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Bandhan Bank’s Q4 Profit Drops by 94% due to Increased Provisions and Loan Write-Offs

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6 months ago

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Bandhan Bank released its Q4FY24 financial results, showing a 94% decrease in net profit to ₹54.6 crore, a substantial drop from the previous year’s ₹808.3 crore. The decline was attributed to escalated provisions and a significant loan write-off. The Kolkata-based bank registered a rise in net interest income (NII) by 16%, reaching ₹2,866 crore compared to ₹2,471 crore in the same quarter a year ago.

The board of Bandhan Bank suggested a dividend of 15% at ₹1.50 per equity share for FY24. The bank reported provisions and contingencies amounting to ₹1,774.3 crore as a strategic step towards managing their loan portfolio efficiently.

Chandra Shekhar Ghosh, the bank’s Managing Director and CEO, mentioned that a technical write-off of ₹3,852 crore was part of their old 2019-2022 portfolio. The gross NPA ratio in the quarter was noted at 3.8% compared to the previous year’s 4.9%. The net NPA stood at 1.1% versus 1.2% in March 2023.

Bandhan Bank saw its net revenue climb to ₹3,560 crore in Q4FY24 from the previous year’s ₹3,101 crore. Deposits grew by 25% year-on-year, with total deposits reaching ₹1.35 trillion and total advances at ₹1.25 trillion. As of now, the search for the bank’s next MD and CEO is still in progress following Ghosh’s upcoming retirement on July 9.

For FY24, Bandhan Bank’s net revenue was ₹12,490 crore compared to ₹11,728 crore in FY23, with profits after tax amounting to ₹2,229 crore. Additionally, Ghosh mentioned the ongoing audit of the bank’s CGFMU claims, anticipating its timely conclusion to align with strategic plans.

Rachel Adams

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