Bandhan Bank's Q4 earnings missed estimates for the second time in a row. The bank's weak NII momentum led to the lowest ever net interest margin this quarter. Further, Bandhan Bank has undertaken a huge write off which has aided the NPAs.
On collection efficiency, Chandra Shekhar Ghosh, MD & CEO of the bank said, “Collection efficiency is 95 percent compared to the 90 percent in the December quarter. It has improved 5 percent, but if I deduct the NPA number and also in the provision number that collection efficiency will come to 98.1 percent so for that reason I feel that whatever collection efficiency is improved from the first quarter of the last year 68 percent to 98 percent is a very good trend and that will continue in the future.”
“In April due to the second wave, my people are not able to go to all villages or the local areas for the collection so there is a 3 percent decline from the March figure, 98 has come to the 95 percent.”
Margin was down in Q4, 6.8 percent versus 8.3 percent over the Q3, Ghosh said, “There was interest reversal of Rs 500 crore for that reason it has come down otherwise it is normal.”
On restructuring, he said, “As of today we have not restructured any loan other than my housing loans. We have restructured Rs 617 crore of housing loans and all loans are very much secured. All unsecured loans we have not restructured and we have no plans in future to restructure.”
On lending, he said, “As a universal bank, we are allowed to lend to microcredit organisation and accordingly we are lending to microcredit organisation. Last year bank has provided Rs 500 crore under TLTRO and a major portion was gone to the MFIs.”
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