Bandhan Bank Share Price Falls After 2-Day Rally; Down 1% on March 3, 2025

Bandhan Bank’s share price declined by 1.08% on March 3, 2025, closing at ₹139.67, down ₹1.52 from the previous close of ₹141.19. The stock opened at ₹142.10 and reached an intraday high of ₹144.19, before slipping to a low of ₹138.90. The stock gained close to 4% in the last 2 trading sessions.

RBI’s Move Boosts Bandhan Bank’s Lending Capacity

Bandhan Bank’s share price gained recently as the Reserve Bank of India (RBI) restored risk weights for bank lending to Non-Banking Financial Companies (NBFCs) from 125% to 100%, effective April 1, 2025. This decision reduces the capital required by banks to lend to NBFCs, allowing for increased credit flow to the sector.

Additionally, microfinance loans provided by banks have been exempted from higher risk weights, meaning Bandhan Bank—being a key player in the microfinance segment—will benefit significantly. With reduced risk weights, the bank can allocate capital more efficiently, expand its microfinance lending, and improve profitability.

Bandhan Bank Q3 FY25 

Bandhan Bank reported a 20.07% year-on-year (YoY) increase in total deposits, reaching ₹1,40,999 crore in the quarter ended December 31, 2024, compared to ₹1,17,422 crore in the same quarter last year. However, on a quarter-on-quarter (QoQ) basis, deposits declined 1.1% from ₹1,42,510 crore recorded in September 2024.

Bulk deposits saw a 31% YoY rise to ₹44,204 crore, though they declined 3.7% QoQ. The retail to total deposits ratio stood at 68.6% in December 2024, down from 71.3% a year ago.

CASA deposits increased 5.5% YoY to ₹44,735 crore, but declined 5.4% QoQ, reflecting some seasonal variations. While the bank showed solid yearly growth, the slight sequential decline in deposits highlights short-term fluctuations in deposit mobilisation.

Conclusion

Bandhan Bank’s recent share price movement reflects a mix of profit booking and strong investor sentiment driven by favourable regulatory changes.

While the RBI’s decision on risk weights is expected to enhance the bank’s lending capacity and long-term growth prospects, short-term fluctuations in deposits and stock performance remain key factors to monitor.

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