Bandhan Bank Q4’s net volume increased to Rs 1,902 million; NII increased by 45% to Rs 2,539.8 kr

Bandhan Bank Q4's net volume increased to Rs 1,902 million;  NII increased by 45% to Rs 2,539.8 kr

Private sector lender Bandhan Bank’s net profit took off to Rs 1,902 crore in the January-March quarter of FY22 contrasted with Rs 103 crore in similar period a year prior, helped by low provisions  and higher net interest income (NII). In the past quarter, it had acquired net profit worth Rs 859 crore. NII of the lender expanded 45% to Rs 2,539.8 crore, as the advances of the lender bounced 14% year-on-year (YoY). Non-interest pay rose 38% to Rs 964.4 crore in a similar period.

Asset quality of the lender improved, with gross NPAs at 6.46 per cent compared to 10.8 per cent in the preceding quarter. Net NPAs dropped to 1.66 per cent in the same period. Collection efficiency of the bank stood at 99 per cent, with the micro credit portfolio showing a collection efficiency of 99 per cent, excluding NPAs.

Net interest margin (NIM), a measure of profitability, increased to 8.7 per cent in the current quarter versus 7.8 per cent in the preceding quarter. Provisions of the lender fell to Rs 4.7 crore in Q4FY22 versus Rs 1,570.7 crore in the same period a year-ago, a drop of nearly 100 per cent. The bank’s NPAs have come down significantly hence the provisions of the lender have decreased.

Advances of the lender grew 14 per cent to Rs 99,340 crore at the end of the March quarter, with housing finance portfolio growing at 16.6 per cent YoY, commercial banking portfolio growing at 61 per cent, and retail loans growing at 40 per cent. The emerging entrepreneur’s business (EEB) portfolio saw a growth of 7 per cent YoY.

“We feel that our micro credit loans are gradually coming down, proportionate to the total bank advances, and we by 2025, micro credit loans share will be 26 per cent,” said Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank.

The bank’s strategic plan is to diversify its loan portfolio, which is currently very heavy on the micro credit side, to non-micro credit loans. The bank’s micro credit portfolio was 60 per cent last year, which now stands at 47 per cent. Housing loans share has increased to 24 per cent, and commercial banking portfolio share is now 28 per cent.

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