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The Kolkata-based public bank reported a 290% YoY jump in profits as the profit for the quarter ended in March 2022 stood at Rs 312 crores against Rs 80 crores reported in the corresponding quarter last year.
Net Interest Income for the quarter came in at Rs 1,652.3 crores, up 16.9% YoY. However, total income for the quarter declined marginally to Rs 4,362 crores and other income fell 18.1% to Rs 589 crores since the bank had to book a mark-to-mark loss of Rs 200 crores during the quarter. The operating profit of the bank declined 5% to Rs 950 crores. Provisioning for the quarter fell to Rs 466 crores from Rs 982 crores.
Bandhan bank Q4 results, read more.
For the period of 12 months ended on 31st March 2022, the bank posted net profit growth of over 5 times as profit improved from Rs 167 crores last year to Rs 930 crores this year. Total income grew marginally to Rs 18,082 crores as the bank managed to bring down its gross and net NPAs to 7.89% and 2.7% respectively.
The bank's net interest income for the year increased to Rs 6,472.95 crores, reporting a growth of 18.1% You growth, registering the bank's highest net interest income ever. The bank's advances improved 9.6% YoY to Rs 1.3 lakh crore as the provision coverage ratio of the bank improved to 91.44%.
Last year in September, the bank was removed from the Prompt Corrective Action (PCA) framework of RBI after being under it for 4 years after it was discovered that the bank was not in violation of any regulation. The PCA framework is triggered when a bank breaches certain regulatory thresholds in bad loans and capital adequacy. Now, the bank is looking to expand and open 200 new branches as well as target a loan growth of 15%.
The Board of the bank is said to be considering a final dividend for FY22 before its AGM. The share of the bank appears to be in a downtrend as it recently touched a low of Rs 10.90 per share. Friday seemed to be a good day for the stock as it witnessed a full gap-up opening and climbed 4.52% to close at a price of Rs 11.55 per share, registering a 12.5% decline in value since the beginning of 2022.
Article by Aman Agarwal.
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