Bandhan Bank Ltd. is a banking and financial services company, headquartered in Kolkata, West Bengal. Bandhan was set up in 2001 as a not-for-profit entity with the objective of financial inclusion and women empowerment. On June 17, 2015, RBI granted the banking licence to Bandhan, making it the first microfinance institution to become a universal bank in India. On August 23, 2015, Bandhan Bank was born with a bouquet of products for customers in all segments.
Bandhan Bank is present in 35 out of 36 states and union territories of India, with nearly 6,300 banking outlets. Bandhan Bank is focused on inclusive banking and serves the unbanked and under-banked segments of the country, with 73% of its branches situated in rural and semi-urban areas. The bank has established itself as a leading player in India's financial services sector by maintaining its commitment to serving underserved communities while expanding its comprehensive banking services.
It started its microfinance operations from Bagnan, a small village, about 60 km from Kolkata. The model followed for delivery of microfinance services was individual lending through group formation. In its journey from an NGO to an NBFC and finally a universal bank, the objective has remained reaching out to the unbanked and the under-banked and providing last-mile banking for all, big or small. Bandhan Bank's core purpose has graduated from financial inclusion to inclusive banking.
It generates a majority of its revenue from the retail banking segment. The bank's products and services include savings and current accounts, fixed deposits, credit cards, home loans, personal loans, insurance and mutual funds. The Bank's distribution network spans nearly 6,300 outlets. The Bank currently has nearly 78,400 employees.
Bandhan Bank presented its financial results for the quarter and nine months ended December 31, 2024, during its meeting on Friday, January 31, 2025, in Kolkata. Profit after tax for the quarter that ended on December 31, 2024, was Rs. 426 crore, a 42% YoY decrease from the previous quarters profit of Rs. 733 crore.
As of Q3 FY25, net interest income (NII) was Rs. 2,830 crore, up 12% year on year from Rs. 2,525 crore in Q3 FY24. The quarter's Net Interest Margin (NIM) was 6.9% as against 7.2% in Q3 of FY24.
• **Deposits**: Total deposits as of December 31, 2024, were Rs. 1.41 lakh crore, up 20% year on year from Rs. 1.17 lakh crore the year before.
• **Advances**: Gross Advances as of December 31, 2024, were Rs. 1.32 lakh crore, up 14% year on year from Rs. 1.16 lakh crore the year before.
• **CASA Ratio**: CASA Deposits stood at Rs 44,735 crore and CASA Ratio stood at 32%, CASA Retail TD to total deposit ratio stands at around 69%.
• **Market Capitalization**: Mkt Cap: 28,994 Crore (down -11.9% in 1 year) as of recent market data.
Key highlights of our FY2023-24 performance: Total Business Growth: 19.7% CASA Ratio: 37.09%
The bank's net interest income (NII) increased by 11.5% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 6.9% in FY24 as against 6.8% in FY23.
BANDHAN BANK's capital adequacy ratio (CAR) was at 18.3% as on 31 March 2024 as compared to 19.8% a year ago.
BANDHAN BANK's gross NPA ratio stood at 3.8% as of 31 March 2024 compared to 4.9% in the same period a year ago. The net NPA ratio of BANDHAN BANK was 1.1% in financial year 2024. This compared with 1.2% a year ago.
As of December 31, 2024, the bank's provision coverage ratio, comprising technical write-offs, is at 85.4%, up from 70.2% the year before.
The equity shares of Bandhan Bank are listed on BSE and the NSE. Bandhan Bank is an associate of Bandhan Financial Holdings Limited (BFHL) which holds a 39.99% stake in the bank as on December 31, 2021.
City Union Bank, AU Small Finance Bank, Suryoday Small finance Bank, Axis Bank, and Jana Small Finance Bank are some of the 6 competitors of Bandhan Bank.
Driven by the philosophy of 'Aapka Bhala. Sabki Bhalai.', (Your benefit. Everyone's welfare.) MD & CEO Partha Pratim Sengupta said, "Bandhan Bank's performance in the third quarter reflects sustainable growth, with a strong focus on risks and compliance. Our continued success is built on the trust of our customers and the hard work of our employees. With growth in our loan book and a focus on technological innovation, improving processes, and strengthening our products and teams, Bandhan Bank is well-positioned for the next phase of growth as we evolve into Bandhan Bank 2.0."
The bank continues to focus on expanding its retail and rural lending portfolio while maintaining its commitment to financial inclusion. Bandhan Bank's focus on expanding its retail and rural lending portfolio can attract more customers from underserved areas. With its strong distribution network and focus on technology-driven solutions, Bandhan Bank remains well-positioned to capitalize on India's growing financial services market while staying true to its core mission of inclusive banking.
