Bandhan Bank Q2 Results: Net Profit Up 30% YoY At Rs 937 Cr; NII Surges 21% To Rs.2,948 Cr

At its meeting on Friday, October 25, 2024, in Kolkata, the Board of Directors of Bandhan Bank Limited approved the Bank's financial performance for the quarter and six months ending September 30, 2024. The financial statements for the quarter that ended on September 30, 2024, have been approved by the statutory auditors.

The bank's profit after tax for the quarter ended Sept 30, 2024, stood at Rs.937 crore as against Rs 721 crore in the year-ago quarter, registering a growth of 30% YoY. For the quarter, the bank's RoE was 15.8% and its RoA was 2.1%. The bank's net revenue increased by 19% to Rs. 3,543 crore in Q2 FY25 from Rs. 2,984 crore in Q2 FY24. As of the second quarter of FY25, net interest income (NII) was Rs. 2,948 crore, up 21% from Rs. 2,443 crore in the same period last year. The quarter's Net Interest Margin (NIM) was 7.4% compared to 7.2% in Q2 of FY24. Operating profit increased by 17% to Rs. 1,855 crore in Q2 FY25 from Rs. 1,583 crore in Q2 FY24.

In comparison to the Rs. 636 crore in Q2 FY24, the provisions (apart from tax) and contingencies charged to the profit and loss for Q2 FY25 were Rs. 606 crore. In Q2 FY25, the bank's Gross Non-Performing Assets (GNPA) improved YoY to 4.7% from 7.3% in Q2 FY24, although the collection efficiency for EEB loans was somewhat lower at 98.1%. As of September 30, 2024, Bandhan Bank's provision coverage ratio was 73.5%, up from 70% the year-ago quarter, and its net non-performing assets (NPA) increased to 1.3% in Q2 FY25 from 2.3% in Q2 FY24. Total deposits as of September 30, 2024, were Rs. 1.43 lakh crore, up 27% year on year and 7% quarter on quarter from Rs. 1.12 lakh crore in Q2FY24.

The bank has 47,283 crore in CASA deposits, with a CASA ratio of 33.2% and a CASA + Retail TD to total deposit ratio of 68%. Gross Advances as of September 30, 2024, were Rs. 1.31 lakh crore, up 21% year on year and 4% quarter on quarter from Rs. 1.08 lakh crore the year before. In terms of year-on-year growth, the retail book increased by 92%, the commercial banking book by 40%, the EEB book by 11%, and the housing book by 17%.

Ratan Kumar Kesh, MD & CEO, 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."

The bank has around 6,300 outlets in its distribution network. During the quarter, the bank attracted 7 lakh new customers, bringing its total number of existing clients to over 3.50 crore. At present, the bank employs close to 80,000 individuals.