Bandhan Bank
Asset quality under pressure: The bank has shown moderation in the asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 1550 crore in Q1FY2026 compared with 1750 crore in previous quarter and Rs 890 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs was at Rs 320 crore and the write-off of loans was at Rs 1050 crore in Q1FY2026. Provision coverage ratio improved to 87.30% at end June 2025 compared to 86.50% a quarter ago and 84.80% a year ago. The capital adequacy ratio of the bank stood at 19.1% with Tier I ratio at 18.3% at end June 2025.| Asset Quality Indicators: Bandhan Bank | |||||||
| ? | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 6622.64 | 6435.56 | 6178.50 | 6105.30 | 5304.36 | 3 | 25 |
| Net NPA (Rs Crore) | 1744.15 | 1692.85 | 1636.70 | 1620.20 | 1396.43 | 3 | 25 |
| % Gross NPA | 4.96 | 4.71 | 4.68 | 4.68 | 4.23 | 25 | 73 |
| % Net NPA | 1.36 | 1.28 | 1.28 | 1.29 | 1.15 | 8 | 21 |
| % PCR | 87.30 | 86.50 | 85.40 | 83.70 | 84.80 | 80 | 250 |
| % CRAR - Basel III | 19.08 | 18.71 | 14.54 | 14.34 | 14.97 | 37 | 411 |
| % CRAR - Tier I - Basel III | 18.30 | 17.90 | 13.70 | 13.60 | 14.10 | 40 | 420 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
Business Highlights:
Steady business growth: The business of the bank has increased 11% YoY to Rs 288290 crore end June 2025, driven by 16% jump in deposits rose 16% to Rs 154670 crore. Advances increased 6% to Rs 133620 crore. at end June 2025.
CASA deposits ratio declines: The CASA deposits of the bank dipped 6% YoY to Rs 41860 crore at end June 2025. The current account deposits increased 5% to Rs 6470 crore, while saving account deposits fell 8% to Rs 35390 crore end June 2025. The CASA ratio declined to 27.1% at end June 2025 compared to 33.4% at end June 2024, while declined from 31.4% a quarter ago. The term deposits have increased 27% to Rs 112810 crore end June 2025.
Loan growth moderates: Advances growth was driven by retail loans rising 78% YoY to Rs 11100 crore at end June 2025, while mortgage credit increased 11% to Rs 32660 crore and commercial credit jumped 32% to Rs 37050 crore. On the other hand, the microfinance credit declined 15% to Rs 52810 crore end June 2025.
Investment book of the bank increased 15% YoY to Rs 38290 crore at end June 2025.Margins dip: The bank has shown flat YoY cost of deposits at 7.00%, while yield on advances dipped 120 bps YoY to 12.70% in Q1FY2026. Thus, the NIM has declined 120 bps YoY to 6.40% in Q1FY2026.
Branch expansion: The bank has added 35 branches in Q1FY2026, taking overall tally to 1750 branches and 438 ATM`s end June 2025.
Book value of the bank stood at Rs 153.6 per share at end June 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 142.7 per share at end June 2025.
Quarterly Performance
NII decline as NIM dips: Bank has recorded 1% decline in the interest earned at Rs 5475.61 crore, while interest expenses increased 7% to Rs 2718.37 crore in Q1FY2026. NII dipped 8% to Rs 2757.24 crore in the quarter ended June 2025.
Moderate growth in the core fee income: Bank has posted 1% growth in core fee income to Rs 285 crore, while the recoveries and other income rose 5% to Rs 133 crore. However, the treasury income surged 696% to Rs 251 crore, leading to 38% jump in the overall non-interest income to Rs 725.88 crore in the quarter ended June 2025.
Expenses ratio jumps: The operating expenses of the bank increased 14% to Rs 1814.72 crore, as other expenses moved up 18% to Rs 691.11 crore, while employee expenses increased 12% to Rs 1123.61 crore in Q1FY2026. Cost to income ratio increased to 52.1% in Q1FY2026 compared with 45.1% in Q1FY2025, leading to 14% decline in the Operating Profit to Rs 1668.40 crore.
Provisions and contingencies surges: The bank has shown 119% jump in provisions to Rs 1146.91 crore.
Effective tax rate rose to 28.7% in Q1FY2026 from 25.0% in Q1FY2025. Net Profit dipped 65% YoY to Rs 371.96 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 23% increase in net profit to Rs 2745.29 crore in the year ended March 2025 (FY2025). The net interest income increased 11% to Rs 11490.58 crore, while non-interest income moved up 37% to Rs 2966.60 crore, pushing up net total income by 16% to Rs 14457.18 crore in FY2025. The operating expenses increased 21% to Rs 7068.50 crore, while provision and contingencies rose 2% to Rs 3765.41 crore, allowing profit before tax to increase 23% to Rs 3623.27 crore in FY2025. The cost-to-income ratio increased to 48.9% in FY2025 compared to 46.8% in FY2024. An effective tax rate was flat at 24.2% in FY2025 compared to 24.2% in FY2024. The net profit has increased 23% to Rs 2745.29 crore in FY2025.| Bandhan Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 5475.61 | 5535.82 | -1 | 21948.23 | 18869.62 | 16 |
| Interest Expended | 2718.37 | 2530.80 | 7 | 10457.65 | 8550.78 | 22 |
| Net Interest Income | 2757.24 | 3005.02 | -8 | 11490.58 | 10318.84 | 11 |
| Other Income | 725.88 | 527.54 | 38 | 2966.60 | 2171.42 | 37 |
| Net Total Income | 3483.12 | 3532.56 | -1 | 14457.18 | 12490.26 | 16 |
| Operating Expenses | 1814.72 | 1591.67 | 14 | 7068.50 | 5850.77 | 21 |
| Operating Profits | 1668.40 | 1940.89 | -14 | 7388.68 | 6639.49 | 11 |
| Provisions & Contingencies | 1146.91 | 523.00 | 119 | 3765.41 | 3696.57 | 2 |
| Profit Before Tax | 521.49 | 1417.89 | -63 | 3623.27 | 2942.92 | 23 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 521.49 | 1417.89 | -63 | 3623.27 | 2942.92 | 23 |
| Provision for tax | 149.53 | 354.43 | -58 | 877.98 | 713.35 | 23 |
| PAT | 371.96 | 1063.46 | -65 | 2745.29 | 2229.57 | 23 |
| EPS*(Rs) | 9.2 | 26.4 | ? | 17.0 | 13.8 | ? |
| Equity | 1611.0 | 1611.0 | ? | 1611.0 | 1611.0 | ? |
| Adj BV (Rs) | 142.7 | 133.7 | ? | 140.6 | 125.2 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
Powered by Capital Market - Live News