The Business Bytes
TBB BUREAU
KOLKATA, JAN 20, 2023
Bandhan Bank Ltd on Friday reported a 66 per cent slump in its third quarter profit, due to higher provisions and lower interest income.
Net profit for the quarter-ended December 31, 2022, fell to 2.91 billion rupees from 8.59 billion rupees a year earlier, with provisions and contingencies rising 91 per cent.
Higher provisions for stressed loans also pushed its credit cost up to 6.4 per cent in the quarter from 3.7 per cent a year earlier.
Net interest income, the difference between interest earned and paid, fell 2.1 per cent to 20.80 billion rupees, while net interest margin, a key measure of profitability, fell to 6.5 per cent from 7.8 per cent a year ago.
“In terms of asset quality and stress, we see the worst is behind us and expect overall business momentum to remain robust from Q4 FY23 (fourth quarter of fiscal year 2023) onwards,” said Bandhan Bank Managing Director and Chief Executive Officer Chandra Shekhar Ghosh.
