Q3 2024 Bandhan Bank Ltd Earnings Call Transcript
Key Points
- Bandhan Bank Ltd (BOM:541153) reported a net profit of INR 733 crores for Q3 FY24, a significant year-on-year growth of 152%.
- The bank's overall advances grew by 18.6% year-on-year and 7.7% quarter-on-quarter, reflecting strong demand across asset verticals.
- Retail loan book, excluding housing loans, grew by 70% year-on-year and 15% quarter-on-quarter, showcasing impressive growth in retail assets.
- CASA deposits showed a healthy growth of 14% year-on-year, with the CASA ratio standing at 36.1%.
- The bank's net interest margin improved to 7.2%, up from 6.5% in the same quarter last year, indicating better profitability.
- Gross NPA ratio remains high at 7%, although it has improved from 7.3% in the previous quarter.
- The bank experienced significant slippages in October due to CBS system migration and festival season, impacting asset quality.
- The SMA-0, SMA-1, and SMA-2 books, although improving, still represent a considerable portion of the bank's portfolio, indicating ongoing asset quality concerns.
- The bank's reliance on non-retail term deposits for funding growth could impact margins due to higher costs associated with wholesale deposits.
- The ongoing CGFMU audit and the associated stress book of INR 3,600 crores, with an 89% provision, remain a concern for the bank's financial health.
Ladies and gentlemen, good day, and welcome to the Bandhan Bank Q3 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vikash Mundra. Thank you, and over to you, sir.
Thank you, Zico. Good evening, everyone, and a warm welcome to all the participants. It's our pleasure to welcome you all to discuss Bandhan Bank's business and financial performance for the quarter ending December 2023. We will take this opportunity to update you on the recent developments in the industry as well as on Bandhan Bank during the quarter.
To discuss all this in detail, we have with us our Founder and Managing Director and CEO, Mr. Chandra Shekhar Ghosh; Executive Director, Mr. Ratan Kumar Kesh; Interim CFO, Mr. Abhijit Ghosh; myself, Vikash Mundra, Head of Investor Relations; along with other senior management team of the bank. We will be happy to provide you with any clarity if required from the current quarter numbers and the way
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