Bandhan Bank Eastern Region Deposit Share Falls to 49% by Jun '24

Bandhan Bank has reported a decrease in its deposit share from the Eastern region. According to the latest data, the Eastern region's contribution to the bank’s total deposits fell to 49% by June 2024, down from 53% in June 2023.

This decline marks a shift in the bank's deposit distribution, with other regions experiencing slight increases. The North-Eastern region’s share remained relatively stable at 4%, while the Central region's share grew from 10% to 11%.

The Northern region saw a minor increase from 12% to 14%, while the Southern region's share slightly dropped from 10% to 7%. The Western region also experienced an increase, going from 11% to 13%.

The distribution of deposits by category shows that Metro and Urban areas contribute the largest shares, with 39% and 38%, respectively. Semi-Urban areas account for 13%, and Rural areas make up 10% of the total deposits.

State-wise distribution reveals that West Bengal remains a significant contributor, with a deposit share of 39%, followed by Maharashtra at 10% and Uttar Pradesh at 6%. The NCT of Delhi and Odisha each hold shares of 4%, with the remaining 37% spread across other states.

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Bandhan Bank Q1 FY25 Results

Bandhan Bank has announced its financial results for the first quarter of FY25, showing impressive growth across key metrics. The bank's Profit After Tax (PAT) surged by 47% year-on-year, reaching ₹1,063 crore.

Deposits grew by 23% year-on-year, totaling ₹1.33 lakh crore as of June 30, 2024. Gross advances also saw a strong increase of 22% year-on-year, reaching ₹1.26 lakh crore. The bank's asset quality improved significantly, with Gross Non-Performing Assets (NPA) decreasing to 4.2% from 6.8% a year ago, and Net NPA dropping to 1.1% from 2.2%.

Net revenue for the quarter rose by 23%, amounting to ₹3,533 crore. Net Interest Income (NII) increased by 21% to ₹3,005 crore. The bank’s Net Interest Margin (NIM) remained stable at 7.6%, and the cost-to-income ratio improved to 45% from 48% in the previous quarter.

Operating Profit grew by 24% to ₹1,941 crore. Provisions and contingencies decreased to ₹523 crore from ₹602 crore in the previous year. The bank's Return on Assets (RoA) stood at 2.5%, and Return on Equity (RoE) was 18.8% (annualized).

Deposits include CASA (Current Account Savings Account) deposits of ₹44,456 crore, with a CASA ratio of 33.4%. The CASA plus Retail Term Deposit (TD) ratio is over 69%. The bank’s Gross Advances saw growth across various sectors, with retail advances up by 83%, commercial banking up by 30%, and the housing book up by 13%.

Capital adequacy stood at 15.7%, well above the regulatory requirement of 11.5%. The bank’s distribution network now includes nearly 6,300 outlets, with a customer base of 3.44 crore and over 77,500 employees.

Ratan Kumar Kesh, MD & CEO, commented on the results “During the first quarter of the year, the bank has achieved remarkable growth across key metrics. Our robust performance reflects our team's resilience and strategic agility amid challenging market conditions. 

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Bandhan Bank Segment-Wise Analysis for Q1 FY25

Bandhan Bank has released a detailed segment-wise analysis for the first quarter of FY25, highlighting significant developments across various loan categories and regions.

• Emerging Entrepreneurs Business (EEB): EEB saw a slight decrease in asset growth to ₹619.1 billion in Q1 FY25 from ₹622.5 billion in Q1 FY24. The number of active borrowers increased to 13.9 million from 13.7 million.The SBAL segment remains a key part of the EEB portfolio.
• Housing Finance: Housing finance assets grew modestly, with the segment showing a 7.7% increase in disbursements, reaching ₹299.2 billion by June 2024. The housing loan disbursement figures for Q1 FY25 were ₹233.2 billion.
• Commercial Banking: Commercial Banking assets increased to ₹280.7 billion, up from ₹215.5 billion a year ago. The segment saw a substantial 35% YoY growth. The commercial banking segment includes significant advances to SMEs and NBFCs, with the latter's portfolio rated highly by external agencies.
• Retail Assets: Retail assets reached ₹55.8 billion, with notable growth observed in personal loans and vehicle financing. Retail disbursements amounted to ₹62.3 billion in Q1 FY25.

The focus on emerging entrepreneurs, housing finance, and commercial banking has been particularly strong, showcasing the bank's adaptability and resilience in a dynamic market.

Bandhan Bank 

Bandhan Bank, established as a universal bank on August 23, 2015, is one of India's fastest-growing private sector banks. Committed to financial inclusion, the bank focuses on serving underserved and rural areas with a range of banking products and services.

Guided by the principle of 'Aapka Bhala, Sabki Bhalai,' Bandhan Bank aims to make a positive impact on people’s lives. It operates across 35 states and union territories in India, with nearly 6,300 banking outlets. As of June 30, 2024, it has a deposit base of ₹1.33 lakh crore and total assets of ₹1.26 lakh crore, serving over 34.4 million customers.