Bandhan Bank Q1 net profit doubles to Rs 887 cr due to decline in bad loans

Bandhan Bank on Friday said its June quarter net profit more than doubled to Rs 886.5 crore in April-June 2022-23 aided by decline in bad loans.

The Kolkata-headquartered private sector lender had logged a net profit of Rs 373.1 crore in the year-ago period.

Total income increased to Rs 2,844.1 crore from Rs 2,731 crore. Interest income of the lender jumped to Rs 2,514.4 crore from Rs 2,114.1 crore, Bandhan Bank said in a regulatory filing.

On the asset quality front, the lender witnessed improvement as gross non-performing assets (NPAs) fell to 7.25 per cent of gross advances by June-end 2022 from 8.18 per cent by the year-ago period.

Net NPA too declined to 1.92 per cent from 3.29 per cent in the same quarter a year ago.

As a result, the bank's provision for bad loans and contingencies eased multi-fold to Rs 642.43 crore in the quarter under review from Rs 1,460.86 crore a year ago, it said.

Provision Coverage Ratio of the bank increased to 74.9 per cent as on June 30, 2022 from 61.8 per cent at June-end, 2021.

Capital Adequacy Ratio (CRAR) stood at 19.4 per cent at the end of June 2022 while interest margin rose to 8 per cent.