MUMBAI, (GNI): Chandra Shekhar Ghosh, Founder, MD and CEO of Bandhan Bank announced posting Rs 1,111.95 crore net profit for financial year 2017 during a press conference in Mumbai today. This has been the first full financial year of operations for the bank which started its operations on 23rd August 2015.
The Board of Directors of Bandhan Bank approved its audited financial results for the year ended 31st March 2017 on 26th April at its meeting held in Kolkata where the bank is headquartered.
Results at a Glance:
Profit After Tax : Rs 1,111.95 crore
Net Interest Income : Rs. 2,403.50 crore
Non-Interest Income : Rs. 411.41 crore
Gross Advances : Rs. 23,543.29 crore
Deposits : Rs. 23,288.66 crore
Net worth : Rs. 4,446.46 crore
The Key ratios:
CASA : 29.43%
RoA : 4.47 %
RoE : 28.51 %
Gross NPA : 0.38 %
Net NPA : 0.26 %
CRAR : 26.36 %
Deposit Portfolio: Since inception Bandhan Bank has recorded a healthy deposit portfolio of Rs. 23,228 crore. Of this, the Current Account and Savings Account (CASA) balance stood at Rs. 6,837.34 crore (29.43% of total deposits) as on 31 March 2017.
Credit Portfolio: Gross advances* during the year grew at 51 % to Rs 23,543.29 crore. The retail advances constituted nearly 100% of the loan portfolio of the bank.
*These are before assignment / IBPC. On book advances as on 31st March 2017 stood at Rs.16, 839.08 crore.
The Capital Adequacy Ratio of the bank as on 31st March 2017 was 26.36% with Tier 1 Capital Adequacy Ratio at 24.77%, significantly higher than regulatory requirement.
Bandhan Bank operates across 33 States and Union Territories through a network of 840 branches, 2443 Doorstep Service Centres and 282 ATMs. It has a customer base of 10.5 Million, served by 24,220 employees. During the year, the bank opened 184 branches, 54 ATMs and 421 Door Step Service Centres.
Technology initiative: Soon after its inception, Bandhan Bank introduced Mobile Banking and Internet Banking for its customers. It also offers International Debit Card in partnership with Visa International.
Bandhan’s field staff use 12,004 Point of Sale or PoS machines, enabling doorstep banking to its millions of customers.
Commenting on the financial performance, Mr. Chandra Shekhar Ghosh, Founder, Managing Director & CEO, Bandhan Bank, said: “I am happy to announce that our journey as a universal bank has been smooth. Despite spending on technology, infrastructure and new employees, the bank has posted a decent profit. A very high capital adequacy ratio shows our robustness. The growth in deposits, including current and savings accounts, is also very encouraging. During 2017, we introduced a string of products in the MSME loan segment and we will continue to offer new products and personalised services to all our customers.”
About Bandhan Bank Ltd. Bandhan Bank is the first instance in India of a microfinance entity transforming into a universal bank. It received the ‘in-principle’ approval from the Reserve Bank of India in April 2014 and the banking regulator’s final nod came on June 17, 2015. Bandhan Bank commenced its operations on August 23, 2015, with 501 branches, 2,022 Door Step Service Centres (DSCs) and 50 ATMs across 24 Indian states. The bank was inaugurated by Arun Jaitley, Minister of Finance, Corporate Affairs and Information and Broadcasting, Government of India, in Kolkata at a grand function attended by regulators, policy makers and luminaries from financial sector and corporate India. Bandhan is the first bank to be set up in eastern part of India post-Independence.
Its public shareholders include among others International Finance Corporation,
Industries Development Bank of India and an arm of GIC, the sovereign wealth fund of Singapore.ends