Bandhan Bank shares gain 2% on strong June quarter business update

Bandhan Bank in focus: Shares of private lender Bandhan Bank gained as much as 1.75 per cent to hit an intraday high of Rs 214.65 per share on Thursday, July 04. 

However, the shares were off highs and were trading 1.56 per cent lower at Rs 207.65 per share, at 1:22 PM. In comparison, BSE Sensex was trading 0.28 per cent higher at 80,208.04.

The uptick in share price came on the back of a strong June quarter (Q1FY25) business update. 

Bandhan Banks’ loans & advances soared 21.8 per cent year-on-year (Y-o-Y) at Rs 125,619 crore in Q1FY25, as opposed to Rs 103,169 crore in the same quarter last year (Q1FY24). It rose 0.7 per cent on a quarter-on-quarter basis from Rs 124,721 crore in Q4FY24.

The total deposits climbed 22.8 per cent on a Y-o-Y basis to Rs 133,203 crore, from Rs 108,480 crore in the same quarter a year ago. However, total deposits slipped 1.5 per cent Q-o-Q from Rs 135,202 crore in Q4FY24.

Current account and savings account (CASA) deposits jumped 13.8 per cent annually to Rs 44,453 crore, from Rs 39,077 crore in Q4FY24. CASA deposits, meanwhile, fell 11.4 per cent on a Q-o-Q basis from Rs 50,151 crore. 

Retail deposits, including CASA, jumped 19.2 per cent annually to Rs 92.104 crore, from Rs 77,240 crore. However, it slipped 1.8 per cent quarterly from Rs 93,801 crore.

The private lender’s bulk deposits zoomed 31.6 per cent on a Y-o-Y basis to Rs 41,099 crore, as against Rs 31,240 crore. It fell 0.7 per cent on a Q-o-Q basis from Rs 41,401 crore.

That apart, retail to deposits ratio stood at 69.1 per cent in Q1FY25, as opposed to 71.2 per cent in the same quarter a year ago (Q1FY24).

Furthermore, the CASA ratio of Bandhan Bank came in at 33.4 per cent in the June quarter of FY25 versus 36 per cent in the June quarter of FY24. The CASA ratio stood at 37.1 per cent in Q4FY24. 

Bandhan Bank is a banking and financial services company headquartered in Kolkata, West Bengal.

Bandhan Bank primarily serves underbanked and unbanked segments of society, focusing on microfinance for small business owners, farmers, and individuals in rural and semi-urban areas.

The bank offers a range of banking products and services, including savings accounts, current accounts, fixed deposits, loans (personal, business, and agricultural), and various financial services.

The market capitalisation of Bandhan Bank is Rs 33,242.37 crore, according to Bombay Stock Exchange (BSE).