in the
interest earned at Rs 5189.34 crore, while interest expenses increased 29% to
Rs 2323.07 crore in Q4FY2024. NII improved 16% to Rs 2866.27 crore in the
quarter ended March 2024.
Subdued fee income: Bank has posted 7% decline in core fee
income to Rs 468 crore, while the recoveries and other income declined 15% to
Rs 162 crore. The overall non-interest income increased 10% to Rs 694.12 crore in
the quarter ended March 2024.
Expenses ratio jumps: The operating expenses of the bank
increased 32% to Rs 1721.90 crore, as other expenses moved up 30% to Rs 751.7 crore,
while employee expenses increased 33% to Rs 970.2 crore in Q4FY2024. Cost to
income ratio increased to 48.4% in Q4FY2024 compared with 42.1% in Q4FY2023. The
Operating Profit rose 2% to Rs 1838.49 crore in Q4FY2024.
Provisions and contingencies zooms: The bank has showed 141% surge in
provisions to Rs 1774.33 crore.
Effective tax rate declined to
14.9% in Q4FY2024
from 23.8% in Q4FY2023. Net Profit dipped 93% YoY to Rs 54.63 crore during
quarter ended March 2024.
Financial Performance FY2024:
Bank has posted 2% increase in net
profit to Rs 2229.57 crore in the year ended March 2024 (FY2024). The net
interest income increased 12% to Rs 10325.61 crore, while non-interest income declined
12% to Rs 2164.65 crore, pushing up net total income by 6% to Rs 12490.26 crore
in FY2024. The operating expenses increased 26% to Rs 5850.77 crore, while
provision and contingencies declined 12% to Rs 3696.57 crore, allowing profit before
tax to increase 2% to Rs 2942.92 crore in FY2024. The cost-to-income ratio increased
to 46.8% in FY2024 compared to 39.5% in FY2023. An effective tax rate was
steady at 24.2% in FY2024 compared to 24.1% in FY2023. The net profit has
increased 2% to Rs 2229.57 crore in FY2024.
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Bandhan Bank: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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5189.34
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4268.25
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22
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18869.62
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15904.70
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19
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Interest Expended
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2323.07
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1796.48
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29
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8544.01
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6645.08
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29
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Net Interest Income
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2866.27
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2471.77
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16
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10325.61
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9259.62
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12
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Other Income
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694.12
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629.14
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10
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2164.65
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2468.55
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-12
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Net Total Income
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3560.39
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3100.91
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15
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12490.26
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11728.17
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6
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Operating Expenses
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1721.90
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1305.26
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32
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5850.77
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4636.82
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26
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Operating Profits
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1838.49
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1795.65
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2
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6639.49
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7091.35
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-6
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Provisions & Contingencies
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1774.33
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734.77
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141
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3696.57
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4198.37
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-12
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Profit Before Tax
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64.16
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1060.88
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-94
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2942.92
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2892.98
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2
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Provision for tax
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9.53
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252.59
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-96
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713.35
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698.35
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2
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PAT
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54.63
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808.29
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-93
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2229.57
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2194.63
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2
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EPS*(Rs)
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1.4
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20.1
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13.8
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13.6
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Adj BV (Rs)
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125.2
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112.6
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125.2
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112.6
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* Annualized on current equity
of Rs 1610.97 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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