Bandhan Bank Q4 Net Profit Soars 483% YoY; Board Recommends ₹1.50 Dividend

Bandhan Bank delivered a standout performance in the fourth quarter of FY25, with net profit surging 483% year-on-year to ₹3.18 billion, compared to just ₹550 million in the same period last year. The remarkable profit growth was primarily driven by a significant reduction in provisions and contingencies, which fell to ₹12.6 billion from ₹17.74 billion a year ago, reflecting improved asset quality and prudent risk management.

 

Interest earned for the quarter stood at ₹54.34 billion, while net interest income (NII) declined 4% year-on-year to ₹27.56 billion, amid a challenging interest rate environment. The bank’s net interest margin contracted to 6.7%. Operating profit for the quarter was ₹15.71 billion, down from ₹18.38 billion in Q4 FY24, as total net revenue slipped slightly to ₹34.56 billion.

 

Asset quality remained stable, with gross non-performing assets (NPA) at 4.71% and net NPA at 1.28%. The provision coverage ratio improved to 86.5%, up from 84.5% last year. Total deposits grew 12% year-on-year to ₹1.51 trillion, and gross advances rose 10% to ₹1.37 trillion.

 

The board has recommended a dividend of ₹1.50 per share, subject to shareholder approval at the upcoming AGM. MD & CEO Partha Pratim Sengupta emphasized the bank’s focus on digital-first solutions and long-term value creation as Bandhan Bank enters its next phase of growth.

 

Source: Economic Times, Business Standard, CNBC-TV18, Business Today, Goodreturns