Covid related provisions have eroded the bottomline of Bandhan Bank for the December quarter of 2020. The private bank posted a net profit of Rs 632.6 crore, down 13.5 per cent from a year ago.
The bank has made an additional provision of Rs 1,000 crore on standard advances during the quarter for Covid-19. With additional standard asset provisions that the bank is carrying out in its micro banking portfolio, total additional provision in its books stands at Rs 3,119 crore.
Net interest income of the lender grew 34.5 per cent year-on-year to Rs 2,071.7 crore from Rs 1,540 crore a year ago.
Non-interest income grew 55 per cent to Rs 553 crore, taking the total income of the lender to Rs 2,625 crore, up 38.3 per cent over the previous year. Net interest margin of the lender was up 4 basis points year-on-year to 8.3 per cent.
“With the fourth quarter historically being the best for us every financial year, we now look forward to similar a performance in last quarter,” said Chandra Shekhar Ghosh, managing director and CEO of Bandhan Bank.
Reported gross non-performing assets (NPAs) was 1.1 per cent and net NPAs at 0.3 per cent
Federal Bank
Federal Bank’s third-quarter net profit declined 8.2 per cent to Rs 404.10 crore, mainly due to higher provisioning for bad loans. The private sector lender had registered a profit of Rs 440.64 crore in the year-ago period.
Total income, however, improved to Rs 3,941.36 crore during the third quarter from Rs 3,738.22 crore a year ago, Federal Bank said.
