Bandhan Bank Q4 results: Profit jumps 482% to ₹318 cr, revenue at ₹3,456 cr

Bandhan Bank on Wednesday reported a 482 per cent year-on-year increase in net profit to Rs 317.90 crore in the January–March quarter (Q4FY25) on the back of lower provisions, even as net interest income (NII) saw a 4 per cent dip. Net profit in the year-ago period had stood at Rs 54.62 crore.

 

Sequentially, net profit was down 25.4 per cent.

 

The bank’s operating profit was at Rs 1,571 crore in Q4FY25 compared to Rs 1,838 crore in Q4FY24, as the EEB (Emerging Entrepreneurs Business, which includes microfinance) portfolio saw a decline.

 

Net revenue for Q4FY25 was Rs 3,456 crore compared to Rs 3,560 crore in Q4FY24.

 

 

NII — the difference between interest earned and interest expended — for Q4FY25 stood at Rs 2,756 crore compared to Rs 2,859 crore in Q4FY24.

 

Partha Pratim Sengupta, managing director and chief executive officer, Bandhan Bank, said the microfinance sector has faced a bit of stress and overall liquidity tightening in the system has impacted both growth and profitability at an industry level.

 

However, he expects a gradual improvement in the MFI segment in the coming months on the back of recent regulatory and monetary actions.

 

“In the quarter, while loan growth and profitability showed moderate progress versus guidance, we remain encouraged by the continued resilience across the operational metrics,” Sengupta said.

 

Provisions and contingencies in Q4FY25 were lower at Rs 1,260 crore compared to Rs 1,774 crore in Q4FY24.

 

Net interest margin (NIM) for the quarter was 6.7 per cent, 96 basis points lower than the year-ago period. Sengupta pointed out that despite the stress in microfinance, for the full year FY25, the bank had delivered a “reasonably strong performance”.

 

“We are one of the very few financial institutions who have a sizeable microfinance portfolio, but have shown year-on-year growth in almost all the parameters if we consider the full-year performance,” he said.

 

The bank’s net revenue for FY25 was Rs 14,458 crore, a growth of 16 per cent Y-o-Y. NII for FY25 at Rs 11,491 crore was higher by 11 per cent Y-o-Y. Operating profit at Rs 7,389 crore in FY25 was up 11 per cent Y-o-Y, while net profit at Rs 2,745 crore was higher by 23 per cent Y-o-Y.

 

Roadmap 

Highlighting the strategic priorities for the next 2–3 years, Sengupta said, “Over the next couple of years, our strategic priority will centre on achieving deposit growth that outpaces advances growth, with a strong emphasis on stable granular retail deposits.”

 

The bank is targeting advance growth of 15–17 per cent CAGR over the next 2–3 years, with a strategic focus on increasing the secured base.

 

“We expect secured advances to constitute over 55 per cent of total advances by FY27. While both the secured portfolio and the EEB book are expected to grow, the secured book will grow at a relatively higher pace,” Sengupta said, adding that the growth trajectory of the EEB portfolio would align with prevailing economic conditions.

 

In Q4FY25, deposits outpaced advances. Gross advances stood at Rs 1.37 trillion, while total deposits stood at Rs 1.51 trillion.