Bandhan Bank Q2 FY25 Results: Profit jumps 30% to Rs 937 crore, beats expectations

Bandhan Bank Q2 FY25 Results: Bandhan Bank on Friday reported a net profit of Rs 937.4 crore for the July-September period, marking a 30 per cent jump on a year-on-year basis driven by a robust improvement across major financial metrics. 

Bandhan Bank's net interest income (NII)—or the difference between the interest earned and the interest paid—increased 20.7 per cent to Rs 2,948.3 crore for the second quarter of the current financial year, according to a regulatory filing. 

While the net profit was better than analysts' expectations, the net interest income failed to meet the mark.   

Bandhan Bank Q2 FY25 Earnings | Interest income 

According to Zee Business research, Bandhan Bank was estimated to log a net profit of Rs 906 crore and NII of Rs 3,050 crore.

Bandhan Bank 2.0

"Bandhan Bank's strong performance in the second quarter reflects the momentum in quality growth with our focus on effective risk management and compliance," said Ratan Kumar Kesh, MD and CEO, Bandhan Bank.

Kesh also said Bandhan Bank's success is anchored in the trust of its customers and the dedication of its 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."

Net interest margin (NIM)

The lender's net interest margin (NIM)—a key measure of profitability for financial institutions—improved to 7.4 per cent from 7.2 per cent a year ago, it said.

Bandhan Bank Q2 Results | Loans and deposits

As of September 30, Bandhan Bank's deposits stood at Rs 1.43 lakh crore while loans amounted to Rs 1.31 lakh crore, up 27 per cent and 21 per cent respectively. 

Asset quality and provisions 

Bandhan Bank reported a deterioration in its asset quality.

Its gross non-performing assets (GNPAs) as a percentage of total loans stood at 4.68 per cent for the September quarter as against 4.23 per cent for the previous three months. Its net non-performing assets (NNPAs) increased to 1.29 per cent from 1.15 per cent during this period. 

Bandhan Bank said its provisions (other than tax) and contingencies were at Rs 606 crore for Q2 of FY25 as against Rs 636 crore a year ago.

Bandhan Bank Share Price 

Earlier on Friday, Bandhan Bank shares closed lower by Rs 12.4, or 6.8 per cent, at Rs 168.3 apiece amid weakness across most sectors on Dalal Street. Benchmark indices Sensex and Nifty50 finished lower for the fifth session in a row. 

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