Bandhan Bank Q2 results: Standalone loss of Rs 3,008 cr; NII grows 0.6 pc

The bank had posted a profit of Rs 920 crore in the same quarter last year.

Net interest income (NII), the difference between interest earned and interest expended, grew by 0.6 percent YoY to Rs 1,935.4 crore in Q2FY22.

There was 6.6 percent growth in loan book and contraction in net interest margin.

With respect to advances, the bank saw 6.6 percent growth over the corresponding quarter of the previous year. The total advances are now at Rs 81,661 crore.

During the second quarter of the current financial year, the Bank’s deposit book grew 24 percent over the corresponding quarter of the previous year. The total deposits now stand at Rs 81,898 crore.

Net interest margin reduced to 7.6 percent in the quarter, compared to 8 percent in the year-ago quarter and 8.5 percent in the June 2021 quarter, the bank added.

Gross non-performing assets (NPA) as a percentage of gross advances at 10.8 percent as of September 2021.

It grew sharply compared to 8.2 percent in the previous quarter.

However, NPAs dropped to 3 percent against 3.3 percent on a sequential basis.

The bank reported provisions and contingencies at Rs 5,577.91 crore in Q2FY22, which increased sharply against Rs 1,442.02 crore in Q1FY22 and Rs 379.59 crore in Q2FY21.

"The bank has made accelerated provision on NPA accounts of Rs 1,500 crore resulting in provision coverage ratio of 74 percent as against 62 percent in Q1FY22," said Bandhan Bank.

Further, the bank has also made additional standard assets provision of Rs 2,100 crore and provision on restructured assets amounting to Rs 1,030 crore amounting to a total of Rs 4,630 crore, it added.

During the quarter, non-interest income rose by 34 percent to Rs 491.6 crore, but operating profit slumped by 3.9 percent to Rs 1,549.2 crore in comparison to the same quarter of the previous year.