Bandhan Bank Q4 Results: Bandhan Bank announced its January-March quarter results for fiscal 2023-24 (Q4FY24) on Friday, May 17, reporting a drop of 94 per cent in net profit to ₹54.6 crore, compared to ₹808.3 crore in the corresponding period last year. The drop in net profit was dragged by increased provisions and writing off bad loans during the quarter-under-review.
The bank’s net interest income (NII)– the difference between interest earned and interest expended– in the fourth quarter of FY24 rose 16 per cent to ₹2,866 crore, compared to ₹2,471 crore in the year ago period. Bandhan Bank’s board recommended a dividend of 15 per cent at ₹1.50 per equity share for FY24.
Also Read: Bandhan Bank’s Ghosh not to be part of the board post-retirement
Bandhan Bank Q4 Results – Key Metrics
‘’The board has also recommended dividend of Rs. 1.50 per equity share having face value of Rs. 10 each (i.e., 15 per cent) from the profits of the bank for the financial year ended March 31, 2024, subject to approval of shareholders at the bank’s ensuing Annual General Meeting (‘AGM’),” said Bandhan Bank in a regulatory filing to the stock exchanges.
‘’The dividend on equity shares will be paid/dispatched after the same is approved by the shareholders at the ensuing AGM,” added the private lender.
Bandhan Bank’s provisions and contingencies jumped to ₹1,774 crore from ₹735 crore in the year-ago period. The Kolkata-based bank wrote off bad loans worth ₹3,850 crore in the January-March period, compared with none in the past four quarters. These were loans given to small borrowers during the pandemic and were covered by a government guarantee.
However, the loans were being examined by the National Credit Guarantee Trustee Company, an agency set up by the government, the bank said, which could delay a payout of the government guarantee. The bank termed the write-offs as a “prudent measure”. The bank’s loans grew 14.3 per cent, while deposits rose 25 per cent.
Also Read: Bandhan Bank appoints Citi India’s Rajeev Mantri as chief financial officer
Bandhan Bank’s gross non-performing asset (GNPA) ratio – a key gauge of asset quality – improved to 3.84 per cent as of March-end from 7.02 per cent at the end of the prior three months as a result of the write-offs. The lender is set to see a management transition after Managing Director and Chief Executive Chandra Shekhar Ghosh said he would retire on July 9, after spending nearly a decade at the helm.
Ahead of the announcement of Q4FY24 results, shares of Bandhan Bank settled 0.86 per cent higher at ₹181.20 apiece on the BSE.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates & Live Business News.
More
Less
Published: 17 May 2024, 04:36 PM IST
Ananya Das is your guide to the latest trends, viral sensations, and internet phenomena. Based on a keen understanding of digital culture, Sophie navigates the ever-evolving landscape of trending topics. With an insightful and engaging approach, she explores what’s buzzing across social media platforms, ensuring readers stay in the loop with the most talked-about and shareable content online.
