Bandhan Bank Q3 Results: Net profit jumps 2.5 times to Rs 733 crore but misses analysts' expectations

Bandhan Bank Q3 Results: Bandhan Bank on Friday reported a net profit of Rs 732.7 crore for the quarter ended December 31, 2023, up 2.5 times compared with the corresponding period a year ago. 

The Kolkata-headquartered lender registered 21.4 per cent growth in net interest income (NII), or the difference between interest earned and interest paid, to Rs 2,525.4 crore, according to a regulatory filing.

According to Zee Business research, Bandhan Bank's quarterly net profit was estimated at Rs 770 crore and NII at Rs 2,540 crore.

Bandhan Bank staged improvement in its asset quality on a sequential basis. Its gross non-performing assets (GNPAs), or gross bad loans, came in at 7.02 per cent and net non-performing assets (NNPAs), or net bad loans, at 2.21 per cent of total loans for the December quarter, as against 7.32 per cent and 2.32 per cent three months ago, respectively, according to the filing.

Zee Business analysts had pegged the bank’s GNPAs at 6-6.8 per cent and NNPAs at 1.8-1.9 per cent of total loans for the fiscal third quarter.

In a quarterly update this month, Bandhan Bank said its deposits grew 14.8 per cent on a year-on-year basis to Rs 1.17 lakh crore while gross advances rose 18.6 per cent to Rs 1.16 lakh crore. 

The lender's current account and savings account (CASA) deposits grew 14 per cent to Rs 42,413 crore, and CASA ratio stood at 36.1 per cent.

Bandhan Bank shares ended higher by Rs 2.1, or one per cent, at Rs 216.3 apiece on BSE ahead of the earnings announcement.

Bandhan Bank shares: Past performance

The Bandhan Bank stock finished the December quarter over four per cent weaker than gains of 10.7 per cent and 8.3 per cent of the Nifty50 and Nifty Bank indices.

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