Bandhan Bank dips further on IL&FS exposure

Private sector lender Bandhan Bank reported 10.3 per cent growth in net profit to Rs. 331.26 crore for the quarter ended December as it classified loans given to troubled infrastructure developer IL&FS Group as non-performing. The stock is experiencing selling-pressure as the results were below expectation.

The bank provisioned Rs. 384.95 crore for its exposure to infrastructure development and finance sector, which was classified as a non-performing asset during the quarter.

Gross NPA ratio increased to 2.4 per cent as on December compared with 1.7 per cent in the year-earlier period and 1.3 per cent, sequentially.

On Wednesday, another private sector lender IndusInd Bank reported muted profit growth as it provided Rs. 255 crore for loans given to IL&FS while maintaining ‘standard asset’ classification.

Bandhan’s net interest income (NII) for the quarter grew by 53.5 per cent to Rs. 1,124 crore while non-interest income rose 48.1 per cent to Rs. 234 crore. Operating profit for the period under review increased by 56.8 per cent to Rs. 900 crore.

On Friday, the Bandhan Bank stock opened at Rs. 460.60 per share and closed at Rs. 452.45 per share, down by Rs. 19.10 or 4.05 per cent.