Bandhan Bank recorded a significant 30 per cent year-on-year (YoY) growth in Profit After Tax (PAT), reaching Rs 937 crore for Q2 FY25. The Bank’s financial performance reflects improvements across major metrics, with the board of directors approving the quarterly results on October 25, 2024.
Key drivers of growth included a 27 per cent YoY increase in deposits, amounting to Rs 1.43 lakh crore, and a 21 per cent YoY growth in gross advances to Rs 1.31 lakh crore. Net Interest Income (NII) also increased by 21 per cent YoY, totaling Rs 2,948 crore for the quarter, while Net Interest Margin (NIM) rose to 7.4 per cent from 7.2 per cent a year prior.
Bandhan Bank achieved a marked improvement in asset quality. The Gross Non-Performing Assets (GNPA) ratio declined to 4.7 per cent in Q2 FY25, down from 7.3 per cent in Q2 FY24, while Net NPA improved to 1.3 per cent from 2.3 per cent YoY. The Provision Coverage Ratio increased to 73.5 per cent, indicating enhanced financial stability and risk management. The Bank’s capital adequacy ratio, inclusive of profits, stood at a robust 15.6 per cent, comfortably above the regulatory requirement of 11.5 per cent.
For the first half of FY25, Bandhan Bank’s net revenue grew 21 per cent YoY, reaching Rs 7,075 crore, while NII amounted to Rs 5,953 crore, up 21 per cent from H1 FY24. Operating profit rose to Rs 3,796 crore, also representing 21 per cent growth. The Bank’s PAT for H1 FY25 registered a 39 per cent YoY increase, standing at Rs 2,001 crore. Return on Assets (RoA) for H1 was 2.3 per cent, and Return on Equity (RoE) was 17.3 per cent.
Bandhan Bank added 7 lakh customers during Q2 FY25, taking its total customer base to over 3.5 crore, served across nearly 6,300 outlets. The Bank employs around 80,000 individuals, underscoring its commitment to expanding access to banking services nationwide.
Says Ratan Kumar Kesh, MD & CEO, Bandhan Bank, "Bandhan Bank's strong performance in the second quarter reflects the momentum in quality growth with our focus on effective risk management and compliance. Our success is anchored in the trust of our customers and the dedication of our employees. By focusing on innovation in technology, refining our processes, and enhancing products and people capabilities, we are well-positioned to drive the next phase of growth for Bandhan Bank 2.0."
Says Ratan Kumar Kesh, MD & CEO, Bandhan Bank, "Bandhan Bank's strong performance in the second quarter reflects the momentum in quality growth with our focus on effective risk management and compliance. Our success is anchored in the trust of our customers and the dedication of our employees. By focusing on innovation in technology, refining our processes, and enhancing products and people capabilities, we are well-positioned to drive the next phase of growth for Bandhan Bank 2.0."
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