Bandhan Bank, based in Kolkata, reached the milestone of more than ₹1 lakh crore in both deposits and loans & advances during Q3 of the fiscal year 2023. The bank experienced double-digit growth in both total advances and deposits compared to the previous year. However, CASA deposits saw a decrease during the quarter. The bank released its provisional data for Q3 of fiscal year 2023 on Saturday.
According to the filing, Bandhan Bank’s loan and advances reached ₹1,00,520 crore in Q3 of the fiscal year 2023, an increase of 14% from ₹87,998 crore in Q3 of the previous fiscal year. On a quarter-to-quarter basis, there was a growth of about 5% from the loans and advances of ₹95,835 crore recorded in Q2 of the fiscal year 2023.
Bandhan Bank stated that the loans and advances as of December 31, 2022, are not considering any write-offs. The figure will be revised after accounting for any write-offs, if applicable, in conjunction with the Q3 FY23 financial results.
During Q3 of the fiscal year 2023, total deposits reached ₹1,02,283 crore, an increase of 21% from ₹84,500 crore in Q3 of the previous fiscal year and also a 3% increase from ₹99,366 crore in Q2 of the fiscal year 2023.
Under total deposits, retail term deposits were at ₹33,856 crore, a 3% increase compared to the previous year, while bulk deposits were at ₹31,233 crore in Q3 of the fiscal year 2023, a significant increase of 139% compared to the previous year. However, CASA deposits decreased by 3% compared to the previous year to ₹37,194 crore. The CASA ratio was 69% in Q3 of the fiscal year 2023, lower than the 85% in Q3 of the previous fiscal year and 74% in Q2 of the fiscal year 2023.
The bank reported that during the quarter, it saw deposits moving from customers with saving balances above ₹2 crore to term deposits. These deposits have been classified as bulk term deposits.
As of December 31, 2022, Bandhan Bank’s liquidity coverage ratio was 155%.
Additionally, the bank’s pan-bank collection efficiency increased slightly to 98% in Q3 of the fiscal year 2023 compared to 97% in Q2 of the fiscal year 2023. It also reported that in the EEB segment, the amount of zero + DPD (without CGFMU adjustment and technical write-off in Q3 of fiscal year 2023) as of December 31, 2022 was lower than the amount as of September 30, 2022.
On Friday, shares of Bandhan Bank closed at ₹242.20 each, slightly higher on the BSE. Its market capitalization is over ₹39,014 crore. The bank’s stock will be of interest in the coming week following the release of its deposits and advances data for Q3. It is worth noting that the bank has not yet announced its overall financial results for the third quarter.
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