Bandhan Bank on January 20 posted a 66 percent drop in its net profit for the December quarter (Q3FY23) at Rs 290.57 crore amid a sharp jump in provisions and total cost.
The lender had logged Rs 858.97 crore profit in the year-ago period.
Its total expenditure rose 34.65 percent from the year-ago period to Rs 2,918.77 crore. Provisions and contingencies jumped 91.32 percent to Rs 1,541.49 crore versus Rs 805.71 crore year-on-year (YoY).
Meanwhile, net interest income (NII) or the income a bank earns by giving loans, fell marginally by 2.1 percent YoY to Rs 2,080.43 crore. Other income increased nearly 45.74 percent YoY to Rs 1,033.30 crore.
The lender's non-performing assets improved. Gross non-performing assets (GNPAs) fell 26.23 percent to Rs 6,964.76 crore against Rs 9,441.57 crore logged in the same quarter of the previous year.
As a percentage of total loans, gross NPAs stood at 7.15 percent compared to 7.19 percent logged in the previous quarter and 10.81 percent registered in the year-ago period. Net NPAs were flat at 1.86 percent during the quarter under review on a sequential basis. On a YoY basis, it slipped as the figures stood at 3.01 percent in the same quarter last year.
"In terms of asset quality and stress, we see the worst is behind us and expect overall business momentum to remain robust from Q4 FY23 onwards. The Bank’s diversification agenda is well on track and with the operating environment being favourable, the Bank is well poised for its next phase of growth", said Chandra Shekhar Ghosh, MD & CEO.
Advances for the quarter rose 11.1 percent YoY to Rs 97,787 crore. Deposits rose 21 percent to Rs 1.02 lakh crore.
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