InvestorQ : Why were the quarterly results of Bandhan Bank so disappointing for the Jun-21 quarter?
ishika Banerjee made post

Why were the quarterly results of Bandhan Bank so disappointing for the Jun-21 quarter?

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5 months ago
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Bandhan Bank reported 32% fall in net profit at Rs.373 for the Jun-21 quarter due to a spike in bad loans in the quarter. The total income for the quarter was up 20.4% at Rs.2,648 crore. The gross non-performing assets of the bank or GNPA spiked to 8.2% of the total advances, one of the highest levels the bank has seen in recent times. This figure was just at 1.4% in the Jun-20 period and the spike is largely on account of COVID 2.0.

Even the net NPAs were sharply higher from 0.5% last year to 3.3% in the Jun-21 quarter showing solid stress and lower provisioning for bad loans. In fact, for the Jun-21 quarter, the provisions for bad loans and contingencies increased to Rs.1,375 crore as compared to just Rs.850 crore parked aside in the Jun-20 period. This has been the story of most banks and NBFCs were loan loss stress is visible on account of the COVID pandemic.

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