Earnings Outlook
Bandhan Bank's Apr-Jun PAT seen rising 11% YoY
This story was originally published at 15:49 IST on 24 July 2024
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By Kshipra Petkar
MUMBAI – The net profit of Bandhan Bank is seen rising 10.8% on year to 7.99 bln rupees in Apr-Jun, according to an average of estimates by nine brokerages. The bank's net profit had plunged 93.2% on year to 546 mln rupees in Jan-Mar due to a sharp rise in provisions.
The net interest income of the bank is seen at 28.94 bln rupees for the quarter ended June, up 16.2% on year, according to the average of estimates. Sequentially, the net interest income is seen as almost flat.
The net interest margins are expected to moderate in Apr-Jun from 7.6% a quarter ago. Kotak Institutional Equities said it expects the net interest margin to decline 30 basis points from a quarter ago to 7.3% as the cost of mobilising deposits was high.
The balance sheet is expected to show a healthy performance during the quarter, brokerage firms said. As per the provisional numbers, the bank's gross advances rose 21.8% on year to 1.26 trln rupees and total deposits grew 22.8% on year to 1.33 trln rupees as on Jun 30.
Current and savings account deposits rose 13.8% on year to 444.53 bln rupees. As of Jun 30, the CASA ratio was at 33.4%, down from 37.1% a quarter ago and 36.0% a year ago. The cost of deposits is expected to remain high in the quarter under review, brokerages said.
The bank's microfinance portfolio will be under focus as they had written off bad loans worth 38.50 bln rupees in the previous quarter. These were loans given to small borrowers during the pandemic and were covered by a government guarantee. As per some media reports, the bank had termed the write-offs as a "prudent measure".
Analysts will also keenly watch the bank's commentary on asset quality and the status on the appointment of the bank's chief executive officer. Earlier this month, the board of directors of the bank approved the appointment of Ratan Kumar Kesh as interim managing director and chief executive officer of the bank.
The Kolkata-based bank will announce its results on Friday. At 1445 IST, the shares of the bank were down 4.3% at 187.10 rupees on the National Stock Exchange.
Following are the Apr-Jun earnings estimates for Bandhan Bank, in mln rupees, based on reports from nine brokerages:
| Brokerage | Net Interest Income (in mln rupees) | Net Profit (in mln rupees) |
| Anand Rathi Share and Stock Brokers Ltd | 27,827.00 | 7,426.00 |
| Axis Securities Ltd | 29,490.00 | 8,370.00 |
| Emkay Global Financial Services Ltd | 29,017.00 | 7,329.00 |
| Kotak Institutional Equities | 29,149.00 | 8,759.00 |
| KR Choksey Research | 29,408.00 | 7,979.00 |
| Motilal Oswal Financial Services Ltd | 29,200.00 | 8,100.00 |
| Nirmal Bang Equities Pvt Ltd | 28,733.00 | 8,064.00 |
| Nomura Equity Research | 29,500.00 | 8,000.00 |
| Nuvama Wealth Management Ltd | 28,100.00 | 7,900.00 |
| Average | 28,936.00 | 7,991.89 |
End
Edited by Saji George Titus
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