Bandhan Bank results may not be great but it looks like perhaps the worst is behind them. The June quarter was impacted by pressure on operations due to the lockdown. Total Revenues were up 14.7% YOY at Rs.3,018 cr while Net Profits were 31.6% lower at Rs.550 cr. Gross NPA and NNPA improved to 1.43% and 0.48% respectively.

Bandhan reported lower Return on Equity at 14.1% compared to 24.3% last year. However, Bandhan Bank reported flat Capital Adequacy at 26.45%, while the Net Interest Margin came in only marginally lower at 8.2%. The Bank saw loan portfolio grow by 17.7% YOY in the June 2020 quarter while total deposits grew by 35.3% on a YOY basis.

The lower profit was largely due to an accelerated provision of Rs.750 crore made by the bank towards the risks of NPAs due to COVID-19 post the lifting of EMI moratorium. Due to the healthy NIMs, it reported Return on assets at the rate of 2.33% in Jun-20 quarter. CASA deposits accounted for 84% of the total deposits, which is a good sign.