Bandhan Bank’s recent performance in Q2 of FY 2024-25 underscores its rapid growth and strategic shift towards digital transformation and a customer-centered retail expansion. With a 24% increase in total business, reaching ₹2.73 lakh crore, Bandhan Bank has made significant strides in adapting to India’s evolving financial landscape. This growth is not only about numbers but also reflects the bank’s long-term vision to enhance service quality and improve accessibility through technology.
In recent years, Bandhan Bank has focused heavily on expanding its customer base, which now stands at over 3.5 crore individuals across India. With nearly 6,300 banking outlets and a workforce of around 80,000 employees, the bank has established a considerable presence, especially in rural and semi-urban areas, where financial inclusion is still developing. The push towards digitization aligns with the bank’s goal to enhance its retail portfolio, currently comprising about 68% of total deposits. Through a mix of strategic growth and regional accessibility, Bandhan Bank is positioning itself as a comprehensive provider for a diverse range of customers.
Financial performance data further illustrates the bank’s upward trajectory, particularly in terms of deposits and advances. The deposit book increased by 27% from last year to ₹1.43 lakh crore, while advances are at ₹1.31 lakh crore. This balanced growth in deposits and lending is supported by the bank’s current account and savings account (CASA) ratio of 33.2%. This metric reflects the bank’s ability to maintain low-cost deposits, which in turn, improves profitability. Additionally, Bandhan Bank’s Capital Adequacy Ratio (CAR) stands at 15.6%, well above the regulatory requirement, signaling strong financial stability.
Ratan Kumar Kesh, Interim MD & CEO, remarked, “Bandhan Bank’s strong performance in the second quarter reflects the momentum in quality growth with our focus on effective risk management and compliance. Our success is anchored in the trust of our customers and the dedication of our employees. By focusing on innovation in technology, refining our processes, and enhancing products and people capabilities, we are well-positioned to drive the next phase of growth for Bandhan Bank 2.0.” This statement captures the bank’s emphasis on sustainable growth powered by innovation and efficient risk management.
To support its expansion, Bandhan Bank has prioritized digitalization as a means to improve operational efficiency and offer a seamless customer experience. This strategic move includes launching a variety of new products aimed at catering to specific customer needs. Among recent launches are trade services, pension schemes, the Avni Savings Account, and a GST payment service. These initiatives highlight the bank’s commitment to providing comprehensive services that cater to both individual and business clients.
Bandhan Bank’s approach to expansion also aligns with the Indian government’s broader push for financial inclusion. By investing in digital tools and widening its retail deposit base, the bank is capitalizing on the growing demand for accessible banking options. This dual focus on regional expansion and digital innovation positions Bandhan Bank as a competitive player in India’s banking sector, ready to adapt to shifting market demands.
The coming years may see Bandhan Bank further leveraging technology to improve service delivery, while also expanding into newer markets within India. Through this multifaceted approach, the bank is creating a sustainable foundation to support its next growth phase, bringing enhanced financial services to millions across the country.
