- 25 Jul 2022
- ICICIdirect Research
Bandhan Bank posted Q1FY23 numbersBANDHANBNK - 196 Change: 5.85 (3.08 %)
News: Bandhan Bank had mixed Q1FY23 partly due to seasonality and due to heavy floods in Assam. NII was up 18.9% YoY to Rs 2514 crore, mainly driven by healthy yearly credit growth of 20.3%. NIMs declined by 70 bps QoQ to 8.0% as yields declined due to reversals, increasing secured book in housing segment and rise in 20 bps in cost of funds to 5.3%. Other income was down 45% YoY to Rs 330 crore, mainly due to fall in treasury as interest rate harden and muted sale of PSLC. Provisions jumped from Rs 4.7 crore to Rs 642 crore QoQ as a result PAT was down 53.4% QoQ to Rs 886.5 crore. Asset quality weakened as GNPA and NNPA ratio increased by 79 bps and 26 bps QoQ to 7.25% and 1.92% respectively. Slippages came in mostly due to lower collections from state of Assam due to flood. Business growth showed healthy momentum on yearly basis as loans were up 20.3% YoY to Rs 96650 crore. Deposits were up 20.3% YoY and down 3.4% QoQ to Rs 93057 crore, wherein CASA was up 21.1% YoY and CASA ratio stood at 43.2% versus 41.6% QoQ.
Views: Operating metrics have improved, recoveries from restructured pool to trigger earning & price momentum. Asset quality weakness was marginally negative.