Bandhan Bank Reports Strong Q3: Loans Up 18.6%, Deposits 14.8%

Bandhan Bank observed significant growth in its loan portfolio during the third quarter of FY24, marking an 18.6 per cent increase year-on-year and a 7.7 per cent rise quarter-on-quarter. This growth included diverse components such as on-book, off-book, TLTRO and PTC, alongside a reduction of Rs 720 crore in the NPA portfolio post a sale to an ARC.

As per the regulatory filings, the bank's total deposits reached Rs 117,422 crore by 31 December, 2023, marking a notable 14.8 per cent year-on-year escalation and a 4.8 per cent quarter-on-quarter surge.

CASA deposits, despite experiencing a slight 1.8 per cent decline quarter-on-quarter, remained robust at Rs 42,413 crore. Retail deposits showed notable growth, reaching Rs 84,563 crore, denoting a 19.0 per cent year-on-year and a 1.9 per cent quarter-on-quarter rise, inclusive of CASA deposits. In contrast, bulk deposits observed a significant 12.9 per cent quarter-on-quarter surge, reaching Rs 32,859 crore.

The deposit composition showcased that retail deposits accounted for a substantial 72 per cent of the total, signifying a notable contribution from retail customers. However, the CASA ratio saw a minor decline, settling at 36.1 per cent by the quarter's end.

Regarding collection efficiency, both the EEB and Non-EEB segments maintained robust levels, sustaining a collection efficiency of 98 per cent by 31 December 2023. The overall Pan Bank Collection Efficiency (Excluding NPA) remained steady at 98 per cent.

In terms of stock performance, Bandhan Bank opened slightly higher at Rs 255.50 apiece on the Bombay Stock Exchange (BSE) on 4 January and witnessed an intraday increase of nearly 1.37 per cent, reaching Rs 257.50 apiece.