InvestorQ : How were the results of Bandhan Bank and is the stock looking to put its worst fears behind?
ishika Banerjee made post

How were the results of Bandhan Bank and is the stock looking to put its worst fears behind?

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4 weeks ago
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Bandhan Bank reported 17.34% higher revenues at Rs.3579 crore for the Sep-20 quarter. The operating profits grew 24.53% at Rs.1627 crore while the net profits fell 5.33% to Rs.920 crore on the back of a surge in provisioning for doubtful debts from Rs.145 crore to Rs.395 crore.

The impact was felt in margins too as the OPM was up by 260 bps at 45.47% while the net profit margins fell by 600 bps to 25.70%. This fall was largely on the back of a spurt in loan loss provisioning. The company also announced growth in deposits of 34% while loans grew 19.4% on a yoy basis.

The good news on the deposit front is that the CASA deposits consisting of low cost current and savings accounts grew by 56% to constitute 38.2% of the total deposit base. This ensures lower overall cost of deposits.

On the asset quality front, GNPAs fell sharply to 1.18% as its Eastern and North Eastern portfolio have been more or less managed or at least bottomed out. With net NPAs at just 0.36%, most of the immediately losses are fully provided for. That adds to the attractiveness of the bank.

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