Bandhan Bank on Friday reported an 18.7 per cent drop in net profit for the quarter ended June 30.

Net profit during the quarter was Rs 721 crore compared with Rs 887 crore a year ago. Factors such as seasonality affecting advances coupled with rising operating expenses have impacted the bottomline.

Net interest income during the quarter was Rs 2,491 crore compared with Rs 2,514 crore a year ago.

Operating expenses during the quarter stood at Rs 1,313 crore compared with Rs 1,023 crore in Q1FY23, with the increase primarily on account of branch expansion.

Gross non performing assets during the quarter were at 6.76 per cent compared with 7.25 per cent in Q1FY23. While there was a year-on-year decline, GNPA has increased from 4.81 per cent in Q4FY23.

The bank said that following RBI’s notification on income recognition and asset classification in April, the advances guaranteed under NCGTC schemes/funds (National Credit Guarantee Trustee Company Ltd) are required to be classified as non-performing advances as they become NPA.While banks are required to make any provisions on these advances to the extent they are covered under NCGTC guarantee schemes/fund, however Bandhan Bank officials said that adequate provisions have been made by the bank.

Net interest margin during the quarter was at 7.3 per cent compared with 8 per cent in Q1FY23 and 7.3 per cent in Q4FY23.

The bank’s MD and CEO Chandra Shekhar Ghosh said: “The bank has made significant progress in diversifying its asset book. Our investment in people, technology, IT & expansion will surely improve performance.”

Credit card

The bank is exploring the scope to introduce its own credit card later this year. The bank had earlier partnered Standard Chartered Bank for co-branded credit cards.