Bandhan Bank Share Price Hits 52-Week Low; Releases Q3 Business Updates

Bandhan Bank’s share price hit a fresh 52-week low, falling 2.36% to ₹154 at 11:35 AM on the BSE, after opening at ₹158.85, higher than the previous close of ₹157.70.

Strong Loan Growth and Shifts in Deposit Mix

In Bandhan Bank’s latest business updates, the most notable change was seen in loans and advances, which increased by 15.0% YoY to ₹133,285 crore, reflecting strong growth.

On the other hand, CASA deposits showed a more modest 5.5% increase to ₹44,735 crore, with a slight decline of 5.4% on a sequential basis. The CASA ratio also saw a drop from 36.1% last year to 31.7%, indicating a shift toward bulk deposits.

The bulk deposits grew 31.0% YoY but declined by 3.7% sequentially. Additionally, the retail to total deposits ratio slightly improved from 67.8% to 68.6%.

The Liquidity Coverage Ratio (LCR) stood strong at 164.6%, highlighting the bank’s solid liquidity position.

Q2 FY25 Financial Performance

In Q2 FY25, Bandhan Bank reported a standalone net profit of ₹937.44 crore, marking a 29.99% increase from ₹721.16 crore in Q2 FY24. The total income for the quarter grew by 21.11%, reaching ₹6,094.53 crore, up from ₹5,032.18 crore in the same period last year.

Bandhan Bank saw a notable improvement in its Net Interest Margin (NIM), which increased to 7.4% from 7.2% in Q2 FY24, reflecting enhanced efficiency in earning income from its assets relative to its liabilities. This rise in NIM is indicative of the bank’s strong ability to generate returns from its lending activities.

Additionally, the bank’s Gross NPA improved significantly, decreasing to 4.7% from 7.3% in Q2 FY24, signalling better asset quality and effective management of non-performing loans. Similarly, the Net NPA ratio also showed a marked improvement, dropping to 1.3% from 2.3% in the previous year, highlighting the bank’s success in reducing bad loans and maintaining a healthier balance sheet.

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