Bandhan Bank Ltd. reported a net loss for the quarter ended September, owing to higher provisions.
The bank reported a net loss of Rs 3,008.6 crore in the three months through September compared with a net profit of Rs 920 crore during the same period a year ago. That came as provisions for the quarter stood at Rs 5,578 crore compared with Rs 380 crore a year ago.
Net interest income, or the bank’s core income, rose 0.6% year-on-year to Rs 1,935 crore. Other income rose 34% over the preceding year to Rs 492 crore.
The bank’s asset quality worsened, with gross non-performing asset ratio at 10.82% compared with 8.18% as of June. Net NPA ratio stood at 3.04%, as compared with 3.29% in the first quarter.
During the quarter, the bank made accelerated NPA provisions of Rs 1,500 crore resulting in provision coverage ratio of 74% against 62% as of June 30, the bank said.
“We have recognised the stress pool and proactively taken additional requisite provisions such as to meet any contingency requirements and to look forward to do business on a clean slate,” CS Ghosh, managing director and chief executive officer of Bandhan Bank, was quoted as saying in a statement. “This has resulted in loss for the quarter.”
“However, it will help us to concentrate on fresh business growth and to concentrate towards achieving our long term goals with renewed energy,” he said.
Total advances rose 6.6% year-on-year to Rs 81,661 crore. Total deposits rose 24% from the preceding year to Rs 81,898 crore.