Bandhan Bank (BANDHANBNK) Q4 24/25 earnings summary

Executive summary

• Net profit for FY25 rose 23% year-over-year to Rs 2,745 crore, with Q4 PAT at Rs 318 crore, up 483% YoY; operating profit up 11% YoY.

• Gross advances grew 10% YoY to Rs 1.37 lakh crore, with a strategic shift toward secured lending and non-EEB segments.

• Deposits increased 12% YoY to Rs 1.51 lakh crore, with retail deposits comprising 69% of the total.

• Asset quality remained stable with gross NPA at 4.7% and net NPA at 1.3% for Q4.

• Board recommended a dividend of INR 1.50 per share, subject to shareholder approval.

Financial highlights

• Net interest income for FY25 was INR 11,491 crore, up 11% YoY; net total income at INR 14,458 crore, up 16%.

• Operating profit for FY25 reached INR 7,389 crore, up 11% YoY; profit after tax at INR 2,745 crore, up 23%.

• Q4 net profit was INR 318 crore, a significant increase from INR 55 crore in Q4 FY24.

• Net interest margin for Q4 was 6.7%, down from 6.9% in Q3; full-year NIM at 7.1%.

• CASA ratio at 31.4%; cost-to-income ratio for FY25 at 48.9%, up from 46.8% in FY24.

Outlook and guidance

• Targeting advances growth of 15%-17% CAGR over the next three years, with secured advances expected to exceed 55% by FY27.

• Management focus on digital transformation, operational efficiency, and expanding secured lending.

• Liability growth to outpace advances, focusing on granular retail deposits and reducing bulk deposit reliance.

• Credit costs projected to remain elevated in H1 FY26, targeting 1.5%-1.6% over the next two to three years.

• ROA expected to improve to 1.8%-1.9% in two to three years, driven by better asset quality and operating leverage.