Bandhan Bank Q3 FY22 Results

Bandhan Bank released its quarterly earnings report for Q3 FY22 on January 21, 2022. 

The company reported consolidated profit after tax (PAT) up 35.7% year-on-year (YoY) at Rs 859 crore from Rs 632.6 crore in Q3 FY21. This showed a huge jump from the net loss of Rs 3010 crore in the previous quarter, incurred on account of extra provisioning to cover for spike in bad loans. The operating profit also grew by 1.4% to Rs 1,950.1 crore in the third quarter from Rs 1,923.1 crore during Q3 FY21. 

As per the company’s filings with NSE, Net Interest Income (NII) for the quarter stood at Rs 2,124.7 crore in the quarter under review as against Rs 2,071.7 crore in Q3 FY21, showing a growth of 2.6% YoY. The Net Interest Margin (NIM) slipped to 7.8% against 8.3% recorded in the same quarter of the previous year, however, is a marginal improvement over the 7.6% recorded in Q2 FY22.  The non-interest income grew to Rs 712.3 crore, an increase of 26.7% in Q3 FY22 as against Rs 562.3 crore in the corresponding quarter of the previous year.

The loan portfolio of the universal bank grew 9.6% YoY. Total Deposits increased to Rs 84,499.8 crore. It indicated an increment of 18.7% when compared to deposits of Rs 71,188.3 crore in the same quarter of the previous year. Moreover, Current Account Savings Account (CASA) grew 26.2% YoY, increasing the CASA ratio to 45.6% as compared to 42.9% in Q3 FY21. 

However, the total expenditure during the quarter increased, both YoY and quarter on quarter (QoQ). It stood at Rs 2,17,080.25 lakh, as compared to Rs 2,12,328.63 lakh in Q2 FY21 and Rs 1,94,698.37 lakh during Q3 of the previous year. This can be attributed to an increase in operating expenses, most of which were a result of increased employee costs. 

As for the Non-Performing Assets, the GNPAs at the end of Q3 were Rs. 9,441.6 crore, which were 10.81% as compared to 10.82% in the previous quarter. However, the Net NPAs increased from Rs. 2,265.8 crore in Q2 FY21 to Rs 2,413.1 crore in Q3 FY22.

In Q3 FY22, the banking company showed an improvement in PCR at 74.4% from 74.1% in the previous quarter, despite a technical write off of Rs 1,200 crore during the quarter. Moreover, there was no restructuring done during Q3 FY22.

Hits

• Loan portfolio (on book + off book + TLTRO + PTC) grew 9.6% YoY.  
• Deposits grew 18.7% YoY.  
• Operating Profit for the quarter increased by 1.4% YoY.
• ROA & ROE (annualised) for Q3 FY 22 stands at 2.8% and 22.2% respectively.
• CASA grew 26.2% YoY. The CASA ratio was 45.6% against 42.9% YoY 
• Net Interest Income (NII) for the quarter grew by 2.6% as compared to the corresponding quarter of the previous year. 
• NIM stood at 7.8%, which increased only slightly from 7.6% during the previous quarter. 
• Non-interest income grew by 26.7% as compared to the corresponding quarter of the previous year.