Private sector lender Bandhan Bank reported a 20.6% drop in net profit to ₹517 crore for the quarter ended March 31 due to COVID-19 related provisions.
In Q4, the lender made ₹690 crore additional provisions for standard assets on account of COVID-19.
“This provision is higher than the RBI minimum required provision. With this provision and additional standard assets provision that the bank is carrying in the micro-banking portfolio, total additional provision in books stands at ₹1,000 crore,” the Kolkata-based bank said in a statement. Other provisions for the quarter came to ₹138 crore compared with ₹154 crore of the same period of the previous year.
Net interest income (NII) for the quarter grew 33.57% to ₹1,680 crore, while non-interest income rose 28.87% to ₹500 crore during the period.
As Gruh Finance was merged with the bank in October, the figures for the current quarter are not exactly comparable with those of the corresponding quarter of the previous year.
Gross NPAs as on March 31, 2020 were 1.48% of gross advances compared with 2.04% a year ago and 1.93% on December 31, 2019.
Net NPAs as on March 31, 2020 at 0.58% against 0.81% December 31, 2019 and 0.58% as on March 31, 2019.
Total advances grew by 60.46% to ₹71,846 crore as on March 31, 2020, while total deposits increased by 32.04% to ₹57,802 crore.
“During the quarter, the bank has showcased the strengths of its deposit franchise with continuously growing deposits in all the segments.
The bank has made an additional COVID-19 related provision on standard advances amounting to ₹690 crore,” Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank said.
