Bandhan Bank Q1 Results: Profit Jumps 35% As Provisions Slip, Asset Quality Improves

Bandhan Bank Ltd. reported a 35% year-on-year jump in net profit for the quarter ended June, aided by lower provisioning even as net interest income posted a modest increase. According to the bank's stock exchange filing, Bandhan Bank Ltd. reported a 34.9% year-on-year jump in net profit for the quarter ended June.

The private lender's standalone net profit rose to Rs 502 crore in the first quarter from Rs 372 crore a year earlier, according to its regulatory filing.

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Net interest income, a key measure of lending performance, rose 6% year-on-year to Rs 2,921 crore, up from Rs 2,758 crore a year earlier. The bank's net interest margin remained unchanged at 6.2% on a sequential basis, indicating stable lending profitability despite a changing interest-rate environment.

Bandhan Bank's asset quality strengthened during the quarter. Gross non-performing assets (GNPA) improved to 3.15% from 3.27% in the March quarter, while net non-performing assets (NNPA) eased to 0.93% from 0.97% over the same period.

A key driver of earnings was lower provisioning. The bank set aside Rs 683 crore during the quarter, significantly lower than Rs 1,147 crore in the year-ago period, though broadly unchanged from Rs 677 crore in the preceding quarter.

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Separately, Bandhan Bank said it has appointed Vinay Jain as its interim Chief Financial Officer, effective Sept. 26, according to the exchange filing.

The results suggest the lender benefited from lower credit costs while maintaining stable core profitability and improving asset quality during the quarter.

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