On April 17, private lender Bandhan Bank revealed a net profit of Rs 55 crore, down from Rs 810 crore the previous year. This was primarily brought on by the bank's substantial loan write-offs of Rs 3,852 crore during the quarter.
According to Bandhan Bank, "The bank has technically written off loans amounting to Rs 3,852 crore during the quarter as a prudent measure and in accordance with its policy." The provisions for the quarter totaled Rs1,774 crore and were charged to profit and loss.
The lender's net interest income (NII) increased by 16 percent to Rs 2,866 crore from Rs 2,472 crore the previous year. In comparison to 7.3 percent the previous year, the net interest margin (NIM) for the quarter was 7.6 percent for the entire year.
Compared to 4.9 percent the previous year, the bank's gross non-performing assets (NPA) were at 3.8 percent. Additionally, the bank's net non-performing assets (NPA) were 1.1% as opposed to 1.2%. Provision Coverage Ratio as of March 31, 2024, is 71.8 percent. In the post-results analyst call, Chandra Shekhar Ghosh, the managing director and chief executive officer (MD and CEO), stated that the bank anticipates improving asset quality with a strong emphasis on recovery. In comparison to Rs3,101 crore the previous year, the bank's net revenue for the quarter was Rs 3,560 crore. A 1.50 rupee dividend per share was suggested by the bank.
By the end of March 2024, deposits had increased by 25% to Rs 1.35 lakh crore, while advances had increased by 14.5% in FY24 to Rs 1.25 lakh crore.
For the quarter, the cost-to-income ratio was 48%. But after accounting for one-time events, the cost to income ratio is still 45%. On May 17, the lender's shares closed at Rs 181.20, up 0.86 percent.
Managing director and Chief Executive Officer Chandra Shekhar Ghosh stated that the bank anticipates the National Credit Guarantee Trust Company (NCGTC) audit of its claims under the Credit Guarantee Fund for Micro Units (CGFMU) and Emergency Credit Line Guarantee Scheme (ECLGS) to be finished shortly. "We anticipate finishing the CGFMU audit shortly. We anticipate a favorable reaction in accordance with the communication," Ghosh stated.
This comes after the bank paid out more than Rs 1,950 crore under the ECLGS in FY 2020–21 and obtained insurance for a portfolio worth Rs 20,800 crores under the CGFMU program. The NCGTC has noted that in order to receive the full guarantee cover, Bandhan Bank either constructed bogus accounts or the loans were evergreen.
