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Bandhan Bank Q1 profit jumps 35 percent
Economic Times··21 Jul
Bandhan Bank reported a 35 percent rise in first-quarter net profit to Rs 502 crore on Tuesday, helped by lower provisions at Rs 683 crore. Operating profit fell 19 percent to Rs 1358 crore as staff and technology costs rose. Gross NPAs improved to 3.15 percent and advances grew 16 percent to Rs 1.56 lakh crore.
Prism
What It Means For You
- If you hold Bandhan Bank shares, lower bad-loan provisions drove profit even as operating costs climbed.
- A cleaner NPA ratio at 3.15 percent signals fewer stressed loans on the books than a year ago.
- Deposit growth lagging credit may affect future lending rates and branch product pricing.
What's Happening
- Bandhan Bank posted Q1 net profit of Rs 502 crore, up 35 percent year on year.
- Provisions fell 41 percent while operating profit dropped 19 percent on higher staff and tech spend.
- Gross advances rose 16 percent to Rs 1.56 lakh crore as retail and wholesale books expanded.
Provisions Versus Operating Costs
- Indian banks often show profit jumps when credit costs fall even if core earnings soften.
- Bandhan shed Rs 7,000 crore in bulk deposits while seeking institutional borrowings to fund loan growth.
- Treasury income fell 90 percent to Rs 24 crore, limiting total income growth to 0.5 percent.
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