Tag: Bandhan Bank

Bandhan Bank net profit declines 13 per cent to Rs 633 cr

Banking & Finance

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Bandhan Bank has registered a 13 per cent decline in net profit at Rs 633 crore for the quarter ended December 31, 2020, as against Rs 731 crore for the same period last year on the back of higher provisioning.

During the quarter, the bank made a further provision of Rs 1,000 crore on standard advances against the potential impact of Covid-19. With this provision and an additional standard assets provision, the total additional provision in the books stands at Rs 3,119 crore.

Net Interest Income (NII) for the quarter grew by around 35 per cent to Rs 2,072 crore, as against Rs 1,540 crore in the corresponding quarter of the previous year.

Non-interest income grew by 55 per cent to Rs 553 crore, as compared with Rs 358 crore in the corresponding quarter last year. Operating profit increased by 51 per cent to Rs 1,914 crore, as against Rs 1,264 crore.

The net interest margin (annualised) for the quarter ending December 31, 2020, stood at 8.3 per cent, against 7.9 per cent in December 31, 2019.

“This quarter showed a robust performance operationally, backed by higher growth, lower cost of funds and aided by non-interest income and strong retail deposits and CASA. During the quarter, we further strengthened the balance sheet by taking accelerated additional provision on standard advances amounting to ₹1,000 crore taken for Covid-19. With Q4 historically being the best for us every financial year, we forward to a similar performance in the last quarter of this financial year as well,” Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank, said.

Gross non-performing assets as a percentage of advances stood at 1.11 per cent (1.93 per cent) and net NPAs at 0.26 per cent (0.81 per cent).

 

The bank’s collection efficiency, which stood at around 89 per cent during the quarter ended September 2020, improved to around 92 per cent during the quarter ended December 2020. However, the passing of the Assam Micro Finance Institutions (Regulation of Money Lending) Bill, 2020, has impacted collection in the state .

Collection efficiency in Assam, which was around 88 per cent in end-December, has dropped to around 78 per cent during the first 16 days of January. Overall collection efficiency during the first fortnight of January has also inched down to around 90 per cent (as against 92 per cent in end-December).

 

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Private banks report healthy deposit accretions, sluggish advances growth in Q3, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: Small and mid-sized private sector banks have reported a healthy deposit growth in the third quarter, even as they have struggled to grow their loan books, as per exchange filings by three lenders. Despite interest rates being the lowest in over a decade, the pandemic and the resultant economic impact has ensured that loan demand is very low and the system’s credit growth is stuttering at about 6 per cent.

Expending income on deposits which do not fetch income through lending is a cost on banks.

Microlender-turned-universal bank Bandhan Bank was the only one which showed a surge in loan book, which grew 23 per cent on an annual basis to Rs 80,255 crore, while in case of IndusInd Bank and IDFC First Bank, the growth has been marginal, separate exchange filings showed.

IndusInd Bank had seen a shrinking of the loan book in the nine months to September. It increased the loan book by over Rs 6,000 crore during the December quarter to end slightly above the year-ago period’s Rs 2.07 lakh crore, while IDFC First Bank’s book grew by over Rs 3,000 crore during the quarter ended December 2020.

However, from a deposits perspective — it was a dip in deposits during the Yes Bank crisis which led banks to disclose the performance ahead of the quarterly results — there has been growth across the three lenders.

Bandhan Bank reported a 30 per cent increase in deposits compared to the year-ago period, IDFC First Bank’s deposits grew 41 per cent and IndusInd Bank witnessed 11 per cent growth during the quarter.

The share of the low cost current and savings account (CASA) deposits as on December 31, 2020 for IndusInd Bank was at 40.5 per cent, almost at par with the year-ago period, while Bandhan Bank witnessed a healthy rise of 43 per cent.

IDFC First Bank said its retail deposits (including both CASA and term deposits) registered a growth of 100 per cent on a year-on-year basis.

The IDFC First Bank scrip gained 4.16 per cent, Bandhan Bank corrected by 1.46 per cent and IndusInd Bank ended the session almost flat on the BSE on Wednesday, as against a 0.54 per cent dip in the benchmark.



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Bandhan Bank signs agreement to provide banking services to Army personnel, BFSI News, ET BFSI

Banking & Finance

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Private lender Bandhan Bank on Tuesday said that it has signed an agreement with the Indian Army to provide banking services to the personnel of the force. The bank got the mandate to maintain zero-balance salary accounts of the Army personnel, the lender said in a statement.

They will be offered other preferential services such as six per cent interest on balance over Rs one lakh, unlimited free ATM transactions across ATMs, waiver of issuance and annual charge on Shaurya Visa Platinum Debit Card and unlimited free NEFT/RTGS/IMPS/DD transactions.

Bandhan Bank Shaurya Salary Account also offers protection for self and assets. This includes free personal accident insurance of Rs 30 lakh, air accident cover of Rs one crore and free educational benefit of up to Rs one lakh per year for four years to a dependent child in case of accidental death of the account holder, the statement said.

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