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Wednesday, August 12th, 2020

Bandhan Bank posts ₹1,111.95 cr. profit

by April 27, 2017 General

Bandhan Bank reported a ₹111.95 crore post-tax profit in 2016-17, its first full year of operation.

The Current Account and Savings Account (CASA) balance stood at ₹6,837.3 crore which was 29.4% of the total deposits, Bandhan Founder Managing Director and CEO, Chandra Sekhar Ghosh said. He reiterated that the bank will not go for large corporate portfolios. “The small micro and MSME sector will continue to be our focus area”, he said. Bandhan closed the year with a net non-performing asset of 0.26 %. Its net interest income stood at ₹2,403.5 crore with a net non interest income of ₹411.4 crore.

With a one-crore strong customer-base, its deposits were ₹23,288.6 crore with gross advances of ₹23,543.3 crore. Retail advances constituted nearly 100 % of the bank’s loan portfolio. Bandhan’s capital adequacy ratio was higher than the regulatory requirement. Gross advances were at ₹23,543.3 crore, before assignment or deploying the cash through interbank participatory certificates (IBPC).

Mr. Ghosh said that the bank posted a “ decent profit despite spending on technology infrastructure and new employees.”

The bank started its operations on August 23, 2015 and operates in 33 states and Union territories through 840 branches and 2443 door step services centres (with 12,004 point of sale machines), besides 282 ATMs. “We plan to cover Andaman & Nicobar, Lakshadeep and Daman and Diu this fiscal,” he said.

Erstwhile micro finance institution Bandhan received an in-principle approval from the Reserve Bank of India in April 2014, for setting up a universal bank. It commenced operations in August 2015 with 501 branches, making it eastern India’s first bank after independence. Its equity holders include IFC, SIDBI and an arm of GIC, Singapore.