Bandhan Bank reported a net profit of 103.03 crores for the quarter ended March 31, 2021, owing to higher provisions. In the previous year, the bank made a net profit of 517 crores.
In a regulatory filing, the lender stated that the board has approved a dividend of $1 per share, subject to approval by the members at the upcoming Annual General Meeting.
During the quarter, the Bank restructured accounts in the housing finance vertical worth 617 crores as of March 31, 2021, accounting for 0.71 percent of the Bank's total portfolio.
On a sequential basis, the bank's gross non-performing asset (GNPA) ratio dropped to 6.8% from 7.1 percent as of December 31, 2020. Its net non-performing assets (NPA) increased to 3.5 percent from 2.4 percent the previous quarter.
Bandhan Bank's provisions increased dramatically from 827.36 crores a year ago to 1,594 crores in the third quarter of 2021.
On account of NPA identification, there was a 525 crore interest reversal in Q4 FY 21. A total of 13 crore INR has been provided in interest on interest.
As of March 31, 2021, the company had added 5 lakh customers during the quarter and 29 lakh during the year, bringing the total customer base to 2.30 crore.
As of March 31, 2021, there were 5,310 banking outlets. As of March 31, 2020, the network had 1,147 branches and 4,163 banking units, compared to 1,018 branches and 3,541 banking units on March 31, 2020.
Bandhan began in 2001 as a non-profit organization dedicated to financial inclusion and women's empowerment through the development of sustainable livelihoods. After a few years, it became an NBFC, but the main goal of financial inclusion remained the same. Bandhan Bank was the first microfinance institution in India to turn into a universal bank when it opened its doors on August 23, 2015.