Bandhan Bank declared its Q4FY22 earnings on Friday and even today, the market seems to be celebrating this. The stock opened over 2.5% higher at Rs.324.70 and went up to an intraday high to Rs.342.70, going up over 8%. Its 52-week high is at Rs.354.10.
The market has given these numbers a big thumbs up as its asset quality as well as earnings improved.
On asset quality, Gross NPA fell 435 bps to 6.46% and Net NPA too declined 135 bps to 3.01% (QoQ).
On the earnings front, NII rose 45% (YoY) at Rs.2540 crore and net profit was up from Rs.103 crore to Rs.1902 crore (YoY) and up from Rs.859 crore (QoQ).
What really helped was the fall in provisions – it was at Rs.4.7 crore v/s Rs.828 crore (YoY) v/s Rs.805 (QoQ). With asset quality getting better, the bank kept the provisioning low which in turn helped the bototmline.
The Bank’s NIM too improved from 7.8% to 8.7% (QoQ).
The management has guided at a continued improvement in asset quality and steady trends in loan growth.