Bandhan Bank on Friday reported a net profit of Rs 209.3 crore for the quarter ended September 30. The net loss of the bank during the corresponding previous quarter was Rs 3,008.6 crore.

On a sequential basis, however, the bank’s net profit has come down by 76.4 per cent from Rs 886.5 crore during the April-June quarter of 2022-23.

The net interest income of the bank during Q2FY23 was Rs 2,193 crore, up 13.3 per cent over the corresponding previous period. Gross NPA ratio was at 7.19 per cent during the quarter, showing an improvement from 10.82 per cent in the corresponding previous period.

The bank has written off around Rs 3,500 crore, mostly in the microcredit segment, during the quarter. The net interest margin of the bank has come down to 7 per cent from 7.6 per cent a year ago.

“The NIM is slightly lower than the comfort range of 7.5- 8.5 per cent. This is largely on account of one-off interest reversal during the quarter because of NPA,” said Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank.

The bank has also seen a dip in CASA ratio to 40.8 per cent from 44.6 per cent reflecting a shift in consumer preference from savings to fixed deposits due to increasing interest rates.

Total advances grew 17.4per cent as on September 30 with higher growth in the non-microfinance segment.“When we look at the loan book growth, other than microcredit, we have seen a growth of 52 per cent. This is in line with the bank’s portfolio diversification agenda,” Ghosh said.

“As we enter H2FY23, the focus shifts to growth and with pandemic-related stress chasing out, we look forward to ending FY23 on a high note,” he said.

Bandhan Bank scrips were down 2.12 per cent on Friday over the previous close on the BSE.