Bandhan Bank Q3 Results | Net profit tanks 42% to ₹427 crore, NII up 12% to ₹2,830 crore

Private lender Bandhan Bank on Friday (January 31) reported a 41.8% year-on-year (YoY) decline in net profit at ₹426.5 crore for the third quarter that ended December 31, 2024. In the corresponding quarter of the previous fiscal, Bandhan Bank posted a net profit of ₹732.7 crore, the bank said in a regulatory filing.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 12.1%, coming at ₹2,830.3 crore against ₹2,525.4 crore in the corresponding quarter of FY24.

The gross non-performing asset (GNPA) was flat at 4.68% in December. Net NPA came at 1.28% against 1.29% quarter-on-quarter. Gross advances grew 14% YoY to ₹1.32 lakh crore as of December 31, 2024, compared to ₹1.16 lakh crore in the previous year.

Also Read: IndusInd Bank Q3 Results: Profit beats estimates but falls 39% on-year; NPAs riseBandhan Bank reported a net revenue of ₹3,926 crore in Q3 FY25, marking a 28% year-on-year (YoY) increase from ₹3,071 crore in Q3 FY24. The bank’s Net Interest Margin (NIM) for the quarter stood at 6.9%, down from 7.2% in the same period last year. Operating profit rose 22% YoY to ₹2,021 crore from ₹1,655 crore in Q3 FY24.

Provisions (excluding tax) and contingencies for Q3 FY25 were ₹1,376 crore, significantly higher than ₹684 crore in Q3 FY24. The bank’s Return on Assets (RoA) for the quarter stood at 0.9%, while Return on Equity (RoE) was 7% on an annualized basis.The collection efficiency for EEB loans declined slightly to 97.4% for Q3 FY25. The Provision Coverage Ratio (PCR), including technical write-offs, improved to 85.4% as of December 31, 2024, compared to 70.2% a year ago.

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Total deposits reached ₹1.41 lakh crore as of December 31, 2024, reflecting a 20% YoY increase from ₹1.17 lakh crore. CASA deposits stood at ₹44,735 crore, with a CASA ratio of 32%. The share of CASA and retail term deposits in total deposits stood at approximately 69%.

The retail book (excluding housing) expanded by 95% YoY, commercial banking grew by 38%, and the housing portfolio saw a 13% increase (19% YoY excluding IBPC).

The bank’s distribution network includes nearly 6,300 outlets, supported by a workforce of approximately 78,400 employees. The results came after the close of the market hours. Shares of Bandhan Bank Ltd ended at ₹151.45, up by ₹3.25, or 2.19% on the BSE.