Bandhan Bank shares ended 4% higher on Thursday
Bandhan Bank shares ended 4% higher on Thursday

Bandhan Bank gives more bang for the buck with strong Q4 show

  • Bandhan Bank’s net profit grew 68% in the March quarter, beating Street estimates
  • Strong asset quality amid fast loan growth has given comfort to the lender’s investors

Mumbai: India’s youngest private sector lender, Bandhan Bank Ltd, showed yet again how profits can be made through small loans, something that big established lenders are chasing with vigour of late.

Bandhan Bank reported an impressive 68% rise in its net profit for the March quarter, beating Street estimates by a mile. A Bloomberg survey showed that analysts had penciled in a growth of 45%.

The microlender-turned-full-service-bank saw its core income grow by 45.6%, powered by a 38.5% growth in loans. To be sure, loan growth has moderated compared with previous quarters, because the lender went slow on disbursing non-microloans.

Mumbai: India’s youngest private sector lender, Bandhan Bank Ltd, showed yet again how profits can be made through small loans, something that big established lenders are chasing with vigour of late.

Bandhan Bank reported an impressive 68% rise in its net profit for the March quarter, beating Street estimates by a mile. A Bloomberg survey showed that analysts had penciled in a growth of 45%.

The microlender-turned-full-service-bank saw its core income grow by 45.6%, powered by a 38.5% growth in loans. To be sure, loan growth has moderated compared with previous quarters, because the lender went slow on disbursing non-microloans.


What is comforting is that even with fast growth, asset quality has not got compromised. Bandhan Bank’s gross bad loan ratios improved sequentially, despite its exposure to troubled lender Infrastructure Leasing and Financial Services Ltd (IL&FS).

In the third quarter of FY19, the bank’s chief, Chandra Shekhar Ghosh, had said mea culpa on IL&FS after providing fully for the 385 crore exposure it had to the defaulting company.

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