Bandhan Bank showed the scars of a change in state rules and a challenging pandemic. Repayments from small borrowers floundered and stress on the balance sheet surged.Bandhan Bank’s provisions trebled from the year ago period because the lender had to set aside ₹1000 crore specifically for pandemic-related stress in the December quarter.
Additional stress on both asset quality and loan growth emanated from Assam where the government passed a new bill. With its operating profit being set aside almost entirely towards provisioning, the bank’s net profit dropped 13.5% from the year ago period.