Managing director Partha Pratim Sengupta attributed the decline in profit to a one-time income of Rs 538 crore from the credit guarantee fund it received in the year-ago period. There was no such income in the reporting period.The bank managed to bring down the gross non-performing asset ratio to 3.33% from 5.02% three months earlier by selling bad loans amounting to Rs 3,212 crore to asset reconstruction companies. This resulted in lower provisions for the quarter.
“The stress is decreasing every quarter, with fewer slippages,” Sengupta said. “We are focusing on asset quality and its impact should be reflected from the next quarter.”
The bank has a stressed pool of Rs 6,051 crore, including Rs 2,310 crore from the microfinance book and Rs 2,670 crore from the residential finance vertical.
Sengupta said the stressed home loans are less likely to fall into the non-performing category as they are largely technical in nature. Bandhan’s gross advances grew 10% year-on-year to Rs 1.45 lakh crore, with the share of secured loans rising to 56.7% from 48.9% a year ago. Total deposits rose 11% to Rs 1.57 lakh crore.
Home First Finance Third quarter profit rises 44% to Rs 140 crore
Home First Finance Company India, a lender focused on affordable housing, reported a 44% rise in third-quarter net profit at Rs 140 crore compared to Rs 97 crore in the same period a year ago.
This was supported by steady business expansion and higher profits. Net total income rose 35% to Rs 290 crore.
The lender said loan disbursements for the quarter under review rose 11% year-on-year to a record high of Rs 1,318 crore, growing assets under management by 25% to Rs 14,925 crore.
The gross non-performing asset ratio stood at 2% at the end of December, an increase of 10 basis points compared to three months earlier.
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