Bandhan Bank Q3 Results Preview: Profit likely to jump 2.6 times to Rs 770 crore with 22% NII growth

Bandhan Bank Q3 Results Preview, Bandhan Bank Q3 result 2024 date, Bandhan Bank share price NSE: Kolkata-headquartered Bandhan Bank is all set to report its financial results for the October-December period (Q3 FY24) on Friday, February 9. Analysts expect the lender to stage a strong performance on the back of robust growth across segments and improvement in asset quality. Ahead of the Q3 results, Bandhan Bank shares edge lower at Rs 213.9, down by Rs 0.25 or 0.12 per cent on NSE at 10:25 AM.

What to expect in Bandhan Bank Q3 FY24 earnings?

According to Zee Business research, Bandhan Bank is estimated to report a net profit of Rs 770 crore for the quarter ended December 31, 2023, translating into a jump of 2.6 times compared with the corresponding period a year ago. The analysts expect the bank’s net interest income (NII), or the difference between interest earned and interest paid, to grow 22.1 per cent on a year-on-year basis Rs 2,540 crore for the fiscal third quarter.

Bandhan Bank’s core net interest margin (NIM), a key measure of profitability, is pegged at 7-7.1 per cent for the December quarter, as against 7.2 per cent, according to the research.

Zee Business analysts estimate the bank’s gross non-performing assets (GNPAs), or gross bad loans, as a percentage of total loans at 6-6.8 per cent for the December quarter, as against 7.32 per cent three months ago. They expect Bandhan Bank’s net non-performing assets (NNPA) to be in the range of 1.8-1.9 per cent for the fiscal third quarter, as against 2.32 per cent for the July-September period.

Bandhan Bank Q3 update

In a business update for the quarter gone by, released 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. Its CASA deposits expanded 14 per cent to Rs 42,413 crore while the CASA ratio stood at 36.1 per cent as against 36.4 per cent a year ago.

The CASA ratio determines the proportion of deposits in a bank's low-interest paying current and savings accounts in its total deposits. A higher CASA ratio indicates a lower cost of funds, and vice versa.

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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