Bandhan Bank shares jump 10% as asset quality improves in Q1

The private sector lender posted a 47% jump in its net profit to ₹1,063 crore for the June 2024 quarter due to a decline in bad loans. The lender had earned a net profit of ₹721 crore in the year-ago period. The bank's total income increased to ₹6,063 crore against ₹4,908 crore a year ago, as per a PTI report.

Interest income grew to ₹5,536 crore during the period under review from ₹4,523 crore in the corresponding quarter of the previous fiscal.

On the asset quality side, the bank's gross non-performing assets (NPAs) improved to 4.23% of gross advances as of June 30, 2024, from 6.76% in the April-June quarter of the previous fiscal. Net NPAs also declined to 1.15% of the advances from 2.18% a year ago.

As a result, provisions other than tax and contingencies declined to ₹523 crore against ₹602 crore earmarked during the same quarter a year ago. The capital adequacy ratio of the bank declined to 14.97%, compared to 19.75% on June 30, 2023.

Bandhan Bank share price

The stock has been a laggard at the bourses. In the past 12 months, shares of the company have slipped over 5%, while in the last five years, they have fallen over 54%. In comparison, the Nifty50 index has gained 26% in one year and nearly 127% in the five-year period.