Bandhan Bank’s net profit jumps 17-fold

Bandhan Bank
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Bandhan Bank’s net profit for the 2022-23 fiscal jumped more than 17 times to Rs 2,194.63 crore as compared to Rs 126 crore in the previous year, even though it reported a 57.5 per cent dip in the fourth quarter. The total advances of the bank stood at Rs 1,09,122 crore at the end of last fiscal, up by 10 per cent from Rs 99,338 crore as on March 31, 2022.

The bank’s total deposits at the end of the 2022-23 financial year increased 12 per cent to Rs 1,08,069 crore as against Rs 96,331 crore at the previous fiscal end. The lender, however, posted a 57.5 per cent fall in its net profit to Rs 808 crore in the fourth quarter of the 2022-23 fiscal from Rs 1,902 crore in the year-ago period.

Bandhan Bank Chandra Shekhar Ghosh said, “The year-on-year fall in net profit is due to continuous rise in provision coverage ratio (PCR) since the time the bank posted a loss in the second quarter of the 2022-23 fiscal.” While PCR was 75.5 per cent by the end of the fourth quarter of FY’22, it stood at 76.8 per cent as on March 31, 2023. Ghosh said, that “the bank’s performance was good and credit quality has been brought under control. For the ongoing fiscal, volatility is over and we are expecting strong business growth”. The quarter showed “better growth in retail, housing, two-wheeler and gold loans”, he said, adding that decent growth was also noticed in the SME and NBFC lending space. According to him, 40 per cent of the advances are secured, while the target is to take it to 50 per cent by 2026.

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