Bandhan Bank reports remarkable growth in Q3 FY24 earnings

Bandhan Bank

Bandhan Bank witnessed a significant surge in its net profit, escalating by 152% year-on-year to ₹732.7 crore, up from ₹290.6 crore in the corresponding quarter of the previous year. The bank’s Net Interest Income (NII) also saw an appreciable increase of 21% annually, reaching ₹2525 crore compared to ₹2081 crore in the same period last year. The bank’s total deposits were reported at ₹1.17 lakh crore, according to the press release from the company.

Regarding the bank’s loan portfolio, there was an 18.6% year-on-year increase to ₹1.16 lakh crore in the third quarter of FY24. Excluding the housing finance segment, the retail loan portfolio expanded by 70% year-on-year, with commercial banking experiencing a 60% growth and housing finance registering a growth of over 6% year-on-year. The EEB Book saw a 10% year-on-year increase, with a 7.5% rise on a quarterly basis. The bank’s total deposits grew by 14.8% year-on-year, surpassing the industry average growth rate.

The bank’s gross Non-Performing Assets (NPA) saw an improvement, decreasing to 7% as of December 31, 2023, from 7.3% as of September 30, 2023. The collection efficiency remained robust at 98% for the quarter, with the EEB book achieving a 99% collection efficiency in the December quarter.

Bandhan Bank also reported the addition of approximately 9 lakh new customers during the quarter, bringing the total customer count to 3.26 crore. The bank operates over 6,250 banking outlets nationwide and has seen its workforce increase to above 75,000 employees.

Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank, expressed optimism about the bank’s performance, highlighting the stability and growth across various business segments despite challenging conditions. He attributed the success to recent strategic initiatives, including CBS migration and the infusion of new leadership talent, and remained confident in the bank’s growth trajectory and commitment to serving the nation’s needs.

Also Read | Bandhan Bank names Santosh Nair as Head of customer Lending & Mortgages

The bank’s shares ended the trading session 0.96% up at ₹216.25 per share on the Bombay Stock Exchange on Friday, despite experiencing a 6.23% decline over the past month.

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