Bandhan Bank Reports Positive Financial Performance in Q1 FY25, But Some Areas Need Improvement

Bandhan Bank, a largecap private bank, has recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for Bandhan Bank is ‘Hold’.

The bank has shown a positive financial performance in the quarter, with a score of 13 compared to -4 in the previous 3 months. This improvement can be attributed to various factors, as seen in the Jun 2024 financials.

One of the key highlights is the growth in Profit Before Tax less Other Income (PBT) – Quarterly, which has increased by 357.6% to Rs 890.35 crore compared to the average PBT of the previous four quarters at Rs 194.57 crore. This indicates a very positive trend in the near term.

Similarly, the Profit After Tax (PAT) – Quarterly has also shown a significant growth of 90.8% to Rs 1,063.46 crore compared to the average PAT of the previous four quarters at Rs 557.39 crore. The bank’s Net Interest Income (Quarterly) has also seen a positive trend, with the highest at Rs 3,005.02 crore in the last five quarters, indicating an increase in income from core business.

The Interest Earned – Quarterly has also shown a positive trend, with the highest at Rs 5,535.82 crore in the last five quarters. The Operating Profit (PBDIT) – Quarterly has also seen a positive trend, with the highest at Rs 1,413.35 crore in the last five quarters.

Overall, the company has shown a positive trend in its profitability, with the Earnings per Share (EPS) – Quarterly at the highest at Rs 6.60 in the last five quarters. This indicates that the company has created higher earnings for its shareholders.

However, there are some areas that need improvement, as seen in the Jun 2024 financials. The Non Operating Income – Quarterly is 37.21% of Profit Before Tax (PBT), which indicates that the company’s income from non-business activities is high and may not be a sustainable business model. Additionally, the CAR – Quarterly is at its lowest at 0.00% in the last five quarters, indicating a deteriorating capital base compared to its risk assets.

In conclusion, Bandhan Bank has shown a positive financial performance in the quarter ending June 2024, with an overall improvement in its profitability. However, there are some areas that need to be addressed for sustainable growth in the future.