Bandhan Bank Limited, a prominent Indian bank, has been facing challenges in its financial performance, as evidenced by its recent stock price decline and other key indicators. In the latest quarter, the bank reported a 15% growth in total loans and advances, reaching ₹133,285 crore. However, its CASA ratio, an important metric for measuring a bank’s liquidity, declined to 31.7% from 36.1% year-over-year.
The bank also experienced some fluctuations in its deposit base. While total deposits increased by 20.1% to ₹140,999 crore compared to the same quarter last year, there was a marginal decline of 1.1% quarter-on-quarter. CASA deposits grew by 5.5% year-on-year but fell by 5.4% compared to the previous quarter.
Despite these challenges, Bandhan Bank maintained strong collection efficiency, with a pan-bank collection efficiency of 97.6% for the quarter. The bank’s liquidity coverage ratio stood at approximately 164.6% as of December 31, 2024. Retail deposits, including CASA, grew by 15.7% year-on-year, while bulk deposits saw a significant increase of 31% compared to the previous year.
Overall, Bandhan Bank’s financial performance reflects a mix of growth and challenges, with the bank working to address its liquidity and deposit base concerns. Investors and stakeholders will be closely monitoring the bank’s progress in the coming quarters to assess its ability to overcome these challenges and drive sustainable growth in the future.