Fall in provisions pushed Bandhan Bank Ltd.'s standalone net profit to a nearly sixfold jump in the fourth quarter of the financial year 2024-25, but still missed analysts' estimates.
The bottom line of the Kolkata-headquartered lender rose 481% to Rs 317 crore versus Rs 54.6 crore in the year-ago period, according to financial results released on Wednesday. Analysts' consensus estimates compiled by Bloomberg estimated Rs 467 crore.
The provisions (other than tax) and contingencies were lower by 29% at Rs 1,260 crore compared to Rs 1,774 crore in the March quarter of FY24. On a sequential basis, it fell 8.41%.
The net interest income declined 4% to Rs 2,756 crore. Net interest margin for the quarter was 6.7%.
Asset quality marginally deteriorated with the share of gross non-performing assets rising to 4.71% from 4.68% in the previous quarter. Net NPA stood flat at 1.28%.
As of March 31, 2025, the bank's total deposits grew 12% year-over-year to Rs 1.51 lakh crore, with current account and savings account deposits standing at Rs 47,437 crore and a CASA ratio of 31.4%.
Gross advances increased 10% year-over-year to Rs 1.37 lakh crore. The bank saw significant growth in its retail book (98% YoY, excluding housing), wholesale banking (35%), and housing book (11%).
Bandhan Bank executives said in an earnings concall with analysts that the lender aims to expand its asset book and improve asset quality in FY26. The bank is aiming a 15–17% loan growth over the next three years.
Bandhan Bank's board recommended a dividend of Rs 1.5 apiece for the financial year ended March 31 for the approval of shareholders at the annual general meeting.
Shares of Bandhan Bank closed 1.31% lower at Rs 165.65 apiece ahead of the announcement, compared to a flat BSE Sensex. The stock has fallen 23% in the last 12 months and gained 5% so far this year.
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