If we told you that a single bank, only four years old, makes more profit than 17 banks together, would you believe it? The answer is probably no.
But this is true: Bandhan Bank, within a minimal four years since it started, has made more profit than that of 17 public sector banks.
Read on to know how this happened!
Bandhan Bank Reports Huge Profits; More Than 17 PSUs Combined
Bandhan Bank was established only four years back, on August 23, 2015, and its headquarters are in Kolkata, West Bengal. And in this small span of only four years, the bank has made unbelievable profits, which are more than 17 public sector undertaking banks (PSUs) put together.
As per the data revealed by the Capitaline report, the net profit of the 17 PSUs was Rs. 466.4 crores in the FY 2020 July-September time period, whereas, the net profit of Bandhan Bank has been Rs. 971. 8 crores.
The total profit of the PSUs has been dragged down because of a few banks included in them, which reported heavy losses. The loss of Allahabad Bank has been reported at Rs. 2114 crores, the loss of Indian Overseas Bank is Rs. 2253.6 crores, and UCO Bank reported losses of Rs. 892 crores.
Even though other banks reported profits, they weren’t helpful in bringing the net profit up. The State Bank of India showed a profit of Rs. 3011.73 crores, Bank of Baroda reported a profit of Rs. 736.68 crores and Punjab National Bank, which has recently made news for being merged with 9 smaller banks, has reported a profit of Rs. 507 crores.
Moreover, the loss of these PSUs has been credited to non-performing assets (NPAs), as these banks have reserved a considerable amount of money as provisions. The total provisions of these PSUs is of the huge amount of Rs. 39310 crores. Although this declined by 18.2% YOY, it was still bigger than Rs. 19207.09 crores that were reported by the private sector banks.
Bandhan Bank’s Merger With Gruh Finance Plays Huge Part In Boostin Profits
It was in January of this year that Bandhan Bank had merged with GRUH Finance, which is an HDFC Ltd. backed housing finance arm. This merger has played a huge part in boosting the profits of Bandhan Bank. before the merger, i.e. in 2018, Bandhan Bank reported profits of Rs. Rs 487.65 crores.
Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said, “Our performance this quarter has been good. There has been a strong growth in deposits and advances with record growth in profits. As we step into the second half of the financial year we feel more confident given our current performance.”