Bandhan Bank (BANDHANBNK) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 PAT rose 47% YoY to ₹1,063 crore, driven by robust growth in deposits and advances, and improved asset quality.

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

• Unaudited financial results for Q1 ended June 30, 2024, were approved by the Board and reviewed by statutory auditors with no material misstatements.

• Added 0.8 million customers in the quarter, total customer base at 34.4 million.

• 10th Annual General Meeting scheduled for August 20, 2024, with e-voting and dividend payment arrangements detailed.

Financial highlights

• Gross advances at ₹1.26 lakh crore, up 22% YoY; deposits at ₹1.33 lakh crore, up 23% YoY; retail deposits stable at 69% of total.

• Net interest income at ₹3,005 crore, up 21% YoY; net profit at ₹1,063 crore, up 47% YoY.

• Operating profit for Q1 FY25 was ₹1,941 crore, up 24% YoY; cost-to-income ratio improved to 45% from 48% sequentially.

• Interest earned for Q1 FY25 was ₹553,582.29 lakhs, up from ₹452,291.29 lakhs in Q1 FY24.

• Provisions and contingencies for Q1 FY25 were ₹52,299.92 lakhs, down from ₹60,208.74 lakhs in Q1 FY24.

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.

• Continued focus on growing the secured asset portfolio and further geographic diversification.

• Management expects continued growth momentum, supported by technology, process, product, and people focus.