Bandhan Bank reports 10% YoY jump in Q3 net at Rs 331 crore
The bank had posted a net profit of Rs 300.04 crore in the corresponding quarter last year.
It had posted a net profit of Rs 300.04 crore in the corresponding quarter last year.
Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said, "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."
Net interest margin stood at Rs 10.50 per cent in December quarter as against 10.30 per cent in the same quarter last year. The figure stood at 33.20 in Q2FY19.
Net interest income (Nll) for the quarter increased 53.5 per cent to Rs 1,124 crore as against Rs 732 crore in the same quarter last year.
Percentage of gross non-performing assets NPA climbed to 2.41 per cent from 1.29 per cent on quarter-on-quarter basis. Percentage of net NPA stood almost flat at 0.70 per cent against 0.69 per cent during the same period.
Provisions and contingencies rose 208 per cent YoY to Rs 377.65 crore in Q3FY19 over Rs 122.55 crore in Q3FY18.
“Provision of Rs 384.95 crore was made in respect of an exposure to a borrower from infrastructure development and finance sector, which was classified as non-performing asset and fully provided for during the quarter,” Bandhan Bank said.
The scrip was trading 1.89 per cent up at Rs 462.95 after the announcement of financial results.
The board of directors of Bandhan Bank and Gruh Finance recently approved the merger of Gruh into Bandhan Bank. The merger would be subject to regulatory and shareholder approvals. The share exchange ratio accepted by the boards of Bandhan Bank and Gruh is 568 equity shares of face value of Rs 10 each of Bandhan Bank to be issued for every 1,000 equity shares of face value of Rs 2 each of Gruh.
“The merger would help Bandhan Bank achieve product and geographic diversification while improving penetration in its core customer segment. Gruh will get access to a wider distribution network, a larger customer base and low cost deposit base of Bandhan Bank,” the bank said in a release.
Post-merger, based on pro-forma financials as of September 30, 2018, Bandhan Bank would have outstanding loan book AUM of Rs 50,036 crore. Loan book would consist of micro loans (58%), retail home loans (28%) and other loans (14%).
Merged entity would have more than 31,000 employees serving about 1.6 crore customers across the country. Post-merger, the shareholding of Bandhan Financial Holdings Limited (NOFHC) in Bandhan Bank would reduce from 82.3 per cent to 61 per cent.