Bandhan Bank Share Price Today

Bandhan Bank was incorporated in 2015 as the RBI granted a universal banking license. The bank has a strong presence in eastern and north-eastern India with MFI loans being its forte while acquisition of Gruh Finance boosted the home loan book.

• Total ~52% of loans are from emerging enterprise business (EEB)
• The bank has 1411 branches in 34 states, UTs & customer base of 3 crore

Revival in earnings driven by lower provisions.

• NII down 2.7% YoY as NIMs contracted 140 bps QoQ to 7.3%
• Provision down 52% QoQ to ₹ 735 crore resulting in ~3x increase in PAT at ₹ 808 crore
• Loan growth was slower at ~10% YoY; strong traction in non-MFI book

Bandhan Bank announced Q3FY24 results:

• Net Interest Income: Increased to Rs 2,525 crore in Q3FY24 from Rs 2,081 crore in Q3FY23, marking a growth of 21%.

• Loan Portfolio: Stands at Rs 1.16 lakh crore, showing a YoY growth of 18.6%.

  • Retail Loan books (excluding housing finance books) grew by 70% YoY.
  • Commercial Banking book grew by 60% YoY.
  • Housing Finance book grew by more than 6% YoY.
  • EEB Book exhibited a growth of 10% YoY, with a 7.5% QoQ growth.

• Total Deposits: Amounted to Rs 1.17 lakh crore, growing by 14.8% YoY, surpassing the industry average growth.

  • CASA deposits reached Rs 42,413 crore.
  • CASA ratio stood at a robust 36.1% in Q3FY24.

• Profit After Tax (PAT): Stood at Rs 733 crore in Q3FY24 compared to Rs 291 crore in Q3FY23, registering a growth of 152% YoY.

• Gross Non-Performing Assets (GNPA): Improved to 7.0% as of December 31, 2023, from 7.3% as of September 30, 2023.

  • Collection efficiency for the bank remained steady and healthy at 98% for the December 2023 quarter.
  • Collection efficiency for the EEB book also stood at 99% for the December 2023 quarter.
  • Collection efficiency for Assam & WB remained at a healthy 99%.

• Provision Coverage Ratio (PCR): Stood at 70% as of December 31, 2023.

• Net Interest Margin (NIM%): Stood at 7.2% in Q3FY24, an improvement from 6.5% in Q3FY23, and stable from 7.2% in Q2FY24.

• Return on Assets (ROA) & Return on Equity (ROE): Annualized for Q3FY24 stands at 1.9% and 14% respectively.

• Capital to Risk (Weighted) Assets Ratio (CRAR): Including 9MFY24 profits, stands at 19.8%.

Commenting on the performance, Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said: “The growth in this quarter across various segments of business is very encouraging. The bank has demonstrated stability across various key performance indicators despite a tough operating environment. With the recent CBS migration and the new talent in the Bank’s leadership, I am confident that we will continue the growth momentum. Looking ahead, we stand poised for growth, leveraging our robust foundation to seize emerging opportunities and continue serving the nation’s population with services that they truly deserve.”

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