Bandhan Bank shares Q2 update; advances up 12.3%, deposits 12.8%

Bandhan Bank: Advances stood at Rs 1,07,633 crore compared with Rs 95,835 crore in the corresponding quarter last year. They were up 4.3 per cent over June quarter’s Rs 1,03,169 crore.

Shares of Bandhan Bank will be in focus on Thursday morning after the private bank in a business update said its total deposits grew 12.8 per cent in the September quarter while its loan and advances were up 12.3 per cent during the same period. In a filing to BSE post Wednesday’s trading hours, the bank said its deposits rose to Rs 1,12,074 crore at the end of September quarter against Rs 99,366 crore in the same quarter last year. Deposits were up 3.3 per cent over June quarter’s Rs 1,08,480 crore, the bank informed BSE.

Advances, on the other hand, stood at Rs 1,07,633 crore compared with Rs 95,835 crore in the corresponding quarter last year. They were up 4.3 per cent over June quarter’s Rs 1,03,169 crore.

CASA deposits rose 6.5 per cent YoY to Rs 43,161 crore from Rs 40,520 crore while retail deposits (including CASA) were up 12.6 per cent YoY to Rs 82,977 crore from Rs 73,661 crore in the same quarter last year. Bulk deposit came in at Rs 29,098 crore against Rs 25,705 crore, up 13.2 per cent YoY. CASA ratio stood at 38.5 per cent against 36 per cent in June and 40.8 per cent in the year-ago quarter.

Pan bank collection efficiency (excluding NPA) stood at 98 per cent, the same as June quarter. Liquidity coverage ratio (LCR) as on September 30, 2023 stands at 162.90 per cent.

In its Q2 preview note, Nuvama Institutional Equities said despite weak earnings in the June quarter, shares of Bandhan Bank have jumped 17 per cent on account of media reports that the new ED joining Bandhan Bank will be from HDFC Bank. :”Bandhan is likely to get a new ED soon. It is highly probable that it will be from a large private bank. However, the purpose of having one more ED is to strengthen the management team. Hence, it is unlikely to be a management transformation story like MMFS,” Nuvama said as it suggested a ‘Hold’ on the stock.

“Bandhan gave a strong update with loans growing 4 per cent QoQ and deposits 3 per cent,” it said while expecting NIM for Q2 may decline 12 basis points QoQ.

“Opex to rise with higher spends in the quarter despite weak loan growth. Write-offs will determine the level of credit cost. We assume flat QoQ credit cost. Slippage to remain elevated. Ex-ECLGS, slippage in Q1FY24 was at Rs 1,300 crore. We reckon it will remain at this level in Q2FY24 as well,” the brokerage said.

With Thanks Reference to: https://www.businesstoday.in/markets/company-stock/story/bandhan-bank-shares-q2-update-advances-up-123-deposits-128-400793-2023-10-05