Bandhan Bank Ltd. (NSE: BANDHANBNK): Q3 FY23 Results Out; Total Income rises 17% YoY

Bandhan Bank Ltd. (NSE:BANDHANBNK) is an Indian banking and financial services company based in Kolkata, India. It was established in 2015 as a subsidiary of Bandhan Financial Holdings, with the goal of providing a range of financial services to underserved and underbanked sections of society, particularly low-income households in rural and semi-urban areas. The bank offers a variety of retail and wholesale banking services, including savings and current accounts, fixed deposits, home loans, personal loans, and microfinance loans. With a strong focus on responsible and sustainable banking practices, Bandhan Bank has grown rapidly and has a significant presence in India, with over 9 million customers and over 1,000 branches across the country.

Bandhan Bank, an Indian private sector bank, has announced its results for Q3FY23. The bank reported strong growth in its loan portfolio and deposits, which grew by 11.1% YoY and 21.0% YoY respectively. The Gross Non-Performing Assets (GNPA) improved to 7.2% in Q3FY23, compared to 10.8% in the same quarter the previous year. This improvement in asset quality was reflected in the bank’s net non-performing assets (NPAs), which improved to 1.9% in Q3FY23 from 3.0% in Q3FY22. The Provision Coverage Ratio (PCR) for Q3FY23 stood at 75.4%, compared to 74.4% in the same quarter last year. During the quarter, the bank’s loan and advances grew by 14% YoY to reach INR 100,520 crore while total deposits rose by 21% YoY to INR 1,02,283 crore. The growth in loan and advances was supported by an increase of 5% sequentially from INR 95,835 crore in Q2FY23. Retail term deposits increased by 3% YoY to INR 33,856 crore, while bulk deposits rose by 139% YoY to INR 31,233 crore.

The bank’s capital adequacy ratio (CRAR) at the end of Q3FY23 was 19.1%, with Tier I at 18.1% and CRAR (including profit) at 20.6%. The Profit Before Provisions and Operating Expenses (PPOP) for Q3FY23 increased by 23.8% QOQ to reach Rs 1,922 crore. The cost to income ratio for Q3FY23 was 38.3%, compared to 41.8% in the previous quarter. As of December 31, 2022, Bandhan Bank had 5,723 banking outlets, including 1,250 branches and 4,473 banking units. The number of employees at the bank increased from 64,078 to 66,114 during the quarter.

Chandra Shekhar Ghosh, MD & CEO of Bandhan Bank, commented on the results, stating that the bank had registered good growth in the third quarter and that the worst was behind the bank in terms of asset quality and stress. He added that the bank was well positioned for its next phase of growth, with a diversification agenda in place and a favorable operating environment.

Bandhan Bank showed strong growth in its loan and deposit portfolios during Q3FY23, with a YoY growth of 14% and 21% respectively. Despite a decline in CASA deposits, the bank saw a rise in retail term deposits and bulk deposits. The bank’s gross NPA and net NPA improved, and the capital adequacy ratio remained healthy. The bank’s pan bank collection efficiency also improved during the quarter. These results indicate a positive trend for Bandhan Bank, with the bank’s CEO expressing confidence in continued growth in the future.