Bandhan Bank's Q1 Profit Soars 35%

Bandhan Bank announced a substantial 35% year-on-year increase in its net profit for the first quarter, amounting to Rs 502 crore. This rise in profitability was largely attributed to a significant decrease in provisions, which were down 41% compared to the previous year.

Despite facing challenges with higher operating expenses, including increased staff and technology costs, the bank's operating profit saw a 19% decline. However, lower credit costs played a crucial role in bolstering the net profit figures.

The bank demonstrated improved asset quality, with its gross non-performing assets (NPAs) ratio decreasing to 3.15% as of June end, down from 4.96% a year earlier. Gross advances experienced a healthy 16% year-on-year growth.

To manage the gap between credit and deposit growth, Bandhan Bank is exploring options such as borrowings from financial institutions and the securitization route. The bank's retail loan book, excluding housing loans, saw a considerable expansion of 45%.