Bandhan Bank reports Rs 275 crore net profit for the first 7 months

KOLKATA: Bandhan Bank, one of the two new universal banks, has reported Rs 275 crore net profit for the first seven months of its operation.

The Kolkata-based lender said it gross advances was Rs 15,500 crore at the end of March while deposits was Rs 12,088 crore. Almost 99% of its advances portfolio was on account of microfinance operation.

Before its conversion into a bank, Bandhan FInancial Services had reported net profit of Rs 315 crore for 2015-16. The current net profit is not comparable with the previous one due to the differences in the nature of operation. The latest financial position also captured a shorter period.

Ghosh said the access to deposits helped it to reduce cost of funds to 7.5% from 10.5% a year back. Its marginal cost based lending rate for one year was higher at 13.26% than its previous base rate of 12% at the new method takes the human resources, branch banking and IT cost into account, Ghosh said.

Bandhan Bank lends at 20.5% rate a year.

Ghosh said the bank's net interest rate margin was Rs 933 crore while it earned Rs 150 crore of non interest income. Total income was Rs 1083 crore.