Bandhan Bank Q2 net up 30% at ₹ 937.44 cr

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Private sector lender Bandhan Bank on Friday reported around 30 per cent year-on-year jump in its net profit to ₹ 937.44 crore for the second quarter this fiscal as its operating profit witnessed over 17 per cent y-o-y rise during the period.

The Kolkata-based lender had posted a net profit of ₹ 721.16 crore for the first quarter last fiscal. On a quarter-on-quarter basis, net profit witnessed an 11.85 per cent decline in the period under review.

The bank’s operating profit during the second quarter of FY25 grew 17.16 per cent y-o-y at ₹ 1855.09 crore as against ₹ 1583.39 crore for the corresponding period of FY24, according to stock exchange filing.

During the quarter, Net interest income (NII) rose 20.66 per cent y-o-y to ₹2948.26 crore from ₹2443.36 crore for the year-ago period. Net interest margin increased to 7.4 per cent from 7.2 per cent in Q2FY24.

During Q2FY25, gross advances grew 21 per cent y-o-y, while deposits grew 27 per cent y-o-y.

“On a year on year basis the EEB portfolio (erstwhile microfinance segment) grew 10.6 per cent, but quarter-on-quarter we have decided to hold onto the portfolio, given the overheating and overleveraging in the microfinance industry and decided not to grow rapidly at this stage and contain portfolio quality,” Bandhan Bank MD and CEO Ratan Kumar Kesh told reporters.

“We should see a better turnaround going forward, if the market condition improves for the overall microfinance industry by the fourth quarter,” Kesh added. The lender’s collection efficiency for EEB loans was marginally lower at 98.1 per cent for the second quarter this fiscal.

Gross non-performing assets (GNPA) ratio improved to 4.7 per cent in Q2FY25 from 7.3 per cent in Q2FY24. Net NPA ratio improved to 1.3 per cent in the second quarter this fiscal compared to 2.3 per cent in the year-ago period.