Bandhan Bank Q2 profit jumps 5.6 times as asset quality improves
Bandhan Bank reported a five-fold rise in Q2 profit to Rs 622 crore, supported by lower provisions and improving asset quality. Net interest income grew 14%, margins strengthened, gross advances increased 13%, and deposits rose 9% year-on-year.
Bandhan Bank on Wednesday reported an over five-fold jump in net profit for the second quarter at Rs 622 crore over Rs 112 crore in the year-ago period, helped by 38% lower provisions following improvement in asset quality.The Kolkata-headquartered private sector lender managed to reduce gross non-performing assets ratio to 3.11% at the end of September from 5.02% a year prior in tandem with the recovery in the unsecured loan market, which contributed about a third to its total portfolio."I would like to highlight that this is the best profit number in the last eight quarters, instead of the 5.6 times rise, which is a reflection of steady growth helped by a shift towards a more secular and diversified advance portfolio," managing director Partha Pratim Sengupta said after announcing the quarterly earnings.The bank's pre-provision operating profit for the quarter stood 19% higher at Rs 1,556 crore over Rs 1,310 crore in the year-ago period.
