Bandhan Bank Q1FY24 Preview: Modest Earnings Expected In Soft Quarter

Bandhan Bank is expected to make a modest report for its Q1FY24 earnings, coming off the back of a recent weak business update, the resignation of its CFO Sunil Samdani, and the recent floods in Assam.  

Even though Bandhan Bank’s loans saw a 5.5 per cent decline quarter-on-quarter (QoQ) and its deposit growth remained lacklustre, the bank has shown optimism and stated that their loan and deposit growth numbers in FY24 will be above industry levels at around 20 per cent. “The management is still optimistic that the bank will have strong and sustained growth in the coming quarters,” said Shreyansh Shah, Research Analyst, Stoxbox. 

While the bank is optimistic of the outcomes, with a net interest margin (NIM) guidance of approximately 7 to 7.5 per cent for FY24, experts are still cautious, “we are watchful on the sustenance of key parameters, especially the bank’s asset quality,” said Shah.  

In the previous March quarter, Bandhan Bank reported a 58 per cent year-on-year (YoY) plunge in net profit, standing at Rs 808.29 crore for the March quarter. The net interest income (NII) for the same period fell 2.7 per cent YoY to about Rs 2,470 crore. 

Ahead of the results announcement, Bandhan Bank’s shares were trading slightly higher at Rs 217.20, compared to a Rs 215.90 close on Thursday.