Shares of this Mid-cap private sector bank surged 9.5% in Friday’s trade after announcing new MD & CEO
Stock Action:
Bandhan Bank Ltd, holding a market cap of Rs. 32,871. .87 Crores, experienced a rise in its share price from Rs. 187.75 to Rs. 205.8 per share in the early trading hours.
Reason behind the Action:
Bandhan Bank Ltd has announced that the Reserve Bank of India (RBI) has approved the appointment of Mr. Partha Pratim Sengupta as its Managing Director and Chief Executive Officer (MD & CEO) for a three-year term.
Mr. Sengupta has close to 40 years of experience in the banking sector. He has held senior roles at State Bank of India (SBI), including Deputy Managing Director and Chief Credit Officer, and served as MD & CEO of Indian Overseas Bank (IOB) until 2022. His background includes experience in both retail and corporate banking, as well as involvement in various committees during his tenure.
Recent Quarter Results:
On October 4th, Bandhan Bank Ltd shared its financial results for the quarter that ended on September 30, 2024. The bank’s total loans and advances have grown to Rs. 1,30,652 crore, which is an increase of 21.4% compared to last year. Its total deposits also rose by 27.2% to Rs. 1,42,511 crore.
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Among these deposits, the amount from savings and current accounts (known as CASA deposits) reached Rs. 47,284 crore, up by 9.5%. The bank has a strong liquidity coverage ratio of about 162.1%, meaning it has enough cash to meet short-term obligations. Additionally, the bank’s collection efficiency, which shows how well it collects payments, is 98.2%.
Financials:
The company reported Net Interest Income of Rs. 10,326 Crores in FY 2024, up from Rs. 9,260 Crores in FY 2023, resulting in 11.5% year-on-year growth, and net income for the same period increased from Rs. 2,195 Crores to Rs. 2,230 Crores, resulting in 1.6% growth in net income.
Shareholding Pattern:
As of the June quarter, shareholding pattern the company promoters own 39.98% stake, while Foreign institutional investors own 28.25% of the company, Domestic institutional investors own 15.06% of the company, and the retail investors hold 16.71% stake in the company.
About the Company:
Bandhan Bank operates in 35 out of 36 states and union territories in India, with a total of 6,297 banking outlets serving approximately 3.44 Crore customers. It received a universal banking license from the Reserve Bank of India and began operations on August 23, 2015, starting with 501 branches, 50 ATMs, and 2,022 Banking Units (BUs).
As of September 30, 2024, Bandhan Bank has mobilized deposits of Rs. 1,42,511 Crores and has total advances of Rs. 1,30,652 Crores. The bank is committed to inclusive banking, focusing on reaching the unbanked and underbanked populations. Notably, 73% of its branches are located in rural and semi-urban areas, ensuring access to financial services for those who need it most.
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Written By: Arvind jv
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