Personal sector lender Bandhan Bank on Tuesday reported a internet revenue of Rs 731 crore for the quarter ended December, up 121% from the corresponding determine in the identical quarter final yr.
The leap comes on the again of a 62% year-on-year (y-o-y) rise in complete revenue to Rs three,075 crore as the advantages of the financial institution’s acquisition of Gruh Finance got here into play. The lender additionally benefited from a 61.5% drop in provisions to Rs 295 crore.
The financial institution’s internet curiosity revenue (NII) rose 36% y-o-y to Rs 1,541 crore. Internet curiosity margin (NIM), a key indicator of profitability, fell 29 foundation factors (bps) to 7.91% from 10.45% on the finish of June because the presence of secured and low-margin housing loans within the e-book performed out.
The financial institution stated it has made further provisions of Rs 200 crore on normal advances in its microfinance portfolio after evaluating dangers noticed in sure areas of a Northeastern state.
MD and CEO Chandra Shekhar Ghosh stated the unrest in Assam doesn't pose an distinctive problem to the financial institution. “We've got seen such points earlier than in 2010, 2016 and 2017. Each time such incidents occur, they proceed for a most of three months,” Ghosh stated, including that whereas the on-time reimbursement (OTR) ratio for the financial institution’s whole microfinance portfolio is 98.1%, the OTR for Assam is 93.6%.
Bandhan’s microfinance publicity is Rs 6,500 crore, which constitutes 16% of its microfinance portfolio and 10% of its complete mortgage guide. Asset high quality on the financial institution deteriorated from the earlier quarter, with the gross non-performing asset (NPA) ratio rising to 1.93% from 1.76% on the finish of September. The web NPA ratio rose 25 bps sequentially to zero.56%.
Complete advances as on September 30, 2019, stood at Rs 65,456 crore, up 41.four% from the earlier yr, whereas complete deposits rose 58.5% y-o-y to Rs 54,908 crore. The present account financial savings account (Casa) ratio dropped to 34.31% from 41.four% on the finish of December 2018. Retail deposits accounted for 76% of all deposits.
Microfinance loans accounted for 61% of Bandhan Financial institution’s mortgage ebook, house loans made up for 29%, whereas 10% of the ebook was constituted of small and medium enterprises (SME) and private loans.
Analysts stated the occasions within the NorthEast have clearly had a bearing on the financial institution’s operations and income progress. “Operationally, (the quarter was) a bit weak, provided that the second half often tends to be stronger on enterprise momentum. It's fairly doubtless that the influence of the problems in North-East India has had an impression on efficiency,” analysts at Kotak Securities stated in a word to its shoppers.