Bandhan Bank Q3 profit plunges 14 per cent

 The bank had posted a net profit of Rs 731 crore for the same period of the previous fiscal year.
For representational purposes (File | Reuters)
For representational purposes (File | Reuters)

NEW DELHI:  Kolkata-based Bandhan Bank on Thursday reported a 14 per cent decline in its net profit for the quarter ended December at Rs 632.59 crore as Covid-19 related provisions more than trebled.  The bank had posted a net profit of Rs 731 crore for the same period of the previous fiscal year.

“During the quarter the bank has taken accelerated additional provision on standard advances amounting to Rs 1,000 crore. With this provision and additional standard assets provision that bank is carrying in micro banking portfolio total additional provision in books stands at Rs 3,119 crore,” the bank said. 

Total income during the period under review rose 38.3 per cent to Rs 2,625 crore from Rs 1,898 crore in the same period of 2019-20. In terms of operating performance, Net interest income rose 34.5 per cent from a year ago to Rs 2,071 crore. Other income rose 55 per cent to Rs 553 crore.

On asset front, gross NPAs as on December 31, 2020 stood at Rs 859.2 crore (1.1 per cent of gross advances) as against Rs 1,182 crore (1.9 per cent) by the year-ago same period.

The micro loans-focussed lender also flagged concerns over the impact of a recent law on MFI loans in poll-bound Assam, which constitutes 8 per cent of its total book, saying the loan collections have suffered in the last fortnight and it will be cautious while extending new loans. 

“Collection efficiencies which had risen to 92 per cent as of December 31, from 88 per cent in September, have gone down to 90 per cent in the last fortnight,” said CEO and MD C S Ghosh.

Conservative about lending

Bandhan bank will be conservative about new lending in Assam because of repayment troubles. It feels the situation will be challenging for the 2-3 months.

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