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Quarterly Update Q1CY25

Integrated Model Driving Sustainable Growth

Q4 was better than expected for Bandhan Bank, given the challenges the MFI segment was faced with. Though slippages were higher than in the prior quarter in the overall book incl. the EEB book, the decrease in the SMA book was positive, indicating lower incremental stress build-up.

Strong growth in non-interest income was counterbalanced by weak NII and higher opex which led to ~3% sequential de-growth in core operating profits for Federal bank.

Net earnings in line for Q4FY25. NII grew 22.4% y-o-y/4.5% q-o-q at Rs. 9,807 crore due to lower yield on AUM and reduction of interest rate on select unsecured products. It marginally missed our estimates. NIM at 9.42% (as a percentage of AUM), was almost in line with estimates.

Q4FY25 numbers were a mixed bag. NII at Rs. 2,377 grew by 8% y-o-y/ down 2% q-o-q. Net interest margin (NIMs) were stable, improved marginally by 1 bps q-o-q to 3.12% despite spreads under pressure (down 13 bps q-o-q.

Fino posted a slight 2.5% beat on PAT at Rs240mn, owing to strong momentum in CASA and the DPS segment, and partly offset by continued cannibalization of the remittance business.

AGEL’s consolidated Q4FY25 EBITDA rose 31% YoY to Rs24bn (up 28% QoQ), led by 30% YoY uptick in operational capacity and improvement in CUF (Khavda achieved 32% in Q4), leading to 44% growth in sale of power.