Earnings Review
Bandhan Bank PAT slumps 42% on year on higher provisions
This story was originally published at 18:06 IST on 31 January 2025
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--Bandhan Bank Oct-Dec net profit INR 4.26 bln
--Bandhan Bank Oct-Dec net profit INR 4.26 bln vs INR 7.33 bln yr ago
--Bandhan Bank Oct-Dec total income INR 65.75 bln vs INR 52.11 bln year ago
--Bandhan Bank Oct-Dec provisions INR 13.76 bln vs INR 6.84 bln year ago
--Bandhan Bank Apr-Dec net profit INR 24.27 bln vs INR 21.75 bln year ago
--Bandhan Bank Apr-Dec total income INR 187.32 bln vs INR 151.51 bln year ago
--Bandhan Bank gross NPA ratio 4.68% as on Dec 31, unch from prev qtr
--Bandhan Bank net NPA ratio 1.28% as on Dec 31 vs 1.29% qtr ago
--Bandhan Bank capital adequacy ratio 14.54% as on Dec 31
--Bandhan Bank Oct-Dec net interest income INR 28.30 bln, up 12% on year
--Bandhan Bank Oct-Dec net interest margin 6.9% vs 7.4% in Jul-Sept
--Bandhan Bank advances INR 1.32 tln as on Dec 31, up 14% on year
--Bandhan Bank deposits INR 1.41 tln as on Dec 31, up 20% on yr
--Bandhan Bank current, savings account ratio 32% as on Dec 31
--Bandhan Bank provision coverage ratio 85.4% as on Dec 31
--Bandhan Bank net credit-deposit ratio 90.3% as on Dec 31
--Bandhan Bank Oct-Dec fresh slippages INR 16.2 bln vs INR 11.1 bln Jul-Sept
--Bandhan Bk Oct-Dec recovery, upgrades INR 2.8 bln vs INR 3.0 bln Jul-Sept
--Bandhan Bank Oct-Dec credit cost 4.1% vs 2.0% in Jul-Sept
By Ashutosh Pati
MUMBAI – Bandhan Bank's net profit for the December quarter slumped around 42% on year to INR 4.26 billion due to higher provisions. The bank's net profit was much lower than the Street's estimate. According to the average of estimates by 11 brokerage firms, the bank's net profit for the December quarter was expected to be INR 7.50 billion. On a sequential basis, the bottom line fell 54.5%.
The bank's provisions in the December quarter more than doubled to INR 13.76 billion from the corresponding period last year. The private lender's net interest income for Oct-Dec was INR 28.30 billion, up 12% on year. The net interest margin for the quarter was 6.9% compared to 7.2% a year ago and 7.4% a quarter ago.
Bandhan Bank's total income for the December quarter rose over 26% to INR 65.75 billion, registering the highest on-year growth in 11 quarters. The bank's gross advances were up 14% on year at INR 1.32 trillion as of Dec. 31.
The Kolkata-based bank's deposits rose 20% on year to INR 1.41 trillion as on Dec. 31. Of these, current account and savings account deposits stood at INR 447.35 billion and the CASA ratio was 32%. Bandhan Bank's net credit-deposit ratio was 90.3% as on Dec. 31. The capital adequacy ratio as on Dec. 31 was 14.54%.
Fresh slippages during the quarter under review were INR 16.2 billion, higher than INR 11.1 billion in Jul-Sept. The bank's recovery and upgrades were INR 2.8 billion, against INR 3.0 billion in the previous quarter. The bank's gross non-performing loans fell over 24% on year to INR 61.79 billion as on Dec. 31. The gross NPA ratio was 4.68% as on Dec. 31, unchanged from the previous quarter. As on Dec. 31, the net NPA ratio was down at 1.28% compared to 1.29% a quarter ago.
Bandhan Bank's net profit for the first nine months of 2024-25 (Apr-Mar) rose over 11% on year to INR 24.27 billion. The bank's total income for the same period was INR 187.32 billion compared to INR 151.51 billion in the year-ago period. The provision coverage ratio was 85.4% compared to 70.2% a year ago. Bandhan Bank's credit cost in the reporting quarter was 4.1%, up from 2.0% in the previous quarter. On Friday, shares of the bank closed at INR 151.38 on the National Stock Exchange, up 2.1%. End
Edited by Avishek Dutta
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