Bandhan Bank Q3 Profit Dips 42% to Rs 426 Cr

Kolkata, Jan 31 (PTI) Private lender Bandhan Bank on Friday reported a 42 per cent decline in its net profit for the third quarter of the current financial year at Rs 426 crore as compared to Rs 733 crore in the year-ago period.

Lender's MD and CEO Partha Pratim Sengupta said that the drop in net profit was primarily due to a change in accounting procedure and an additional provision of Rs 336 crore for loans, which turned bad, during the October-December quarter.

He said accounting for the Employee Stock Option Scheme (ESOP) also impacted the net profit to the tune of Rs 166 crore.

Sengupta told reporters that the bank has drawn up a strategy for its next phase of growth.

He said the strategy is "to be more secular in its approach as a large contribution is coming from the microfinance sector which is facing challenges. More stress will be given on liability products and digital banking".

The bank's net revenue during the third quarter of the current fiscal stood at Rs 3,926 crore as compared to Rs 3,071 crore in the corresponding quarter last year.

The operating profit of the bank stood at Rs 2,021 crore during the quarter under review as against Rs 1,655 crore in the year-ago period.

The collection efficiency ratio for microfinance loans was marginally lower at 97.4 per cent during the October-December quarter.

Deposits of the bank at the end of the third quarter stood at Rs 1.41 lakh crore and advances at Rs 1.32 lakh crore.

The capital adequacy ratio of the bank at the end of the December quarter stood lower at 16.1 per cent as against 19.8 per cent in the previous corresponding period.

The gross NPA of the bank declined by 24.1 per cent and net NPA by 32.9 per cent.