Private sector lender Bandhan Bank has announced its business update for the October-December quarter of FY25, revealing robust growth in key metrics despite challenges in the broader banking sector.
Key Highlights: Bandhan Bank Q3 Performance
Loan Growth: Bandhan Bank’s loans and advances increased by 15% YoY, reaching ₹133,285 crore in Q3 FY25, compared to ₹115,940 crore in the same period last year. Sequentially, loans grew by 2%.
Deposits Growth: The bank reported a 20% YoY increase in total deposits, climbing to ₹140,999 crore from ₹117,422 crore in Q3 FY24. This growth reflects the bank’s expanding customer base and enhanced deposit mobilization.
CASA Deposits: Current and Savings Account (CASA) deposits grew by 5.5% YoY, reaching ₹44,735 crore compared to ₹42,413 crore in the same period last year. However, the CASA ratio declined to 31.7% from 36.1% in Q3 FY24, indicating a shift in the bank’s deposit mix.
CASA Ratio Decline: An Area of Focus
Bandhan Bank’s CASA ratio stood at 31.7% during the quarter, showing a decrease compared to the previous year’s 36.1%. This shift reflects the growing reliance on other deposit products, but the bank continues to maintain a strong foothold in the retail banking segment.
Stock Performance and Market Outlook
On January 3, 2025, Bandhan Bank’s shares closed 2.04% lower at ₹157.65. Over the past year, the stock has experienced a significant decline of nearly 40%, raising concerns among investors despite the positive growth in deposits and loans.
Steady Growth Amidst Market Challenges
Bandhan Bank’s Q3 results reflect a solid year-on-year performance, with strong deposit and loan growth. While the decline in CASA ratio and stock performance may require attention, the overall business fundamentals remain robust, and the bank continues to strengthen its position in the private sector banking space.
