Mixed Quarter; Other Income drags earnings

Company
11 Mar 2024
5 Min read 
  • Bandhan Bank reported a mixed quarter with a 7% miss on profitability due to muted other income.
  •  Advances grew at a healthy rate of 20% YoY/8% QoQ, driven by robust growth in the MFI and non-MFI portfolios.
  •  Deposit growth was healthy at 15% YoY/4.8% QoQ, driven by growth in term deposits.
  •  GNPA declined 30bp QoQ to 7.0%, while slippages remained elevated due to system migration.
  •  The bank expects to increase its secured loan book to 50% by FY26.
  •  The bank has guided for ~7%-7.5% NIMs in 4QFY24 and expects RoA of ~2.5-2.8% and RoE of ~14%-18%.
  •  Retain Neutral rating with a TP of INR245.
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