Bandhan Bank's financial performance released for the September quarter shows promising growth, with an increase in total deposits by 12.8% and a rise in loans and advances by 12.3% in the period. Shares of the bank have seen a recent surge due to media reports of a new executive director from HDFC Bank joining the team.
Advances increased by 4.3% over the June quarter to Rs 1,07,633 crore from Rs 95,835 crore last year. The bank also reported solid growth in its deposit mobilization, which increased by 12.8% to Rs 1.12 lakh crore. Meanwhile, CASA (Current Account Savings Account) deposits rose by 6.5% YoY to Rs 43,161 crore. Retail deposits, including CASA, grew by 12.6% YoY to Rs 82,977 crore.
The bank's total bulk deposits were at Rs 29,098 crore, showing a YoY increase of 13.2%. This is higher than last year's Rs 25,705 crore but lower than the previous quarter's Rs 31,240 crore.
According to InvestingPro real-time metrics, Bandhan Bank is a prominent player in the Banks industry. Despite the bank's strong performance, it's worth noting that the bank's revenue growth has been slowing down recently, and it suffers from weak gross profit margins. Bandhan Bank is also quickly burning through cash, indicating low earnings quality with free cash flow trailing net income.
In addition to these positive figures, Bandhan Bank maintained its loan collection efficiency at 98%, with a liquidity coverage ratio (LCR) of 162.90% as of September 30, 2023. This performance is in line with InvestingPro Tips, which suggest that the bank's net income is expected to grow this year, and analysts predict the company will be profitable this year.
Despite the slight dip in the CASA ratio to 38.5%, down from last year but improved since June, Bandhan Bank's financial performance remains strong with steady advances growth and efficient loan collection.
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