The lender records a net profit of Rs 209.3 cr

Bandhan Bank reported a net profit of Rs 209.3 crore for the quarter ending September (Q2FY23) on October 28, compared to a loss of Rs 3,008.6 crore in the same quarter last year.

Net interest income (NII) from the private lender was Rs 2,193 crore, up 13.3% year on year (YoY) from Rs 1,935.4 crore in the previous quarter.

Total advances increased by 17.4% to Rs 95,834.9 crore from Rs 81,661.2 crore in the previous year. Total deposits increased by 21.3% to Rs 99,365.8 crore from Rs 81,898.3 crore.

Net interest margin (NIM) for the quarter was 7%. RoA (return on assets) and RoE (return on equity) were 0.6% and 4.5%, respectively, for Q2FY23.

“As we enter H2 of FY23, the focus is on growth and with pandemic stress easing, we look forward to ending FY23 on a positive note” , said Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank.

Additionally, the company reported an improvement in the quality of its assets. Gross non-performing assets (NPA) improved to 7.19% as of September 30, 2022, from 10.8% YoY and 7.25% QoQ. Net NPAs fell to 1.86% from 3.04% and 1.92%, respectively.

The company set aside 1279.7 crores for contingencies, roughly double the previous quarter but 77.2% lower year-on-year. The provision coverage ratio (PCR) was 75.5%, compared to 74.1% the previous year.

CASA (current and savings accounts) rose 10.9% year-on-year, while CASA (the ratio of CASA to total deposits), which measures a bank’s operational efficiency, fell to 40.8% from 44.6% year-on-year.

Bandhan Bank had 5,646 bank branches as of September 30, 2022. As of September 30, 2021, the network had 1,190 branches and 4,456 banking units, compared to 1,168 branches and 4,450 banking units as of September 30, 2021.

As of September 30, 2022, the total number of ATMs was 432, compared to 487 as of September 30, 2021. The number of bank employees increased from 61,247 to 64,078 throughout the quarter.

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