IL&FS classified as NPA by the lender; overall asset quality, too, shows deterioration
Bandhan Bank reported a growth of 10 percent in its net profit for December quarter at Rs 331.3 crore against Rs 300 crore during the same period of last year.
The net interest income grew 54 percent at Rs 1,124 crore against Rs 732 crore last year.
Operating profit for the quarter under review rose 57 percent at Rs 900 crore against Rs 574 crore in the same quarter of last year.
The net interest margin (NIM) for the quarter under review stood at 10.3 percent against 9.9 percent in the corresponding quarter of last year.
The lender has provided for Rs 384.95 crore in respect of an exposure to IL&FS and has been classified as a non-performing asset and fully provided for. Overall provisions rose to Rs 377.6 crore against Rs 124.1 crore quarter on quarter.
Meanwhile, asset quality has seen some weakness, with gross NPA ratio rising to 2.41 percent against 1.29 percent during the previous quarter. The net NPA ratio was at 0.70 percent against 0.69 percent in the preceding quarter.
"Our core business of microbanking and deposits — particularly retail including CASA has continued its strong performance in Q3FY19. With the announcement of the merger with the Gruh Finance, we are excited and confident to accelerate this growth in affordable housing segment," Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said in an exchange filing.To know all latest earnings, Click HereThe Great Diwali Discount!
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