Bandhan Bank has reported 482% growth in net profit at Rs 317.89 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted 4% decline in net interest income (NII), while the core fee income of the bank also dipped 13% in Q4FY2025. The Net Interest Margin (NIM) of the bank eased to 6.70% in Q4FY2025 compared to 7.60% in the corresponding quarter of previous year.
On business front, the bank as has posted 11% growth in business with 10% increase in loan book. The asset quality of the bank was stable in Q4FY2025. Bank has reduced the credit to deposit ratio to 90.6% at end March 2025 from 92.2% at end March 2024. CASA ratio of the bank has declined to 31.4% at end March 2025 from 37.1% at end March 2024.

Asset quality stable: The bank has maintained stable asset quality in Q4FY2025.

The fresh slippages of loans stood at Rs 1750 crore in Q4FY2025 compared with 1620 crore in previous quarter and Rs 1020 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs was at Rs 350 crore and the write-off of loans was at Rs 1140 crore in Q4FY2025.

Provision coverage ratio was steady at 86.50% at end March 2025 compared to 85.40% a quarter ago and 84.50% a year ago.

The capital adequacy ratio of the bank stood at 18.7% with Tier I ratio at 17.9% at end March 2025.

Asset Quality Indicators: Bandhan Bank
'	Mar-25	Dec-24	Sep-24	Jun-24	Mar-24	Variation		'
						QoQ	YoY	'
Gross NPA (Rs Crore)	6435.56	6178.50	6105.30	5304.36	4784.88	4	34	'
Net NPA (Rs Crore)	1692.85	1636.70	1620.20	1396.43	1347.61	3	26	'
% Gross NPA	4.71	4.68	4.68	4.23	3.84	3	87	'
% Net NPA	1.28	1.28	1.29	1.15	1.11	0	17	'
% PCR	86.50	85.40	83.70	84.80	84.50	110	200	'
% CRAR - Basel III	18.71	14.54	14.34	14.97	14.69	417	402	'
% CRAR - Tier I - Basel III	17.90	13.70	13.60	14.10	13.80	420	410	'
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights:

Business growth moderates: The business growth of the bank has moderated to 11% YoY to Rs 288203 crore end March 2025 compared with 16% growth at end December 2024. The advances grew at slow pace of 10% to Rs 136990 crore. Deposits growth also moderated to 12% at Rs 151213 crore at end March 2025.

CASA deposits ratio declines: The CASA deposits of the bank declined 5% YoY to Rs 47440 crore at end March 2025. The current account deposits dipped 16% to Rs 8090 crore, while saving account deposits fell 3% to Rs 39350 crore end March 2025. The CASA ratio declined to 31.4% at end March 2025 compared to 37.1% at end March 2024, while declined from 31.7% a quarter ago. The term deposits have increased 22% to Rs 103773 crore end March 2025.

Slow loan growth: Advances growth was driven by retail loans rising 3% YoY to Rs 100650 crore at end March 2025, while credit to MSME increased 35% to Rs 36340 crore at end March 2025.

Investment book of the bank increased 39% YoY to Rs 40712 crore at end March 2025.

Margins improve: The bank has showed 30 bps YoY jump in cost of deposits to 7.20%, while yield on advances declined 70 bps YoY to 13.10% in Q4FY2025. Thus, the NIM has declined 90 bps YoY to 6.70%.

Branch expansion: The bank has added 12 branches in Q4FY2025, taking overall tally to 1715 branches and 438 ATM`s end March 2025.

Book value of the bank stood at Rs 151.2 per share at end March 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 140.6 per share at end March 2025.

Quarterly Performance

NII declines as NIM ease: Bank has recorded 5% increase in the interest earned at Rs 5433.86 crore, while interest expenses increased 15% to Rs 2677.97 crore in Q4FY2025. NII declined 4% to Rs 2755.89 crore in the quarter ended March 2025.

Fee income decline: Bank has posted 13% decline in core fee income to Rs 437 crore, while the other income declined 1% to Rs 117 crore. The bad debt recoveries jumped 82% to Rs 146 crore. The overall non-interest income was flat yoy at Rs 699.62 crore in the quarter ended March 2025.

Expenses ratio rise: The operating expenses of the bank increased 9% to Rs 1884.18 crore, as other expenses moved up 6% to Rs 799.96 crore, while employee expenses increased 12% to Rs 1084.22 crore in Q4FY2025. Cost to income ratio increased to 54.5% in Q4FY2025 compared with 48.4% in Q4FY2024, causing the Operating Profit to decline 15% to Rs 1571.33 crore.

Provisions and contingencies decline: The bank has recroded 29% decline in provisions to Rs 1260.16 crore.

Effective tax rate was negative at 2.2% in Q4FY2025 compared with positive 14.9% in Q4FY2024. Net Profit rose by 482% YoY to Rs 317.89 crore during quarter ended March 2025.

Financial Performance FY2025:

Bank has posted 23% increase in net profit to Rs 2745.29 crore in the year ended March 2025 (FY2025). The net interest income increased 11% to Rs 11490.58 crore, while non-interest income moved up 37% to Rs 2966.60 crore, pushing up net total income by 16% to Rs 14457.18 crore in FY2025. The operating expenses increased 21% to Rs 7068.50 crore, while provision and contingencies rose 2% to Rs 3765.41 crore, allowing profit before tax to increase 23% to Rs 3623.27 crore in FY2025. The cost-to-income ratio increased to 48.9% in FY2025 compared to 46.8% in FY2024. An effective tax rate was flat at 24.2% in FY2025 compared to 24.2% in FY2024. The net profit has increased 23% to Rs 2745.29 crore in FY2025.

Bandhan Bank: Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2503 (12)	Var %
Interest Earned	5433.86	5189.34	5	21948.23	18869.62	16
Interest Expended	2677.97	2329.84	15	10457.65	8550.78	22
Net Interest Income	2755.89	2859.50	-4	11490.58	10318.84	11
Other Income	699.62	700.88	0	2966.60	2171.42	37
Net Total Income	3455.51	3560.38	-3	14457.18	12490.26	16
Operating Expenses	1884.18	1721.90	9	7068.50	5850.77	21
Operating Profits	1571.33	1838.48	-15	7388.68	6639.49	11
Provisions & Contingencies	1260.16	1774.33	-29	3765.41	3696.57	2
Profit Before Tax	311.17	64.15	385	3623.27	2942.92	23
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	311.17	64.15	385	3623.27	2942.92	23
Provision for tax	-6.72	9.53	-171	877.98	713.35	23
PAT	317.89	54.62	482	2745.29	2229.57	23
EPS*(Rs)	7.9	1.4	'	17.0	13.8	'
Adj BV (Rs)	140.6	125.2	'	140.6	125.2	'
* Annualized on current equity of Rs 1610.97 crore. Face Value: Rs 10, Figures in Rs crore
Source: Capitaline Corporate Database

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