Bandhan Bank has encountered the increase in net profit by 35%, which accounts for ₹327 crore during the first quarter of the current financial year as compared to the similar period last fiscal.
Chandra Sekhar Ghosh, Chairman, and founder of Bandhan Bank has said that credit growth during the first quarter witnessed 35 per cent growth at ₹21,389 crore year-on-year and deposits saw 51% growth at ₹22,439 crore. The gross non-performing asset(NPA) in the first quarter marginally increased at 0.82% from the 0.22% year-on-year while net NPA stood at 0.49% from 0.14% year-on-year.
The reason behind the increase in NPA was due to agriculture farm loan waiver in states like UP, Maharashtra, MP, Delhi, and Haryana. Although Bandhan Bank was not directly involved as it did not extend farm loan, but advances were made in allied agriculture like fisheries, milking cows and vegetable growing.
The bank would seek areas like MSME and affordable housing for advancing credit. Also, it would start selling third party products in mutual fund and general insurance from September, while it would continue to extend micro-credit.