Bandhan Bank (BANDHANBNK) Q1 24/25 earnings summary

Executive summary

• Leadership transition with appointment of interim MD & CEO following the founder's retirement; board-led search for a permanent CEO is ongoing.

• Profit after tax for Q1 FY25 rose 47% year-over-year to ₹1,063 crore, reflecting robust growth across key financial metrics.

• Deposits increased 23% YoY to ₹1.33 lakh crore, while gross advances grew 22% YoY to ₹1.26 lakh crore as of June 2024.

• Asset quality improved significantly, with GNPA at 4.2% (down from 6.8% YoY) and NNPA at 1.1% (down from 2.2% YoY).

• The bank added 0.8 million customers in the quarter, reaching a total of 34.4 million.

Financial highlights

• Net interest income at ₹3,005 crore, up 20.7% year-on-year; net profit at ₹1,063 crore, up 47% year-on-year.

• Net interest margin (NIM) for Q1 FY25 was 7.6%, stable sequentially and up from 7.3% YoY.

• Operating profit increased 24% YoY to ₹1,941 crore.

• Cost-to-income ratio improved to 45% from 48% in the previous quarter.

• Return on assets at 2.5% and return on equity at 18.8% (annualized).

Outlook and guidance

• NIM expected to be maintained in the 7%-7.5% range, with credit cost guidance at 1.8%-2% for FY25.

• Loan book growth guidance of 18%-20% and deposit growth to outpace advances.

• Dividend of ₹1.50 per equity share (15%) for FY24 recommended, subject to shareholder approval at the AGM.

• Management highlighted strategic agility and resilience amid challenging market conditions, emphasizing continued focus on technology, process, product, and people to sustain growth momentum.