Vivid News 24: Bandhan Bank’s parent company Bandhan Financial Holdings Limited has been permitted by the Reserve Bank of India (RBI) to invest in IDFC Asset Management Company Limited and IDFC AMC Trustee Company Limited.
The central bank has approved the proposal to acquire Bandhan’s 60 percent stake in these two companies for 2,700 crores and 30 lakh respectively. Not only that, if desired, Bandhan Financial Holding can buy an additional 10 percent stake in these two companies for 450 crores and 5 lakh respectively, RBI said in a letter.
An official of the company said that now only the approval of the securities and exchange board of India (SEBI) is left. Bandhan will start a mutual fund business by the end of the current financial year. In that case, the name of the company will be changed to Bandhan Asset Management Company.
On the other hand, Bandhan Bank released its financial results for the second quarter of the current financial year on Friday. It shows that the bank made a net profit of 209.3 crores in the last quarter, overcoming the shock of a loss of 3,008.6 crores in the July-September period of the financial year 2021-22.
However, the profit of Bandhan Bank has decreased by 76.4 percent compared to the April-June quarter of the financial year 2022-23. Mainly, the rise in new non-performing loans and loan waivers, especially micro-loans, are the cause of this financial fallout. Bandhan Bank has written off Rs 3,539 crore of loans in the last quarter. Which is much more than 2,029 crore in the fourth quarter of the last financial year.
In this regard, Chandra Shekhar Ghosh, Managing Director, and CEO of the bank said, “As we enter the second half of the financial year 2022-23, the economic activity is returning to the previous level and the difficult situation created due to the coronavirus epidemic is receding. Therefore, our profit numbers will be good at the end of the current financial year. We are hopeful.” Bandhan Bank is going to start its own credit card business next financial year.