Bandhan Bank Q2 Updates: Total Deposits Rise 27.2%
The bank reported a 21.4% advance in loans and advances at Rs 1.31 lakh crore in the second quarter
Private lender Bandhan Bank. (Photographer: Anirudh Saligrama/NDTV Profit)
Bandhan Bank Ltd.'s total deposits rose 27.2% on a yearly basis to Rs 1.43 lakh crore in the July-September quarter, according to provisional figures released by the bank.
The bank reported a 21.4% advance in loans and advances at Rs 1.31 lakh crore in the second quarter, compared to Rs 1.08 lakh crore in the same period last year, according to provisional quarterly business updates filed with stock exchanges on Friday.
CASA ratio—the proportion of deposits that come from low-cost current and savings accounts—marginally dipped to 33.2% from 38.5% in the year ago period. A lower CASA ratio indicates that the bank relies heavily on costlier wholesale funding, which can hurt the bank's margins.
Retail deposits including CASA stood at Rs 96,603 crore, up 4.9% from Rs 82,981 crore reported in the same quarter previous year. The bulk deposits also rose 11.7% year-on-year to Rs 29,098 crore.
The liquidity coverage ratio as on June 30, 2024, was at 162.1%.
Bandhan Bank's Chief Audit Executive Ravi Lahoti resigned in September as he has decided to pursue alternate opportunities. He would continue to serve until his last working day with the bank on Dec. 21.
In the first quarter, Bandhan Bank's profit rose 47.4% year-on-year to Rs 1,063.4 crore, beating analysts' estimates. Net interest income, rose 20.6% year-on-year to Rs 3,005.1 crore. Other income also saw a 36.9% rise to Rs 527.5 crore on a yearly basis.
Asset quality for the lender worsened, with gross non-performing asset ratio rising 39 basis points quarter-on-quarter to 4.23%. Net NPA ratio also worsened 4 bps to 1.15%, as compared to 1.11% in the previous quarter.
Shares of Bandhan Bank fell as much as 1.32% during the day to Rs 186.52 apiece on the NSE. However, it pared the gains to close 1.14% lower at Rs 186.86, compared to a 0.79% decline in the benchmark Nifty 50.
The stock has fallen by 26.39% in the last 12 months and by 23.45% year-to-date.
Out of 27 analysts tracking the company, 15 maintain a 'buy' rating, seven recommend a 'hold,' and five suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 17.8%.
