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  • 12 Feb 2024
  • ICICI Securities

BANDHAN BANK REPORTED HEALTHY PERFORMANCE WITH REVIVAL

BANDHANBNK - 156 Change: -0.93 (-0.59 %)

News: Bandhan Bank reported healthy performance with revival in advance growth at 7.7% QoQ to Rs 115940 crore, driven by MFI segment. Liabilities accretion came at 14.8% YoY, primarily driven by retail term and bulk deposits. Operational performance remained steady with flattish margin at 7.2%. Lower provision led to 152% YoY to Rs 730 crore. Gradual improvement witnessed in GNPA ratio from 7.3% in Q2FY24 to 7% in Q3FY24, though slippages continued to remain elevated.

Views: Management confident on continued business growth and steady margins. While provision coverage is inching up, slippages trajectory remains watchful. No timeline provided on recovery from CGFMU. Valuation remains at comfortable level, though sustained growth will determine re-rating probability.

Impact: Neutral

Bandhan Bank reported healthy performance with revival in advance growth at 7.7% QoQ to Rs 115940 crore, driven by MFI segment. Liabilities accretion came at 14.8% YoY, primarily driven by retail term and bulk deposits. Operational performance remained steady with flattish margin at 7.2%. Lower provision led to 152% YoY to Rs 730 crore. Gradual improvement witnessed in GNPA ratio from 7.3% in Q2FY24 to 7% in Q3FY24, though slippages continued to remain elevated.