Bandhan Bank jumps over 9% after profits soars 30% in Q2FY25 results

Bandhan Bank shares jumped 9.74 per cent at Rs 184.40 per share on the BSE in Monday’s intraday deals. This came after the bank reported a steady quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25). 

 

Private lender Bandhan Bank Ltd reported a 30 per cent year-on-year surge in net profit for the second quarter ending September 30, 2024 (Q2FY25), reaching Rs 937.4 crore, up from Rs 721.2 crore in the same quarter last year. 

 

Net interest income (NII), which reflects the difference between interest earned from lending and interest paid to depositors, rose by 20.7 per cent to Rs 2,948.2 crore, compared to Rs 2,443.4 crore in Q2 FY24. However, the gross non-performing asset (GNPA) ratio increased to 4.68 per cent in the September quarter, up from 4.23 per cent in the June quarter. The net NPA ratio also rose to 1.29 per cent from 1.15 per cent quarter-on-quarter.

 

In monetary terms, gross NPA stood at Rs 6,105.3 crore, compared to Rs 5,304.4 crore in the previous quarter, while net NPA increased to Rs 1,620.2 crore from Rs 1,396.4 crore.

 

For the first half of FY25, Bandhan Bank reported an operating profit of Rs 3,796 crore, marking a 21 per cent increase from Rs 3,146 crore in H1 FY24. Provisions (excluding tax) decreased to Rs 1,129 crore from Rs 1,238 crore in the same period last year. The bank’s annualized Return on Assets (RoA) and Return on Equity (RoE) stood at 2.3 per cent and 17.3 per cent, respectively, for the half-year ending September 2024. 

 

Capital adequacy, including profits, was reported at 15.6 per cent, exceeding the regulatory requirement of 11.5 per cent. As of Q2 FY25, Bandhan Bank's net revenue reached Rs 3,543 crore, reflecting a 19 per cent increase from Rs 2,984 crore in Q2 FY24. The bank's Net Interest Margin (NIM) improved slightly to 7.4 per cent, up from 7.2 per cent in the same period last year.

 

The company has a total market capitalisation of Rs 29,585.48 crore. Its shares are trading at a price to earnings multiple of 10.54  times and at an earning per share of Rs 15.97. 

 

At 11:38 AM, the stock price of the company was up 9.12 per cent at Rs 183.65 a piece on the BSE. By comparison, the BSE’s Sensex surged 1.05 per cent to 80,237.05 level.