Bandhan Bank Q2 net up 47% to Rs 4.8 bn; net interest income rises 55.6%
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Bandhan Bank Q2 net up 47% to Rs 4.8 bn; net interest income rises 55.6%

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Bandhan Bank’s net profit for the second quarter ended September 2018 (Q2FY19) rose 47.4 per cent to Rs 4.88 billion on robust growth in net interest income.

The Kolkata-based private lender had posted a net profit of Rs 3.31 billion in the July-September 2017 quarter (Q2FY18). The net interest income rose 55.6 per cent to Rs 10.78 billion in Q2FY19 from Rs 6.93 billion in Q2FY18. The bank improved its net interest margin (NIM) to 10.3 per cent in Q2FY19 against 9.3 per cent in Q2FY18.

Chandrasekhar Ghosh, the bank’s managing director and chief executive officer, said healthy NIM reflects about 51 per cent growth in loan book. The control on asset quality also benefitted the bank.

Its loans book rose to Rs 333.7 billion in September 2018 from Rs 221.1 billion in September 2017. Deposits rose by 29.6 per cent to Rs 329.6 billion in September 2018. The share of low-cost deposits (savings account and current account) went up to 36.9 per cent in September 2018 from 28.2 per cent a year ago.

The non-interest income rose marginally by 3.1 per cent to Rs 2.3 billion in Q2FY19 from Rs 2.23 billion in Q2FY18.

Its capital adequacy ratio stood at 32.6 per cent at the end of September 2018.

Referring to the issue of reducing promoter holding in the bank, Ghosh said the bank will submit strategic plan to the Reserve Bank of India (RBI). Bandhan Bank will keep in mind the interest of all ...

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