Bandhan Bank Stock Surges Over 12% After Strong Q4 Results

After trading lower yesterday, the stock of Bandhan Bank surged over 12 percent on the bourses on Wednesday after reporting strong financials in the March quarter.

The stock opened 4 percent higher at Rs 186.01 compared to the previous close of Rs 178.65 apiece.

During the early trading hours, the stock surged up to Rs 200.50, which was about 12.2 percent higher than the previous close.

This was in contrast to the stock’s yesterday’s trade, when it had closed marginally lower by 0.5 percent.

Among all the equities trading on the National Stock Exchange on Wednesday, the stock remained among the top five gainers.

The strong rally came after the lender reported strong numbers in the March quarter.

It reported a 68 percent year-on-year jump in net profit to Rs 534 crore during the March quarter.

The sharp increase was driven by lower credit costs and higher fee income, even as core income growth remained modest. Net interest income (NII) rose 1.4 percent to Rs 2,795.4 crore.

Its gross NPA (non-performing asset) eased to 3.27 percent during the quarter from 3.33 percent in the December quarter, reflecting an improvement in asset quality.

Net NPA also declined to 0.97 percent from 0.99 percent sequentially. The bank’s collection efficiency strengthened to 98.9 percent, reflecting better recoveries.

Loans and advances also increased 12.6 percent year-on-year to Rs 1.54 lakh crore, while deposits rose 10 percent to Rs 1.66 lakh crore.

The share of retail deposits rose 17.7 percent year-on-year, accounting for 73.67 percent of total deposits.

The bank also reported a decent liquidity coverage ratio of 131.76 percent.

The bank reported a mild increase in CASA (current account-savings account) deposits. The metric increased 2.8 percent to Rs 48,751 crore, while the CASA ratio remained at 29.21 percent.

The bank has announced a dividend of Rs 1.5 per share on a face value of Rs 10.