Private sector lender Bandhan Bank reported a sharp 41.8 per cent year-on-year (YoY) decline in net profit to ₹426.5 crore for the third quarter of FY25, compared to ₹732.7 crore in the same period last year. The results were announced in a regulatory filing on January 31.
Despite the decline in profitability, the bank saw a 12.1 per cent YoY increase in Net Interest Income (NII), which stood at ₹2,830.3 crore, up from ₹2,525.4 crore in Q3 FY24. Net Interest Margin (NIM) dropped to 6.9 per cent from 7.2 per cent in the year-ago period.
Bandhan Bank’s asset quality remained stable, with Gross Non-Performing Assets (GNPA) at 4.68 per cent as of December 31, 2024. Net NPA stood at 1.28 per cent, slightly improving from 1.29 per cent on a sequential basis. The bank’s gross advances increased by 14 per cent YoY to ₹1.32 lakh crore, compared to ₹1.16 lakh crore in the previous year.
The bank reported a net revenue of ₹3,926 crore in Q3 FY25, reflecting a 28 per cent YoY growth from ₹3,071 crore in Q3 FY24. Operating profit surged 22 per cent YoY to ₹2,021 crore, up from ₹1,655 crore in the corresponding period last year.
Provisions (excluding tax) and contingencies rose sharply to ₹1,376 crore in Q3 FY25, more than double the ₹684 crore recorded in Q3 FY24. The bank’s Return on Assets (RoA) stood at 0.9 per cent, while Return on Equity (RoE) was recorded at 7 per cent on an annualized basis.
Total deposits increased 20 per cent YoY to ₹1.41 lakh crore as of December 31, 2024, up from ₹1.17 lakh crore in the year-ago period. The bank’s CASA (Current Account Savings Account) deposits stood at ₹44,735 crore, with a CASA ratio of 32 per cent. The share of CASA and retail term deposits in total deposits stood at approximately 69 per cent.
EEB (Emerging Entrepreneur Business) loan collection efficiency declined slightly to 97.4 per cent for Q3 FY25. The Provision Coverage Ratio (PCR), including technical write-offs, improved significantly to 85.4 per cent from 70.2 per cent a year ago.
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Bandhan Bank’s retail book saw an impressive 95 per cent YoY growth, while commercial banking expanded by 38 per cent. The housing portfolio increased by 13 per cent YoY (19 per cent YoY excluding IBPC).
The bank continued its network expansion, operating nearly 6,300 outlets across India, supported by a workforce of approximately 78,400 employees.
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