Bandhan Bank Shares Gain for 4th Consecutive Session on Feb 24, 2025– What’s Driving the Rally?

Bandhan Bank’s share price traded at ₹139.77 at 11:AM on the NSE as of February 24, 2025, reflecting a modest gain of ₹0.39 (0.28%) from its previous close of ₹139.38. The stock opened at ₹138.90, reached an intraday high of ₹140.21, and touched a low of ₹138. The stock has gained close to 7% in the last three trading sessions.

Microfinance Sector Outlook Improves

Market expectations for the Indian microfinance sector have improved, with prediction of a gradual recovery over the next few quarters. The sector is expected to transition from its current weak state to a more stable position within 1-2 quarters and return to normalcy by Q2FY26. 

As per news reports, given these positive trends, Bandhan Bank is well-positioned to benefit from the sector’s revival and capitalise on emerging growth opportunities.

Bandhan Bank Q3 FY25 Financial Highlights

Private sector lender Bandhan Bank reported a 41.8% year-on-year (YoY) decline in net profit for the third quarter ending December 31, 2024, with earnings falling to ₹426.5 crore from ₹732.7 crore in the same period last year. The bank disclosed these figures in its regulatory filing on January 31, 2025.

Despite the drop in profitability, net interest income (NII)—which represents the difference between interest earned on loans and interest paid on deposits—saw a 12.1% increase, reaching ₹2,830.3 crore, up from ₹2,525.4 crore in Q3 FY24.

On the asset quality front, the gross non-performing asset (GNPA) ratio remained stable at 4.68%, while net NPA showed a marginal improvement, declining to 1.28% from 1.29% on a quarter-on-quarter basis.

Bandhan Bank’s gross advances recorded 14% YoY growth, rising to ₹1.32 lakh crore as of December 31, 2024, compared to ₹1.16 lakh crore in the previous year, reflecting steady loan book expansion.

Conclusion

Bandhan Bank’s continued rally reflects improving market sentiment, supported by a more optimistic outlook for the microfinance sector. 

Despite recent profit declines, the bank’s strong loan book growth and stable asset quality indicate resilience.  Investors will closely monitor further improvements in financial performance and collection efficiency, which could drive sustained momentum in the stock.

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