In This Article:
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Advances: INR1.32 lakh crore, 14% YoY growth.
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Deposits: INR1.41 lakh crore, 20% YoY growth.
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Net Interest Margin (NIM): 6.9% in Q3 FY25, 7.3% for nine months FY25.
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Net Total Income: INR3,926 crore, 28% YoY increase.
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Net Profit (PAT): INR426 crore for Q3 FY25, INR2,427 crore for nine months FY25, 12% YoY growth.
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Gross NPA: 4.7% as of December 2024.
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Net NPA: 1.2% as of December 2024.
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Provision Coverage Ratio (PCR): 85.4% including write-offs.
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Return on Assets (ROA): 1.8% annualized for nine months FY25.
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Return on Equity (ROE): 13.8% annualized for nine months FY25.
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CASA Ratio: 32%.
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Secured Book: 49% of total advances, 34% YoY growth.
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Collection Efficiency: 97.6% overall, 97.4% for EEB book.
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Credit Cost: 4.1% for Q3 FY25, 2.6% for nine months FY25.
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Capital Adequacy Ratio (CRAR): 16.1% including nine months profit.
Release Date: January 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bandhan Bank Ltd (BOM:541153) reported a year-on-year growth of 20% in deposits, surpassing the growth in advances.
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The bank's secured book grew by 34% year-on-year, improving the secured mix to 49% of total advances.
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Net total income for Q3 FY25 increased by 28% year-on-year, including one-off gains.
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The bank's geographical diversification efforts have reduced the concentration of advances in the East and Northeast regions.
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Bandhan Bank Ltd (BOM:541153) has implemented strategic initiatives such as forming a transformation management team and a Digital and Transaction Excellence unit to drive innovation and efficiency.
Negative Points
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The bank faced higher gross slippages in Q3 FY25, particularly in the EEB book, leading to increased credit costs.
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Net interest margin (NIM) declined to 6.9% in Q3 FY25 from 7.4% in the previous quarter due to changes in the product mix and higher slippages.
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Operating expenses grew by 35% year-on-year, partly due to a one-off ESOP accounting change.
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Collection efficiency declined in Q3 FY25, reflecting stress in the microfinance segment.
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The bank's profitability was impacted by higher provisions and technical write-offs, resulting in a lower net profit compared to the previous year.
Q & A Highlights
Q: How do you see the share of EEB (Emerging Entrepreneurs Business) evolving by FY27? A: Partha Pratim Sengupta, MD & CEO, stated that while EEB will continue to be an asset for the bank, the focus will be on growing other segments like housing loans, retail, gold loans, and MSMEs at a faster pace. The strategy is to grow 1x in EEB and 3x in other segments, aiming to increase the secured percentage from 49% to 55%.