Bandhan Bank Ltd.'s quarterly profit beat analysts' expectations, led by lower provisions and strong deposit growth.
The lender's provisions for the quarter ended June 30 fell 18.3 percent sequentially to Rs 125 crore. Deposits grew 42.34 percent year-on-year to Rs 43,701 crore.
Bandhan Bank witnessed a “very good” deposit growth in June quarter, its Managing Director and Chief Executive Officer Chandra Shekhar Ghosh told BloombergQuint in a post-earnings conversation. This growth can be attributed to the bank's strong presence in the rural and semi-urban areas, Ghosh said.
Ghosh said the bank has fully provided for its exposure in Infrastructure Leasing & Financial Services in the March quarter. The lender's gross non-performing assets declined to 2.02 percent from 2.04 percent in the previous quarter. Excluding its IL&FS exposure, the gross NPAs stood at 1.1 percent, he said.
Bandhan Bank Q1 Results 2019-20: Highlights
- Net interest income grew 26 percent year-on-year to Rs 1,410.4 crore.
- Profit after tax jumped 46 percent over last year to Rs 701 crore.
- Net NPAs stood at 0.56 percent compared with 0.58 percent in the March quarter.
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