The financial institution mentioned the technical write-off was a “prudent and conservative” transfer to “strengthening” its portfolio. The lender additional mentioned it was a “very previous portfolio” in the course of the Covid occasions.
The Kolkata-based financial institution’s web revenue stood at ₹808.29 crore in the course of the fourth quarter of monetary yr 2022-23. Throughout the fourth quarter final fiscal, the financial institution’s complete provisions elevated to ₹1,774.32 crore from ₹734.77 crore from the corresponding interval earlier fiscal.
“The microfinance enterprise has confronted extreme headwinds in the course of the pandemic and we confronted points with asset high quality. We have now over the previous few years made provisions in opposition to the belongings. We have now reviewed our legacy portfolio and as a prudent measure, have achieved a technical write off in the course of the quarter which resulted in decrease income for the quarter,” Chandra Shekhar Ghosh, MD & CEO, Bandhan Financial institution, mentioned in the course of the financial institution’s earnings name with analysts and buyers after the outcomes announcement.
Ghosh, throughout a media convention, mentioned the final quarter of FY24 was a “testomony” to the momentum in enterprise that the financial institution gained. “We have now proven stability and development throughout main parameters. The financial institution additionally strengthened its core management within the quarter,” he mentioned.
Throughout Q4FY24, the financial institution’s deposit e-book grew by 25 per cent year-on-year, whereas complete mortgage e-book grew 14 per cent . Internet curiosity revenue (NII) for the quarter grew 16 per cent y-o-y at ₹2,866 crore in comparison with ₹2,472 crore in Q4FY23. NIM for the quarter stood at 7.6 per cent.
The financial institution’s asset high quality improved in the course of the quarter underneath assessment with its non-performing belongings (NPA), in absolute phrases, coming down by 9.69 per cent y-o-y at ₹4,784.88 crore, based on a inventory alternate submitting. Gross NPA ratio in the course of the quarter underneath assessment additionally fell 103 foundation factors y-o-y at 3.84 per cent in contrast with 4.87 per cent in Q4FY23.
Succession plan
The personal sector lender is about to see a administration transition after Ghosh determined to retire on July 9, after spending practically a decade on the helm.
The outgoing MD mentioned, “With the brand new appointments, we now have the total administration staff onboard and so they usher in a wealth of expertise and area data. I’ve the arrogance that they might lead the financial institution within the subsequent part of development which is Bandhan 2.0.”
On the succession plan, Ghosh, in the course of the earnings name with analysts and buyers, mentioned, “A search committee has been shaped and it has appointed headhunters.”
He mentioned the continued audit initiated by the Nationwide Credit score Assure Trustee Firm (NCGTC) is in progress and anticipated to be accomplished shortly.
Ghosh additionally mentioned that he’s hopeful of a “optimistic end result” of an ongoing audit initiated by the NCGTC on mortgage claims filed by the financial institution underneath a assure scheme.
“The audit is in progress and ought to be accomplished very shortly. Based mostly on my interplay, I’m assured and hopeful, we must always get a optimistic end result,” he added.
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