Bandhan Bank (BANDHANBNK) Q2 24/25 earnings summary

Executive summary

• Appointment of Partha Pratim Sengupta as MD & CEO effective November 1, 2024, following RBI approval, ensuring leadership continuity.

• Loans and advances grew 21.4% year-over-year and 4% sequentially, led by secured loan growth.

• Deposits increased 27.2% year-over-year and 7% sequentially, outpacing loan growth.

• Net profit for Q2 FY25 was ₹93,744.50 lakhs, up 30% year-over-year; ROA at 2.1% and ROE at 16%.

• Strategic focus on diversification, digital transformation, and risk management, with significant investments in technology and compliance.

Financial highlights

• Net interest income grew 21% year-over-year to ₹29.5 bn; NIM at 7.4%, up 20 bps year-over-year.

• Operating profit for Q2 FY25 was ₹1,85,509.82 lakhs, up 17% year-over-year.

• Non-interest income grew 10.1% year-over-year to ₹6.0 bn in Q2FY25.

• For H1 FY25, net profit was ₹2,00,090.55 lakhs, up 39% year-over-year; CRAR at 15.6%.

• CASA ratio at 33.2%, with CASA + Retail Term Deposits at 68% of total deposits.

Outlook and guidance

• Credit cost guidance maintained at 1.8%-2% for FY25, with expectation of elevated slippages and credit costs in Q3, but improvement anticipated in Q4.

• Advances growth targeted at 18% ±1%, with EEB (microfinance) growth expected at 10%-12%.

• Management highlighted strong digital adoption, with 96% of retail transactions now digital and 88% of savings accounts opened digitally.

• Continued focus on growing secured assets and retail portfolio, leveraging digital channels and branch network.

• Capital adequacy ratio reduced to 14.34% as of September 30, 2024, due to increased risk weights on certain loan portfolios.