Bandhan Bank Q4 Profit Surges Nearly Fivefold To Rs 318 Crore

The robust bottom-line growth came despite a slight decline in net interest income (NII), which slipped 4 per cent YoY to Rs 2,756 crore, compared to Rs 2,859 crore in Q4FY24

Asset quality remained stable with improvements in key metrics

Source : JustDial

Bandhan Bank posted a sharp jump in net profit for the March quarter, driven by a significant reduction in provisions and stable asset quality metrics. The private lender reported a net profit of Rs 318 crore in Q4FY25, marking a 483 per cent year-on-year (YoY) surge from Rs 55 crore in the corresponding quarter of the previous financial year.

The robust bottom-line growth came despite a slight decline in net interest income (NII), which slipped 4 per cent YoY to Rs 2,756 crore, compared to Rs 2,859 crore in Q4FY24. Operating profit for the quarter also moderated, falling to Rs 1,571 crore from Rs 1,838 crore a year ago.

One of the key drivers of the profit surge was a reduction in provisions and contingencies. The bank set aside Rs 1,260 crore during the quarter, a notable decline from Rs 1,774 crore in the same period last year.

Asset Quality

Asset quality remained stable with improvements in key metrics. Collection efficiency for emerging entrepreneurs’ business (EEB) loans improved marginally to 97.8 per cent in Q4FY25 from 97.4 per cent in the preceding quarter. The provision coverage ratio (PCR), including technical write-offs, rose to 86.5 per cent from 84.5 per cent a year ago. Excluding technical write-offs, PCR stood at 73.7 per cent.

On the deposits front, the bank continued to show healthy growth. Total deposits rose 12 per cent YoY to Rs 1.51 lakh crore as of March 31, 2025, up from Rs 1.35 lakh crore. CASA deposits came in at Rs 47,437 crore, with the CASA ratio at 31.4 per cent. The share of CASA plus retail term deposits to total deposits stood at around 69 per cent.

Gross advances increased 10 per cent YoY to Rs 1.37 lakh crore. Segment-wise, the retail loan book (excluding housing) saw a sharp 98 per cent YoY expansion, wholesale banking grew 35 per cent, while the housing segment registered an 11 per cent rise (or 18 per cent excluding IBPC transactions).

Despite the strong earnings, shares of Bandhan Bank ended 1.8 per cent lower at Rs 165 on the NSE on Wednesday.