Kolkata's Bandhan Bank reports 18% growth in last quarter

The Kolkata-based private sector lender Bandhan Bank on Saturday reported an over 18% growth in net profit for the quarter to September at Rs 331 crore on a substantial rise in both net interest income and non- interest income.

Net interest income for the quarter rose nearly 22%  to Rs 694 crore from Rs 569 crore a year ago, while non- interest income rose a higher 66.42% to Rs 223 crore from Rs 134 crore, the bank said in a statement.

Its current accounts-saving accounts deposits rose to 28.18 % of total deposits from 16.71 % in the year-ago period.

Total advances (including IBPCs and assignment of the portfolio) in the quarter rose 23.42 % to Rs 22,111 crore, while deposits grew at a higher 42.29% to Rs 25,442 crore.

Managing director Chandra Shekhar Ghosh said the management has already appointed merchant bankers for its proposed IPO.

Net interest margin slipped to 9.33 % from 10.17% in the corresponding quarter and Ghosh said this was due to lowering of lending rates.

Gross non-performing assets also inched up to 1.26% from 0.82% and so was net NPAs which rose to 0.67% from 0.49%.

Capital adequacy ratio stood at 26.25% with tier 1 capital ratio at 24.86%.

Bandhan Bank operates 864 branches across 33 states and Union territories, 2543 doorstep service centres and 386 ATMs and serves 11 million customers.

Bandhan Bank is the first micro-finance entity to transform itself into a universal bank in June 2015.