Bandhan Bank shares tanked nearly 8 percent in the early hours of trade on October 31.
The lender had on October 28 reported a net profit of Rs 209.3 crore for the quarter ended September (Q2FY23) against a loss of Rs 3,008.6 crore reported in the same quarter last year. Sequentially, profit fell by 76.4 percent.
At 9:46am, Bandhan Bank was quoting at Rs 244.95, down Rs 20.25, or 7.64 percent. The share touched its 52-week high Rs 349.50 and 52-week low Rs 229.65 on May 17, 2022 and December 27, 2021. It is now trading 29.91 percent below its 52-week high and 6.66 percent above its 52-week low.
The private lender reported a net interest income (NII) of Rs 2,193 crore, up 13.3 percent year-on-year (YoY) from Rs 1,935.4 crore reported a year back. Total advances grew by 17.4 percent to Rs 95,834.9 crore, against Rs 81,661.2 crore logged in the year-ago period. Total deposits increased by 21.3 percent to Rs 99,365.8 crore compared to Rs 81,898.3 crore.
NIM (net interest margin) for the quarter stood at 7 percent. RoA (return on assets) and RoE (return on equity) – both annualised – for Q2FY23 stood at 0.6 percent and 4.5 percent, respectively.
“As we enter the H2 FY23, the focus shifts on growth and with pandemic-related stress phasing out, we look forward to the end of FY23 on a high note,” said Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank.
The company also reported improvement in asset quality. Gross non-performing assets (NPA) as on September 30, 2022, improved to 7.19 percent against 10.8 percent YoY and 7.25 percent quarter-on-quarter (QoQ). Net NPAs improved to 1.86 percent against 3.04 percent and 1.92 percent, respectively.
The company kept aside 1279.7 crore for contingencies, which was nearly double of the previous quarter but down 77.2 percent YoY. The provision coverage ratio (PCR) was at 75.5 percent against 74.1 percent a year ago.
CASA (current account and savings account) grew 10.9 percent YoY while CASA ratio (ratio of CASA to total deposits), which indicates the operating efficiency of a bank, dipped to 40.8 percent against 44.6 percent YoY.
Bandhan Bank said banking outlets as of September 30, 2022, stood at 5,646. The network consisted of 1,190 branches, and 4,456 banking units as against 1,168 branches and 4,450 banking units as on September 30, 2021.
The total number of ATMs stood at 432 as of September 30, 2022, against 487 as of September 30, 2021. During the quarter, the number of employees at the bank went up from 61,247 to 64,078.
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