Bandhan Bank (BANDHANBNK) Q4 24/25 earnings summary

Executive summary

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

• Gross advances grew 10% YoY to Rs 1.37 lakh crore; deposits up 12% YoY to Rs 1.51 lakh crore, with retail deposits at 69%.

• Asset quality improved, with GNPA at 4.7% and NNPA at 1.3%; PCR (including technical write-offs) at 86.5%.

• Digital transformation advanced, with 98% of retail transactions and 93% of savings account openings conducted digitally.

• Board recommended a dividend of Rs 1.50 per share, reflecting confidence in future prospects.

Financial highlights

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

• Operating profit for FY25 reached Rs 7,389 crore (up 11% YoY); PAT at Rs 2,745 crore (up 23% YoY).

• Q4 FY25 net profit was Rs 318 crore, a significant increase from Rs 55 crore in Q4 FY24.

• Retail term deposits grew 30% YoY; CASA ratio at 31.4%, with retail deposits forming 69% of total deposits.

• Cost-to-income ratio for FY25 stood at 48.9%, up from 46.8% in FY24.

Outlook and guidance

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

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

• Management emphasized focus on customer-centric, digital-first solutions, expanding distribution, and asset diversification.

• Anticipates some margin moderation due to higher secured loan mix; expects operating expenses to asset ratio to rise by 10-20 bps over two years, then improve.

• Credit costs expected to remain elevated in FY26 H1, but targeted to reach 1.5%-1.6% over 2-3 years; ROA guidance of 1.8%-1.9% in the same period.