Bandhan Bank Q4 Results:
Bandhan Bank reported its January-March quarter results for fiscal year 2023-24 (Q4FY24) on Friday, May 17, revealing a 94% drop in net profit to ₹54.6 crore from ₹808.3 crore in the same period last year. This significant decline was due to increased provisions and write-offs of bad loans during the quarter.
The bank’s net interest income (NII), which is the difference between interest earned and interest expended, rose 16% in the fourth quarter of FY24 to ₹2,866 crore, compared to ₹2,471 crore in the previous year. Bandhan Bank’s board recommended a 15% dividend at ₹1.50 per equity share for FY24.
“The board has recommended a dividend of ₹1.50 per equity share with a face value of ₹10 each (15%) from the bank’s profits for the fiscal year ending March 31, 2024, pending shareholder approval at the upcoming Annual General Meeting (AGM),” stated Bandhan Bank in a regulatory filing.
“The dividend on equity shares will be paid/dispatched after shareholder approval at the AGM,” the private lender added.
Bandhan Bank’s provisions and contingencies surged to ₹1,774 crore from ₹735 crore in the previous year. The bank also wrote off bad loans amounting to ₹3,850 crore in the January-March period, compared to none in the past four quarters. These loans were given to small borrowers during the pandemic and were covered by a government guarantee.
However, the bank noted that these loans are being examined by the National Credit Guarantee Trustee Company, a government agency, which might delay the payout of the government guarantee. The bank described the write-offs as a “prudent measure.” The bank’s loans grew by 14.3%, while deposits increased by 25%.
Bandhan Bank’s gross non-performing asset (GNPA) ratio, a key indicator of asset quality, improved to 3.84% as of March-end from 7.02% at the end of the previous three months due to the write-offs. The lender is also set for a management transition as Managing Director and Chief Executive Chandra Shekhar Ghosh announced he would retire on July 9 after nearly a decade in leadership.
