However, erring on the optimistic side, the bank guided for a loan and deposit growth above industry levels at around 20% in FY24.
During the June quarter, the bank is likely to report up to a 14% fall in net profit, while net interest income is also likely to decline by a marginal 1-2%.
Axis Securities expects the net profit figure to be around Rs 758 crore, while Motilal Oswal sees the same at Rs 820 crore. The lender had posted a net profit of Rs 887 crore in the year-ago period.
“We remain cautious on the bank’s Q1FY24 results on the recent weak business update, its CFO resignation and recent floods in Assam,” said Shreyansh Shah, Research Analyst, Stoxbox.
In the preceding March quarter, Bandhan Bank’s net profit plummeted nearly 58% year-on-year (YoY) to Rs 808 crore, while NII grew nearly 19% sequentially to Rs 2,472 crore.
Some key monitorable in the report card include commentary around margins and growth, especially in the EEB (emerging entrepreneur’s business) segment.Here’s what brokerages expect from Bandhan Bank’s Q1
Axis Securities
The microfinance (MFI) disbursements are expected to be weak seasonally, while margins will likely remain under pressure with CoF inching up and slower growth in the EEB book.
Credit costs to taper on a sequential basis. Slippages are expected to be higher. Asset quality improvement to be visible.
Motilal Oswal
The brokerage sees NII at Rs 2,630 crore, which is higher by 4% YoY, and expects net interest margin (NIM) to remain in a narrow range.
“We see business growth to remain muted on a sequential basis and expect asset quality and credit cost to improve. Meanwhile, cost ratios are expected to remain under control,” it said.
Kotak Institutional Equities
Kotak Equities sees NIM at 7.8% as the portfolio is still re-pricing upwards.
“We don’t see the bank having an adverse impact from the recent floods in North Eastern India. We should expect positive commentary on growth, recovery in business, and return ratios for the bank,” it said.
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