Bandhan Bank Q2 Results: Profit Slumps 88%; NII Declines 12%

Bandhan Bank Ltd. posted a slump in net profit for the second quarter of this financial year. The bank's standalone net profit during the quarter ended September fell 88% to Rs 112 crore, compared to Rs 937 crore in the year-ago period.

The net interest income—the difference of interest earned and interest paid— for the quarter declined 11.8% to Rs 2,589 crore. This compares to Rs 2,934 crore reported in the corresponding quarter of the previous fiscal.

Bandhan Bank's asset quality also improved during the quarter under review, with the gross non-performing assets ratio rising to 5.02% from 4.96% in the July-September period. In absolute terms, the gross NPA rose to Rs 7,015.13 crore from Rs 6,622.64 crore in the first quarter.

The net NPA ratio expanded 10 basis points to 1.37% from 1.36% in the preceding quarter. In absolute terms, the net NPA rose to Rs 1,843.55 crore from Rs 1,744.15 crore.

Gross advances 7.2% year-on-year to Rs 1.40 lakh crore, while total deposits rose 10.9% year-on-year to Rs 15.81 lakh crore. Retail deposits were also up 16% to Rs 1.12 lakh crore.

Wholesale bank represents 29.2% of the total loan book followed by housing and EEB group that represent 23.6% of the total loan book each.

The quarterly earnings were shared after market hours. The stock settled 1.68% lower at Rs 170.58 apiece on the NSE, compared to a 0.68% decline in the benchmark Nifty 50.

Bandhan Bank shares have fallen 3.93% in the last 12 months and risen 7.24% year-to-date.

Out of 28 analysts tracking the company, 16 maintain a 'buy' rating, 10 recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 193.31 implies an upside of 13.3%.