Results: Bandhan Bank's net profit down by 29% in FY 2021; board recommends dividend of Re 1 per share

05:02 PM May 08, 2021 | FPJ Web Desk

Kolkata-based Bandhan Bank reported a decline in their net profit by 27.06 per cent. In FY 2021, the net profit was at Rs 2,205.45 crore, from Rs 3,023.73 crore in FY 2020. In addition, the gross NPAs as on March 31, 2021 is at Rs 5,757.8 crore (6.8 per cent) against Rs 5,515 crore (7.1 per cent) proforma Gross NPA as on December 31, 2020, the company stated in its filing.

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The Bank holds accelerated provisions of Rs 387.96 crore on standard assets as at March 31, 2021 against the potential impact of COVID-19 (other than provisions held for restructuring under COVID 19 norms), the company said in its filing.

In Q4 2021, the bank’s net profit was down by 80.08 per cent at Rs Rs 103.03 crore, from Rs 517.28 crore in Q4 FY 2020.

Further, during the current quarter the Bank has made additional provisions on NPA amounting to Rs l,034 crore against the existing NPA accounts resulting from elevated risk observed In certain geographies and potential impact of COVID-19 on certain loan portfolios.

The lender’s total income was at Rs 14,633.27 crore in FY 2021, an increase of 17.68 per cent, from Rs 12,434.69 crore in FY 2020. Meanwhile, the Net Interest Income (NII) for the current year grew by 19.6 per cent to Rs 7,563.4 crore as against Rs 6,323.9 crore in the previous year. Non-interest income grew by 36.1 per cent to Rs 2,109.1 crore for the year ended March 31, 2021 against Rs 1,549.2 crore in the previous year ended March 31, 2020.

The operating profit for the year increased by 25.9 per cent to Rs 6,855.3 crore against Rs 5,446.6 crore in the previous year. Net Interest Margin (annualised) for the year ended March 31, 2021 stood at 7.8 per cent against 8.1 per cent in March 31, 2020.

The total advances (on book off book TLTRO) grew by 21.2 per cent to Rs 87,042.9 crore as on March 31, 2021 against Rs 71,846.0 crore as on March 31, 2020. The bank;s total deposits increased by 36.6 per cent to Rs 77,972.2 crore as on March 31, 2021 as compared to Rs 57,081.5 crore as on March 31, 2020

The company’s net NPAs as on March 31, 2021 stood at Rs 2,861 crore, as against Rs 389.39 crore in FY 2020.

In addition, the board has also recommended a dividend of Re. 1 (one) each equity share having a face value of Rs 10 each from the profits of the Bank for the financial year ended March 31, 2021, the company said in its filing.

Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said, “A very challenging year ended on a positive note with growth and collection coming back to normalcy. With accelerated provisioning and write off, we are now well placed as we enter FY 22. We remain cautious but confident as we deal with the COVID 19 second wave. We remain committed to our strategy that we have presented in the last quarter of granular, diversified and quality growth.”

The bank’s outlets as on March 31, 2021, stood at 5,310. The network consists of 1,147 branches, 4,163 banking units as against 1,018 branches and 3,541 banking units as on March 31, 2020. Total number of ATMs stood at 487 as on March 31, 2021 against 485 as on March 31, 2020. During the quarter, the number of employees of the bank has gone up from 47,260 to 49,445.

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