- 31 Oct 2022
- ICICIdirect Research
BANDHAN BANK REPORTS WEAK SET OF NUMBERS
BANDHANBNK - 175 Change: 0.90 (0.52 %)News:
Bandhan Bank has reported a weak set of numbers. NII was up 13.3% YoY and declined 12.8% QoQ to Rs2193 crore, mainly due to fall in margins. NIMs declined by 100 bps QoQ to 7.0% as yields declined and rise in cost of funds by 20 bps. Other income was down 9.6% YoY but jumped by 44.5% QoQ. Opex increased 35.5% YoY and 15.8% QoQ and as a result C/I ratio jumped from 36% to ~42% QoQ. Sequentially provisions doubled to Rs 1279 crore, thus net profit for the bank was down 76.4% QoQ to Rs 209.3 crore. Asset quality improved as GNPA and NNPA ratio declined by 6 bps each on QoQ basis to 7.19% and 1.86% respectively. Business growth showed healthy momentum on yearly basis as loans (gross) were up 17.4% YoY to Rs 95830 crore, but sequentially loans were flat. Deposits were up 21.3% YoY and 6.8% QoQ to Rs99366 crore, wherein CASA was up 10.9% YoY
View:
Balance sheet restructuring in progress, however, operationally weak performance and uncertainty on stressed pool remains an overhang
Impact:
Negative