Bandhan Bank Q3 Results Review - Mixed Quarter; Other Income Drags Earnings: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Bandhan Bank Ltd. posted a 7% miss on profitability at Rs 7.3 billion in Q3 FY24, dragged down by muted other income. Net interest income stood broadly in line.Bandhan Bank's advances grew at a healthy rate of 20% YoY/8% QoQ, driven by robust growth in the micro finance institution and non-MFI portfolios. The MFI share in the total loan book stood at 50%, with the outstanding book currently at ~Rs 580 billion. Deposit growth was healthy at 15% YoY/4.8% QoQ, driven by 5% QoQ growth in term deposits. Current account and savings account deposits declined by 2% QoQ. The CASA ratio, thus, declined 243 basis points QoQ to 36.1%. Gross non-performing asset declined 30 bp QoQ to 7.0%, while elevated slippages (affected by system migration) were offset by recoveries and the sale of housing assets to ARC. Special mention account book declined 90 bp QoQ to 3.3%,which should reduce the slippage run rate going forward. Collection efficiency was steady at 99%. We fine-tune our earnings estimates and expect FY25E return on asset/return on equity at 2.2%/17.7%. Reiterate Neutral with a target price of Rs 245 (1.5 times Sep-25E adjusted book value)..Click on the attachment to read the full report:.Bandhan Bank Q3 Profit Jumps Over Two-Fold To Rs 733 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bandhan Bank Q3 Results Review - Mixed Quarter; Other Income Drags Earnings: Motilal Oswal

Slippages remain elevated amid system migration

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Bandhan Bank Q3 Results Review - Mixed Quarter; Other Income Drags Earnings: Motilal Oswal

Slippages remain elevated amid system migration

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