The private lender's net profit tumbled 66.17% to Rs 290.57 crore in Q3 FY23 as against Rs 858.97 crore recorded in Q3 FY22.
Total income stood at Rs 4,840.94 crore in quarter ended 31 December 2022, registering a growth of 17.56% from Rs 4,117.76 crore posted in Q3 FY22.
Net interest income (NII) decreased by 2.1% year on year (YoY) to Rs 2,080.4 crore in Q3 FY23. Net interest margin (NIM) declined to 6.5% in Q3 FY23 as compared to 7.8% reported in the corresponding quarter previous year.
Operating profit in the third quarter declined by 1.4% to Rs 1,922.2 crore from Rs 1,950.1 posted in Q3 FY22. Provision (other than taxes) soared 91.3% to Rs 1,541.5 crore in Q3 FY23 as agaisnt Rs 805.7 crore recorded in the same period a year ago.
Cost to income ratio was at 38.3% in Q3 FY23 as against 41.8% in Q2 FY23 and 31.3% in Q3 FY22.
On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 6,964.76 crore as on 31 December 2022 as against Rs 6,853.85 crore as on 30 September 2022 and Rs 9,441.57 crore as on 31 December 2021.
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The ratio of gross NPAs to gross advances was at 7.15% as on 31 December 2022 as compared to 7.19% as on 30 September 2022, 10.81% as on 31 December 2021.
The ratio of net NPA to net advances stood at 1.86% as on 31 December 2022 as agaisnt 3.01% as on 31 December 2021.
Provision coverage ratio (PCR) improved to 75.4% as on 31 December 2022 from 74.4% as on 31 December 2021.
Total Advances (on book + off book + TLTRO + PTC) grew by 11.1% to Rs 97,787.1 crore as on 31 December 2022 as against Rs 87,997.7 crore as on 31 December 2021.
Total Deposits jumped 21% to Rs 1,02,283.2 crore as on 31 December 2022 as compared to Rs 84,499.8 crore as on 31 December 2021.
Chandra Shekhar Ghosh, MD & CEO, said, The Bank registered good growth in business in the third quarter on a year-on-year basis. In terms of asset quality and stress, we see the worst is behind us and expect overall business momentum to remain robust from Q4 FY23 onwards. The Bank's diversification agenda is well on track and with the operating environment being favourable, the Bank is well poised for its next phase of growth.
Capital Adequacy Ratio (CRAR) stood at 19.1% as on 31 December 2022 as against 20% as on 31 December 2021. Tier-1 was at 18.1% as on 31 December 2022.
The bank's return on average assets (ROA) and return on average equity (ROE) stood at 0.8% and 6.2%, respectively in the quarter ended 31 December 2022.
Bandhan Bank operates as a commercial bank. The banking outlets as on 31 December 2022, stood at 5,723. The network consists of 1,250 branches, 4,473 banking units as against 1,176 branches and 4,450 banking units as on December 31, 2021. During the quarter, the number of employees of the bank has gone up from 64,078 to 66,114.
Shares of Bandhan Bank rose 0.36% to end at Rs 237.05 on the BSE.
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