Bandhan Bank

Bandhan Bank has reported 42% dip in net profit at Rs 426.49 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted healthy 12% growth in net interest income (NII), while the core fee income of the bank has declined 8% in Q3FY2025. The Net Interest Margin (NIM) of the bank slipped to 6.90% in Q3FY2025 compared to 7.20% in the corresponding quarter of previous year.

On business front, the bank as has posted 16% growth in business with 13% increase in loan book. The asset quality of the bank was stable in Q3FY2025. Bank has substantially reduced the credit to deposit ratio to 92.7% at end December 2024 from 98.7% at end December 2023. CASA ratio of the bank has declined to 31.7% at end December 2024 from 36.1% at end December 2023.

Asset quality stable, slippages rise: The bank has maintained stable asset quality with high provisions in Q3FY2025.

The fresh slippages of loans stood at Rs 1620 crore in Q3FY2025 compared with 1110 crore in previous quarter and Rs 1390 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs was at Rs 280 crore and the write-off of loans was at Rs 1270 crore in Q3FY2025.

Provision coverage ratio increased to 85.40% at end December 2024 compared to 83.70% a quarter ago and 70.20% a year ago.

The capital adequacy ratio of the bank stood at 14.5% with Tier I ratio at 13.7% at end December 2024.

Asset Quality Indicators: Bandhan Bank
'	Dec/24	Sep/24	Jun/24	Mar/24	Dec/23	Variation
						QoQ	YTD	YoY
Gross NPA (Rs Crore)	6178.50	6105.30	5304.36	4784.88	8135.54	1	29	-24
Net NPA (Rs Crore)	1636.70	1620.20	1396.43	1347.61	2439.57	1	21	-33
% Gross NPA	4.68	4.68	4.23	3.84	7.02	0	84	-234
% Net NPA	1.28	1.29	1.15	1.11	2.21	-1	17	-93
% PCR	85.40	83.70	84.80	84.50	70.20	170	90	1520
% CRAR - Basel III	14.54	14.34	14.97	18.28	17.86	20	-374	-332
% CRAR - Tier I - Basel III	13.70	13.60	14.10	17.20	16.90	10	-350	-320
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights:

Business growth ease: The business of the bank has increased at slower pace of 16% YoY to Rs 271652 crore end December 2024 from 24% growth end September 2024. The deposits have increased 20% to Rs 141000 crore at end December 2024. The loan book has moved up 13% to Rs 130652 crore.

CASA deposits ratio declines: The CASA deposits of the bank increased 5% YoY to Rs 44740 crore at end December 2024. The current account deposits declined 8% to Rs 6120 crore, while saving account deposits increased 8% to Rs 38620 crore end December 2024. The CASA ratio declined to 31.7% at end December 2024 compared to 36.1% at end December 2023, while declined from 33.2% a quarter ago. The term deposits have increased 28% to Rs 96260 crore end December 2024.

Moderate retail loan growth: Advances growth was driven by retail loans rising 7% YoY to Rs 97520 crore at end December 2024, while credit to MSME jumped 38% to Rs 34500 crore at end December 2024.

Investment book of the bank increased 24% YoY to Rs 36310 crore at end December 2024.

Margins dip: The bank has showed 50 bps YoY jump in cost of deposits to 7.10%, while yield on advances declined 10 bps YoY to 13.30% in Q3FY2025. NIM has declined 30 bps YoY to 6.90% in Q3FY2025.

Branch expansion: The bank has network of 1703 branches and 438 ATM`s end December 2024.

Book value of the bank stood at Rs 149.2 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 138.9 per share at end December 2024.

Quarterly Performance

NII growth ease as NIM dips: Bank has recorded 17% increase in the interest earned at Rs 5478.73 crore, while interest expenses increased 24% to Rs 2648.45 crore in Q3FY2025. NII rose at slower pace of 12% to Rs 2830.28 crore in the quarter ended December 2024.

Core fee income declines: Bank has posted 8% decline in core fee income to Rs 330 crore, while the other income jumped 493% to Rs 647 crore and bad debt recovery income jumped 55% to Rs 119 crore in Q3FY2025. The overall non-interest income jumped 101% to Rs 1095.85 crore in the quarter ended December 2024.

Expenses ratio rises: The operating expenses of the bank increased 35% to Rs 1904.77 crore, as other expenses moved up 31% to Rs 677.42 crore, while employee expenses increased 37% to Rs 1227.35 crore in Q3FY2025. Cost to income ratio jumped to 48.5% in Q3FY2025 compared with 46.1% in Q3FY2024. Operating Profit increased 22% to Rs 2021.36 crore.

Provisions and contingencies jump: The bank has showed 101% surge in provisions to Rs 1376.01 crore.

Effective tax rate increased to 33.9% in Q3FY2025 from 24.6% in Q3FY2024. Net Profit slipped 42% YoY to Rs 426.49 crore during quarter ended December 2024.

Financial Performance 9MFY2025:

Bank has posted 12% increase in net profit to Rs 2427.39 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 18% to Rs 8783.57 crore, while non-interest income moved up 51% to Rs 2218.10 crore, pushing up net total income by 23% to Rs 11001.67 crore in 9MFY2025. The operating expenses increased 26% to Rs 5184.32 crore, while provision and contingencies galloped 30% to Rs 2505.25 crore, allowing profit before tax to increase 15% to Rs 3312.10 crore in 9MFY2025. The cost-to-income ratio improved to 47.1% in 9MFY2025 compared to 46.2% in 9MFY2024. An effective tax rate rose to 26.7% in 9MFY2025 compared to 24.4% in 9MFY2024. The net profit has increased 12% to Rs 2427.39 crore in 9MFY2025.

Bandhan Bank: Results
Particulars	2412 (3)	2312 (3)	Var %	2412 (9)	2312 (9)	Var %	2403 (12)	2303 (12)	Var %
Interest Earned	5478.73	4665.43	17	16514.37	13680.28	21	18869.62	15904.70	19
Interest Expended	2648.45	2140.07	24	7730.80	6220.94	24	8544.01	6645.08	29
Net Interest Income	2830.28	2525.36	12	8783.57	7459.34	18	10325.61	9259.62	12
Other Income	1095.85	545.16	101	2218.10	1470.54	51	2164.65	2468.55	-12
Net Total Income	3926.13	3070.52	28	11001.67	8929.88	23	12490.26	11728.17	6
Operating Expenses	1904.77	1415.21	35	5184.32	4128.87	26	5850.77	4636.82	26
Operating Profits	2021.36	1655.31	22	5817.35	4801.01	21	6639.49	7091.35	-6
Provisions & Contingencies	1376.01	684.01	101	2505.25	1922.25	30	3696.57	4198.37	-12
Profit Before Tax	645.35	971.30	-34	3312.10	2878.76	15	2942.92	2892.98	2
EO	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
PBT after EO	645.35	971.30	-34	3312.10	2878.76	15	2942.92	2892.98	2
Provision for tax	218.86	238.58	-8	884.71	703.82	26	713.35	698.35	2
PAT	426.49	732.72	-42	2427.39	2174.94	12	2229.57	2194.63	2
EPS*(Rs)	10.6	18.2	'	20.1	18.0	'	13.8	13.6	'
Adj BV (Rs)	138.9	117.9	'	138.9	117.9	'	125.2	112.6	'
* Annualized on current equity of Rs 1610.97 crore. Face Value: Rs 10, Figures in Rs crore
Source: Capitaline Corporate Database

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