Bandhan Bank This autumn internet falls 80% on provisions for MFI mortgage write-offs

Private sector lender Bandhan Bank on Saturday reported an 80 per cent year-on-year (y-o-y) fall in internet revenue for the quarter ending March to Rs 103.03 crore on the again of extra provisions on non-performing property (NPAs).
The Kolkata-based financial institution had posted Rs 517.28 crore internet revenue within the fourth quarter of FY20. The lender’s complete provision and contingencies in Q4FY21 rose 92.7 per cent y-o-y to Rs 1,594.30 crore from Rs 827.36 crore in the identical quarter earlier fiscal.
During the interval beneath overview, gross NPAs as a proportion of complete loans rose 569 foundation factors quarter-on-quarter (q-o-q) to six.8 per cent from 1.11 per cent through the third quarter final fiscal.
The financial institution’s proforma gross NPA had stood at 7.12 per cent in Q3FY21.
During Q4FY21, internet NPA ratio rose by 325 foundation factors q-o-q at 3.51 per cent. Chandra Shekhar Ghosh, MD and CEO, Bandhan Bank, stated a really difficult yr ended on a optimistic notice with development and assortment coming again to normalcy. “With accelerated provisioning and write off, we are now well placed as we enter FY22,” he stated.
During the fourth quarter, the financial institution wrote-off Rs 1,930 crore price of loans, the place Rs 1,876 crore was from microfinance establishments (MFIs). “Our bank did not restructure any loan in the microfinance segment, while Rs 617 crore of housing finance was restructured,” Ghosh stated.