Bandhan Bank Soars 11%: Q1 Earnings Impress Amidst ChallengesBandhan Bank Soars 11%: Q1 Earnings Impress Amidst Challenges

Bandhan Bank’s shares surged 13.4% to ₹218.20, a high since February 2024, following a report of higher-than-expected quarterly profits.

On Friday, Bandhan Bank announced a 47% increase in net profit for the June 2024 quarter, reaching ₹1,063 crore compared to ₹721 crore last year. This growth highlights the bank’s operational efficiency.

Total deposits stood at ₹1.33 lakh crore by June 2024, marking a 23% increase year-over-year but showing a slight 1.5% drop from the previous quarter. The CASA ratio slightly decreased by 372 basis points quarter-over-quarter to 33.4%. 

The bank reported gross advances of ₹1.26 lakh crore, a 22% increase from the previous year and a modest 0.7% rise from the previous quarter. This indicates steady lending growth.

Bandhan Bank has set a credit growth target of 18–20% for the next 2-3 years, showing confidence in its future lending capabilities. The bank also plans to boost deposit growth to outpace advances.

This strategic focus on managing growth and maintaining profitability underscores Bandhan Bank’s robust position in a challenging market environment, even as it navigates slight volatility in asset quality.