Bandhan Bank sees QoQ decline in deposits & advances in Q1; shares plunge 3 per cent

On Friday, the shares of Bandhan Bank were seen trading lower by 3 per cent after the private lender reported a decline in its loan book and deposits in its business update for June quarter.   

Kolkata-based bank’s loans & advances shrunk by 8 per cent in June quarter to Rs 80,128 crore from Rs 87,043 crore of March quarter. The total deposits contracted by 1 per cent QoQ to Rs 77,336 crore from Rs 77,972 crore. On a YoY basis, both loans and deposits grew by 8 per cent and 28 per cent, respectively.  

The decline in total deposits came despite a 4 per cent QoQ increase in retail deposits. Bulk deposits, however, shrunk by 19 per cent sequentially.   

The ratio of retail to total deposits improved to 83 per cent in June quarter compared to 79 per cent in the preceding quarter, which is seen as a healthy sign for the bank. CASA ratio, however, fell to 42.9 per cent from 43.4 per cent sequentially.  

At 1.45 pm on Friday, the stock of Bandhan Bank was trading at Rs 309.90, down by 3.04 per cent or 9.70 per share as against a 0.19 per cent decline in the benchmark index.  The 52-week high and 52-week low of the scrip were recorded at Rs 430.25 and Rs 251.40, respectively on BSE.