Bandhan Bank shares made gap up opening, breaking the falling channel line to the upside following the release of its quarterly results. The Nifty bank index is up more than 1.5% because of better than expected first quarter results, due to rapid loan growth and healthy core lending income.
On year over year basis, bank’s total deposit was up 23%, while total advances were up 22%. Bandhan bank’s loans and advances grew by 21.8% Y-o-Y supported by all round growth across verticals, whereas deposits grew 22.8% Y-o-Y, higher than the advances growth. Deposit on quarterly basis has fallen by 1.4%. Deposit has seen 9% rise from q-o-q in term deposit from retails to Rs. 476.5 billion, while rails saving bank deposit has witnessed fall of 5% on quarterly basis. Saving deposit in this digital age is considered more vulnerable and a big amount can enters and get withdraws from bank in no time. Term deposit from others sources has seen miniscule fall of 0.07% on quarterly basis. CASA ratio on yearly basis has fallen by 2.6% whereas the ratio has fallen by 3.7% on quarterly basis. Bank has launched 500 odd branches over the last 18 months, which should help deliver CASA growth.
Bandhan Bank's gross NPAs to gross advance was at 4.23% as on 30 June 2024 as compared to 6.76% as on 30 June 2023. Net NPAs to net advances declined to 1.15% as on 30 June 2024 as against 2.18% as on 30 June 2023. Provisions other than tax and contingencies declined to ₹523 crore against ₹602 crore earmarked during the same quarter a year ago. The provision coverage ratio as of 30 June 2024 was at 73.7%.
Cost to income has been easing on quarterly and yearly basis. Cost to Income has come down to 45.1% Q125 as compared 48.4% on quarterly basis and 45.7% on yearly basis. Credit cost has easing on both quarterly and yearly basis. The bank's net interest margin (NIM) remained stable, and operating expenses were in line with market expectations.
The bank posted a 47% jump in its net profit to ₹1,063 crore for the June 2024 quarter due to a decline in bad loans. The lender had earned a net profit of ₹721 crore in the year-ago period. The bank's total income increased to ₹6,063 crore against ₹4,908 crore a year ago.
The bank share has been falling since August 2018 after making double top formation. The shares of Bandhan bank has been trading 10% positive at Rs. 213 intraday.
