Private sector lender Bondan Bank on Friday increased its net profit by 18 times to Rs 1,902.34 crore in the fourth quarter of last fiscal, compared to Rs 103.03 crore in the year-ago period, due to increase in both interest rates. And a decline in non-interest income and provisions.
Asset quality improved as non-performing assets (NPAs) declined by 9.75% year-on-year to Rs 5,757.76 crore from Rs 6,380 crore in the same quarter a year ago. According to the stock exchange filing, on a quarterly basis, NPA declined by 39.02% from Rs 9,441.57 crore. On a year-over-year basis, the gross NPA ratio decreased by 35 basis points to 6.46% from 6.81%.
Provisions for the quarter (excluding taxes) have been widened to Rs 4.7 crore from Rs 1,507.70 crore in the March 2021 quarter, the bank said.
Commenting on Q4 performance, MD and CEO Chandra Shekhar Ghosh said recovery from NPA accounts has improved significantly, NIM has increased, operating profit has increased and credit costs have come down to near zero. “Credit costs have been reduced to zero due to no new slippage and no improvement in collection,” Ghosh told FE, adding that there was no NPA provision writ-back in the quarter.
With the exception of NPA accounts, collection efficiency has returned to pre-covid levels. About 90% of our NPAs are paying customers, ”he said. At the end of the March quarter, collection efficiency for the EEB segment (formerly the microbanking segment), excluding NPAs, stood at 99% compared to 97% at the end of the December quarter.
Lender’s total advance (on book + off book + TLTRO + PTC) increased by 14.1% to Rs 99,338.1 crore as on March 31, 2022, as against Rs 87,042.9 crore as on March 31, 2021. Total deposits increased by 23.5% to Rs 96.3,96.3 crore as against Rs 77,972.2 crore as on March 31, 2021.