Bandhan Bank (BANDHANBNK) Q3 24/25 earnings summary

Executive summary

• New MD & CEO appointed effective November 2024, emphasizing Bandhan 2.0 strategy and digital transformation.

• Gross advances grew 13.9% year-over-year, led by a 34% YoY increase in secured loans; non-EEB book now ~58% of advances, up 30% YoY.

• Deposits rose 20.1% YoY, with retail term deposits up 26% YoY; CASA ratio at 31.7%.

• Unaudited financial results for Q3 and nine months ended December 31, 2024, were approved by the Board on January 31, 2025.

• Transformation Management Team, Digital and Transaction Excellence Unit, and Market Intelligence Team established to drive innovation and operational efficiency.

Financial highlights

• Gross advances at INR 1.32 lakh crore, up 14% year-on-year; deposits at INR 1.41 lakh crore, up 20% year-on-year.

• Net total income for Q3 FY25 at INR 3,926 crore, up 28% year-on-year, including one-off gains of INR 538 crore (CGFMU) and INR 52 crore (Assam government).

• Q3 total income rose to ₹657,458 lakhs, up from ₹521,060 lakhs in Q3 last year; nine-month income at ₹1,873,247 lakhs, up from ₹1,515,081 lakhs year-over-year.

• PAT for Q3 FY25 at INR 426 crore; nine-month PAT at INR 2,427 crore, up 12% year-on-year.

• Operating profit for Q3FY25 at ₹20.2 bn, up 22.2% YoY; 9MFY25 operating profit at ₹58.2 bn, up 21.2% YoY.

Outlook and guidance

• Secured asset mix targeted to exceed 55% by FY27, with EEB growth to continue at a moderated pace.

• NIM expected to moderate further as secured book grows, but focus remains on maintaining ROA near 2%.

• Capital adequacy ratio reduced to 14.54% as of December 31, 2024, following revised risk weights for certain loan portfolios.

• Credit cost targeted at 2% in the near term, with expectations to decline to 1.5%-1.6% by FY27 as portfolio shifts to secured assets.

• Impact of new investment portfolio classification norms and share-based payment accounting changes noted; future comparability affected.