Bandhan Bank has announced a standalone net profit of ₹937.44 crore for the second quarter of FY25, marking a 30% increase from ₹721.16 crore in the same quarter last year.
The bank’s total income rose by 21% to ₹6,094.53 crore in Q2 FY25, up from ₹5,032.18 crore in Q2 FY24. Operating profit increased by 17%, reaching ₹1,855 crore compared to ₹1,583 crore in the previous year.
Net Interest Income (NII) grew by 21% year-on-year to ₹2,948 crore. The Net Interest Margin (NIM) improved to 7.4% in Q2 FY25 from 7.2% in Q2 FY24.
Provisions and contingencies (excluding tax) stood at ₹606 crore, a decrease of 4.7% from ₹636.15 crore in Q2 FY24.
As of September 30, 2024, total deposits increased by 27% year-on-year to ₹1.43 lakh crore, up from ₹1.12 lakh crore. The Cost-to-Income Ratio was at 47.6% in Q2 FY25. Current Account Savings Account (CASA) deposits stood at ₹47,283 crore, with a CASA Ratio of 33.2%.
Gross Advances grew by 21% to ₹1.31 lakh crore, compared to ₹1.08 lakh crore in the same quarter of the previous year. Retail loans (excluding housing) surged by 92%, commercial banking increased by 40%, Emerging Entrepreneurs Business (EEB) grew by 11%, and the housing loan book (excluding IBPC) rose by 17%.
The bank’s asset quality improved, with Gross Non-Performing Assets (GNPA) reducing to 4.7% in Q2 FY25 from 7.3% in Q2 FY24. The Net NPA ratio stood at 1.3% as of September 30, 2024, down from 2.3% a year earlier. The Provision Coverage Ratio was 73.5%.
Collection efficiency for EEB loans was slightly lower at 98.1% for Q2 FY25.
As of June 30, 2024, the bank’s Capital Adequacy Ratio was 15.6%, exceeding the regulatory requirement of 11.5%.
Bandhan Bank’s distribution network includes nearly 6,300 outlets. During the quarter, the bank added 7 lakh customers, bringing the total customer base to over 3.5 crore. The bank currently employs nearly 80,000 people.
On a half-yearly basis, the bank’s net profit jumped 38.73% to ₹2,000.90 crore, with total income rising by 22.31% to ₹12,157.88 crore in H1 FY25 compared to H1 FY24.
Ratan Kumar Kesh, MD & CEO of Bandhan Bank, said: “Bandhan Bank’s strong performance in the second quarter reflects the momentum in quality growth with our focus on effective risk management and compliance. Our success is anchored in the trust of our customers and the dedication of our employees. By focusing on innovation in technology, refining our processes, and enhancing products and people capabilities, we are well-positioned to drive the next phase of growth for Bandhan Bank 2.0.”
Despite strong financial results, shares of Bandhan Bank fell by 6.84% to close at ₹168.30 on the BSE.
