Bandhan Bank posts whopping Rs 3,009-crore loss in Q2 as bad loans surge

During the play nether review, the slope made an accelerated proviso connected NPA accounts of astir Rs 1,500 crore. It besides provided an further modular assets proviso amounting to Rs 2,100 crore and proviso connected restructured assets amounting to Rs 1,030 crore.

Private assemblage lender Bandhan Bank connected Friday reported a whopping nett nonaccomplishment of Rs 3,008.59 crore for the 2nd 4th this fiscal, connected the backmost of Rs 5,577.92-crore provisions arsenic the lender saw a immense surge successful atrocious loans.

In implicit terms, non-performing assets (NPAs) of the bank, which had posted a nett net of Rs 920 crore successful the 2nd 4th past fiscal, soared 10-fold year-on-year to Rs 8,763.60 crore successful the 2nd 4th this fiscal from Rs 873.97 crore successful the year-ago period. On a quarter-on-quarter basis, NPAs grew 36% from Rs 6,440.38 crore successful the archetypal quarter.

During the play nether review, the slope made an accelerated proviso connected NPA accounts of astir Rs 1,500 crore. It besides provided an further modular assets proviso amounting to Rs 2,100 crore and proviso connected restructured assets amounting to Rs 1,030 crore.

Addressing a virtual property meet, Bandhan Bank MD & CEO Chandra Shekhar Ghosh said, “It was a precise captious quarter. But not conscionable for us, everyone is undergoing the same. We recognised this world and fortify our equilibrium expanse to beryllium prepared for the aboriginal business. All stresses are assessed and finalised successful this moment. And then, the slope made a one-time further provision. This 4th full provisioning was Rs 5,578 crore. Due to specified provisioning, the slope has reported a nonaccomplishment of astir Rs 3,000 crore successful this quarter…it is not a loss, it is similar taking immoderate interruption comfortably, truthful that from today, we tin lone absorption connected concern maturation and prime of the portfolio.”

Ghosh said the slope believed that this provisioning should beryllium “sufficient” to instrumentality attraction of immoderate erstwhile plus prime issues connected relationship of the ongoing pandemic arsenic good arsenic support it against the disruptions caused by immoderate imaginable 3rd wave.

During the 2nd 4th this fiscal, the bank’s gross NPAs arsenic a percent of full loans accrued 964 ground points connected year-on-year ground to 10.82% from 1.18% during the aforesaid 4th past fiscal. On a quarter-on-quarter basis, the gross NPA ratio soared 264 bps from 8.18% successful Q1FY22.

Net involvement income (NII) for the 4th stood astatine Rs 1,935.41 crore, against Rs 1,923.09 crore successful the year-ago period. Net involvement borderline (NIM) stood astatine 7.6%, down 4 bps from 8% for Q2FY21.

Ghosh informed that postulation efficiencies improved successful the September 4th and recognition maturation came backmost to astir the pre-Covid situation. Growth successful indebtedness and advances for the slope successful this 4th was 7%.

“For the EEB conception (erstwhile microbanking segment), postulation ratio was 83% successful June, and present it is 129%, which is simply a precise beardown connection to the slope from the customers connected however they are coming backmost to the pre-pandemic situation. In the EEB segment, astir 9% of our customers had not paid immoderate instalment successful June, portion successful September this fig was lone 4%. Now, astir 79% of our customers are paying afloat instalments, portion the fig was 62% successful June. September onward, it volition gradually improve. We anticipation that successful the aboriginal it volition beryllium amended for the bank. We stay hopeful that if things proceed to amended successful the state from present now, we would scope our pre-Covid ratio successful the adjacent mates of quarters,” Ghosh added.