The banking sector continues to strive to overcome the aftereffects of the pandemic. Private sector lender Bandhan Bank’s Q2 financial performance was subdued. The bank, on Friday, reported a net loss of Rs.3,008.6 crores, PAT depreciating nearly 906.7% q-o-q from a profit of Rs.373.1 crores posted in Q1 FY22. On a yearly basis, the profit declined 427.1% y-o-y from Rs.920 crores in the same period last year. This comes on the back of the higher provisions undertaken due to a surge in bad loans.

Total income of the bank, during the quarter, however, rose 6% to Rs 2,427 crores, against the Rs 2,290 crores reported in the year-ago period. But on a sequential basis, it is down nearly 10.6%.

The bank’s asset quality was hampered during the quarter. The net NPA ratio of Bandhan Bank was at 3.04% versus 0.36% for the corresponding quarter last year. The Gross NPA ratio came at a worrying 10.8% against the 1.2% in the same quarter last year. The bank’s provisions rose multifold to Rs 5,578 crores in Q2 FY22. This compares dismally with Rs 380 crores Bandhan Bank reported in the year-ago quarter.

The company initiated a new vertical called Emerging Entrepreneurs Business (EBB). For this quarter under review, EEB portfolio was valued at Rs.34.9 bn and the non-EEB portfolio stood at Rs.2.68 bn.


  • Total income settled at a 6% rise at Rs.2,427 crores,
  • Net Interest Income (NII) for the quarter grew by 0.6% to ₹1,935.4 crore y-o-y.
  • Non-interest income grew nearly 34% y-o-y to ₹491.6 crore
  • Total Deposits climbed by 23.9% to ₹81,898.3 crore y-o-y vs ₹66,127.7 crore last year.
  • CASA ratio grew at 44.6% against 38.2% y-o-y.
  • Net NPAs stood at 3.04% vs 3.3% q-o-q.


  • Bandhan bank posted a loss of ~Rs.3000 crores against Rs.920 crores on a yearly basis.
  • Operating Profit for the quarter decreased by 3.9% q-o-q to ₹1,549.2 crore.
  • NII (Net Interest Income) fell at 7.6% yearly against 8.0%.
  • Gross NPAs came at ₹8,763.6 crore against ₹6,440.4 crore quarterly.

In the news

  • Bandhan bank to provide banking services to the Indian Army.
  • The company inks agreement with the Government of Assam to regularise stressed borrowers and borrowings.
  • Bandhan Bank’s collection efficiency nears pre-pandemic levels.

Management comments

According to Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank, during the quarter the bank had seen a substantial recovery in collections with COVID-19 second wave subsiding.

He also emphasised on how Bandhan bank recognized the stress pool. The bank has proactively taken additional requisite provisions to meet any contingency requirements and to do business on a clean slate.

The bank looks forward to concentrating on fresh business growth and to achieving its long-term goals. The has envisaged diversifying their portfolio – in terms of products and geographies. For this, the work is already in progress and results can be expected in the coming years.

Other things to watch out for

Bandhan Bank established in 2001 officially began its operations as a bank on August 23, 2015. The bank that began with 2,523 outlets, today has spread to 34 states and union territories in India with 5,618 outlets, serving 2.43 crore customers.

The company has a market cap of about Rs.48,000 crores. FIIs and Promoters command majority shares. Its dividend yield has been recorded at 0.34%. ROE and ROCE stand at 13.5% and 7.87% respectively.