The shares of this private sector Bank are in focus as it jumped close to 5 percent after it reported a strong Net Profit Jump on a YoY basis with the dividend announcement.
With a market capitalization of Rs. 26,235 Crore, the stock of Bandhan Bank opened at Rs. 168.05, up 1.44 percent from yesterday’s close, and after opening, it made a high of Rs. 173.35, up 4.64 percent. Additionally, the Stock has been a major underperformer for multiple time frames. The yearly return for the stock is -15 percent, and the past 5-year return is -38 percent.
Financial Highlights & Dividend
The company reported a 4.72 percent YoY increase in revenue from Rs. 5,189 Crore in Q4FY24 to Rs. 5,434 Crore in Q4FY25. On a QoQ basis, the company reported a decrease of 0.82 percent in revenue from Rs. 5,479 Crore in the previous quarter.
Their Net profit saw an increase of 478.18 percent YoY from Rs. 55 Crore to Rs. 318 Crore for the same period. On a QoQ basis, the company reported a decrease of 25.35 percent in Net profit from Rs. 426 Crore in the previous quarter.
The huge increase in Net profit of 478.18 percent YoY can be attributed to the provision and contingencies in March of 2024, which were worth Rs. 1,774.32 Crores compared to this quarter’s provisions of only Rs. 1,260 Crores
The board has recommended a dividend of Rs. 1.50 per equity share, that is 15 percent of the face value of Rs. 10 each. The dividend is subject to the approval of shareholders at the Annual General Meeting (AGM).
Total loans & advances stood at Rs. 137,902 Crore, a 10.60 percent YoY increase, total deposits stood at Rs. 151,209, an increase of 11.80 percent YoY. The NNPA ratio stood at 1.30 percent, which is a 17 bps increase from last year, and the GNPA ratio stood at 4.70 percent, a 87 bps increase from last year.
Bandhan Bank Limited is a Kolkata-based private sector bank in India, established in 2015 after transitioning from Bandhan Financial Services, which was originally a microfinance institution founded in 2001.
The bank primarily focuses on serving the underbanked and unbanked segments, especially micro and small enterprises, low-income households, and rural areas. It has 1,1715Branches across 35 states and UTs, 4,594 Banking Units, and 438 ATMs.
Written By Abhishek Das
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