New Delhi: Bandhan Bank reported a 94 percent decline in net profit to Rs 54.6 crore in the January-March quarter of fiscal 2023-24 (Q4FY24), compared to 808.3 crore in the same period last year. According to reports, the decrease was due to additional provisions and a technical loan write-off.
During the quarter, provisions and contingencies totaled Rs 1704.3 crore compared to Rs 734.8 crore in the same quarter last year.
The bank stated that as a precautionary move and in compliance with its policy, it had technically wiped down debts totaling Rs 3852 crore.
In the fourth quarter of FY24, revenues increased by 16 percent to Rs 2,086 crore, up from Rs 2,471 crore the previous year. Bandhan Bank's board recommended a fifteen percent dividend at Rs 1.5 per equity share for FY24.
The bank’s managing director and chief executive officer Chandra Shekhar Ghosh explained that the write-off was on an old portfolio of 2019-20, 2020-21 and partly 2021-22.
The bank's net revenue was Rs 3560 crore, up from Rs 3,010 crore in the fourth quarter of FY23.
The bank said this month that Chandra Sekhar Ghosh, who has led the bank for nearly a decade, would retire at the end of his current tenure on July 9.
When asked about the status of the search for the bank's next managing director and CEO, he stated that the process was ongoing.
During Q4FY24, the bank's deposit book increased by twenty-five percent over the same quarter the previous year. The overall deposit book now stands at one point three five trillion rupees, with advances at one point two five trillion rupees.
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