Bandhan Bank Q4 Results: Net Profit Plunges 93% To Rs 55 Cr, Dividend Announced

Private Lender Bandhan Bank on Friday declared a net profit of Rs 54.62 crore for the quarter that concluded on March 31, 2024, a decrease from the Rs 808.29 crore it had disclosed for the same period the previous year.

The decline in profit after tax (PAT) can be attributed to the higher provisions in Q4 FY24, which amounted to Rs 1,774 crore compared to Rs 735 crore in Q4 FY23.

During the March quarter, as a prudent measure and in accordance with its policy, the bank technically wrote off loans amounting to Rs 3,852 crore," Bandhan Bank reported. The provisions charged to the profit and loss account for the quarter stood at Rs 1,774 crore.

The bank earned Rs 5,189.34 crore in interest during the reviewed quarter, up from Rs 4,268.25 crore during the same period last year.

The Board of Directors declared a dividend of Rs. 1.50 per equity share of Rs. 10 for the year ended March 31, 2024, as against Rs. 1.50 per equity share of Rs. 10 for the previous year. This would be subject to the requisite approvals.

The Bandhan Bank net revenue for the reported quarter was Rs 3,560 crore, compared to Rs 3,101 crore in Q4 FY23, marking a 15% growth.

Net interest income (NII) for Q4 FY24 amounted to Rs 2,866 crore, showing a 16% increase from Rs 2,472 crore in Q4 FY23. Concurrently, the net interest margin (NIM) for the quarter was 7.6%, while for the full year, it stood at 7.3%.

The cost-to-income ratio for the quarter was 48%; nevertheless, after adjusting for one-off impacts, it stood at 45%.

The bank's net revenue for the quarter reached Rs 3,560 crore, compared to Rs 3,101 crore in the previous year.

Despite the initial 48% cost-to-income ratio, adjusting for one-offs brought it down to 45% for the quarter.

"The last quarter of the year is a testament to the momentum in business that we have gained. We have shown stability and growth across major parameters. The bank also strengthened its core leadership in the quarter. Bandhan Bank has been built on the unwavering commitment of its employees, and its success has been because of the trust of its customers. These cornerstones, along with the focus on tech, people, and processes, will drive the growth trajectory of Bandhan Bank 2.0." Chandra Shekhar Ghosh, MD, said in the BSE filing.

Quality of Assets

The EEB loan collection efficiency improved to an average of 99% in the quarter that concluded on March 31, 2024.

The gross non-performing assets (NPA) of the bank have decreased to 3.8% from 7.0% in Q3 of FY24. and net NPA is 1.1% in Q4 FY24 vs. 2.2% in Q3 FY24.

As of March 31, 2024, the provision coverage ratio is at 71.8%.

Deposits:

Total deposits as of March 31, 2024, were Rs. 1.35 lakh crore, up from Rs. 1.08 lakh crore the year before - an increase of 15% QoQ and 25% YoY.

With 50,151 crore in CASA deposits, the CASA Ratio was 37.1%.

The ratio of CASA + Retail TD to total deposits is more than 69%.

Advance:

Gross Advances increased by 14.3% YoY and 7.6% QoQ to Rs. 1.25 lakh crore as of March 31, 2024, from Rs. 1.09 lakh crore the year before.

Throughout the year, the housing book showed an 11% expansion while EEB grew 10% YoY.

Commercial banking increased 34% YoY, while retail books other than housing climbed 65% YoY.

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