Excessive slippages within the microfinance guide, rise in provisions to cowl the unhealthy loans led to the autumn. Asset high quality deteriorated with gross non-performing property ratio rising to 4.96% on the finish of June from 4.23% a 12 months again.
“We anticipate the problem within the rising enterprise section to proceed within the second quarter. Issues will begin getting higher from the third quarter,” managing director Partha Pratim Sengupta stated.
Provisions and contingencies for the quarter underneath overview jumped 119% year-on-year at Rs 1147 crore, largely on account of provisions to cowl unhealthy loans and write-off of ageing loans.
Recent slippages stood at Rs 1553 crore out of which Rs 1083 crore was on account of micro loans, stated chief monetary officer Rajeev Mantri. The financial institution wrote off loans to the tune of Rs 1047 crore through the quarter.
The financial institution’s working revenue stood 14% decrease at Rs 1668 crore in opposition to Rs 1941 crore, on account of a 8% decline in web curiosity earnings at Rs 2757 crore. Different earnings nonetheless rose 33% at Rs 726 crore.The online curiosity margin for the quarter stood at 6.4%, 117 foundation factors decrease from what it was within the year-ago interval.The financial institution, which was a microfinance firm earlier than its transformation right into a common financial institution in 2015, has decreased the share of group micro loans to 25.2% from 32.3% a 12 months again.
The financial institution’s gross mortgage portfolio expanded by 6.4% year-on-year to Rs 1.34 lakh crore even because it shrank 2.5% from the March 2025 stage.
Wholesale banking and housing finance, that are Bandhan’s main focus at this level, have grown 32% and 15% respectively. Wholesale banking accounted for 27.7% whereas housing finance contributed 24.4%.
The financial institution’s deposits grew 16% year-on-year to Rs 1.55 lakh crore with the share of present and financial savings accounts falling to 27.1% from 33.4%.
