Bandhan net profit falls 32%
Bandhan Bank on Wednesday reported a 31.59 per cent drop in net profit for the first quarter ended June 30, 2020. A provision of Rs 750 crore during the quarter against a potential impact of Covid-19 had pulled down the bottomline of the bank.
Net profit at the end of the quarter was Rs 550 crore against Rs 804 crore in the corresponding quarter of the previous year.
The bank said in a statement that during the quarter it had taken an “accelerated additional provision” on standard advances amounting to Rs 750 crore. With this and the additional standard asset provision for the micro banking portfolio, the total additional provision in its books stands at Rs 1,769 crore.
The net interest income for the quarter grew 14.98 per cent to Rs 1,811 crore against Rs 1,575 crore in the corresponding quarter of the previous year.
“We have started collections post unlocking announced by the government. Overall bank collections improved to 76 per cent by the end of June 2020 compared with 29 per cent in April 2020. We continued to showcase the strengths of our retail deposit franchise with strong growth of 35 per cent during this difficult time,” said Bandhan Bank MD and CEO Chandra Shekhar Ghosh.
Federal Bank’s net profit rose 4.3 per cent to Rs 400.77 crore during the quarter ended June 30, 2021, from Rs 384.21 crore in the year-ago period.
Net interest income grew 12.33 per cent on a year-on -year basis to Rs 1,296.44 crore from Rs 1,154.18 crore as on June 30, 2020.