- Bandhan Bank's shares rose up to 10% after reporting a 68% YoY net profit increase to Rs 534 crore
- Gross NPA ratio improved to 3.27% from 3.33%, while net NPA ratio fell to 0.97% from 0.99%
- Gross advances rose 13% YoY to Rs 1.54 lakh crore, with total deposits up 10% YoY to Rs 1.66 lakh crore
Shares of Bandhan Bank Ltd., rose as much as 10% on Wednesday with the stock trading Rs 193.74. This comes a day after Bandhan Bank reported a 68% YoY jump in net profit for the Q4 results to Rs 534 crore. The profit is driven largely by strong performance in its retail banking and treasury segments, along with improved asset quality.
Bandhan Bank's asset quality improved during the quarter under review, with the gross non-performing assets ratio falling to 3.27% from 3.33% in the January-March period. In absolute terms, the gross NPA rose to Rs 5,019.55 crore from Rs 4,804.98 crore in the first quarter.
The net NPA ratio compressed 2 basis points to 0.97% from 0.99% in the preceding quarter. In absolute terms, the net NPA rose to Rs 1,452.09 crore from Rs 1,402.12 crore.
The improvement in retail profitability reflects stabilisation in the microfinance-led portfolio, better collection efficiency and a shift towards secured and granular lending, it said.
Gross advances rose 13% year-on-year to Rs 1.54 lakh crore, while total deposits rose 10% year-on-year to Rs 1.66 lakh crore. Retail deposits rose 46% in quarter ended March while Wholesale bank grew 33% and the housing book rose 8%.
Bandhan Bank Share Price Today
Bandhan Bank Share Price Today
Photo Credit: (Photo: NDTV Profit)
The scrip rose as much as 10% with the stock touching intraday at Rs 196.51 apiece on Wednesday at 9:42 a.m. This compares to a 0.50% rise in the NSE Nifty 50 Index.
It has risen 17.37 in the last 12 months and 34.93% year-to-date. Total traded volume so far in the day stood at 10.68 times its 30-day average. The relative strength index was at 58.23.
Out of 28 analysts tracking the company, 16 maintain a 'buy' rating, eight maintain a "hold", and four maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 186 implies a downside of 4.7%.
ALSO READ: Stock Picks Today: Bandhan Bank, Maruti, Eternal, Dalmia Bharat, REC And More On Brokerages' Radar
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
