Bandhan Bank Reports Positive Financial Performance in Q2 FY25, Investors Advised to Hold

Bandhan Bank, a largecap private bank, has recently announced its financial results for the quarter ended September 2024. The stock call for the bank by MarketsMOJO is ‘Hold’.

According to the financials, Bandhan Bank has shown a positive performance in the quarter, with a score of 11 compared to 15 in the previous 3 months. The bank’s Profit Before Tax (PBT) has seen a significant growth of 139.3% at Rs 654.14 crore, compared to the average PBT of the previous four quarters at Rs 273.38 crore. This indicates a very positive trend in the near term for PBT.

Similarly, the bank’s Profit After Tax (PAT) has also shown a growth of 45.8% at Rs 937.45 crore, compared to the average PAT of the previous four quarters at Rs 643.00 crore. This is another positive trend for the bank in the near term.

In terms of sales, the bank’s Interest Earned for the half-yearly period has grown at 22.42% Year on Year (YoY) at Rs 11,035.63 crore. This indicates a positive trend in the near term for sales.

On the other hand, the bank’s Non Operating Income for the quarter is 47.62% of its PBT. This suggests that the bank’s income from non-business activities is high, which may not be a sustainable business model.

Additionally, the bank’s Capital Adequacy Ratio (CAR) for the quarter is at its lowest in the last five quarters at 14.34%. This indicates a deterioration in the bank’s capital base compared to its risk assets.

However, the bank’s Operating Cash Flow for the year is at its highest in the last three years at Rs 14,808.42 crore. This shows that the bank has generated higher cash revenues from its business operations.

Overall, Bandhan Bank has shown a positive financial performance in the quarter ended September 2024, with some areas of concern. Investors are advised to hold their stocks in the bank and keep a close eye on its future performance.