Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q2 FY25 Earnings Presentation
39 slides from Bandhan Bank's earnings presentation, October 2024
Slide 1: Investor Presentation Q2FY25
Investor Presentation Q2FY25 Oct, 2024 1
Slide 2: Disclaimer
Disclaimer • This presentation is confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Bandhan Bank Limited (also referred to as ‘Bank’). By attending a meeting where this presentation is made, or by reading this present
Slide 3: Key Highlights
Key Highlights 3
Slide 4: Key Highlights
Key Highlights All ₹ in Bn • Loans and advances grew by 21.4% YoY (up 4% QoQ) supported by the growth in the secured loans Total Deposits Total Loans and Advances1 • Retail book (excl. housing), Commercial Banking and Housing grew 92% YoY, 40% YoY and 17% YoY respectively ₹ 1,425.1 ₹ 1,306.5 • Depos
Slide 5: Business & Financial Overview
Business & Financial Overview 5
Slide 6: Loans & Advances Mix
Loans & Advances Mix All amount in ₹ Bn. Share of Loan Book 21.4 % Sep’24 24.7% 4.0 % Commercial Jun’24 22.3% Banking 21.4% Sep’23 1,306.5 1,256.2 5.7% Retail 5.0% 1,076.3 3.6% 280.7 322.2 24.2% 229.9 62.3 75.1 Housing 23.4% 39.2 25.2% 294.1 316.3 271.4 16.2% SBAL 17.0% 16.5% 619.1 592.9 29.2% 535.8
Slide 7: Emerging Entrepreneurs Business
Emerging Entrepreneurs Business Emerging Entrepreneurs Asset Growth (₹ in Bn) Number of Active Borrowers (Mn) 10.6 % -4.2 % 13.8 13.9 13.8 619.1 592.9 535.8 Sep'23 Jun'24 Sep'24 214.0 211.6 EEB Loan Disbursement (₹ in Bn) 178.0 169.3 137.2 46.8 124.5 39.0 38.8 405.1 381.3 357.8 122.5 98.2 85.7 Sep'2
Slide 8: Housing Finance
Housing Finance Housing Asset Housing HousingAsset Asset Bifurcation (₹ in Bn) Borrowers Bifurcation – Sep’24 Segment Segmentwise wise(in (in%) %) 2.5% 16.6 % 7.5 % 40.3% 57.2% 0.9% 0.7% 0.6% 5.6% 3.7% 6.6% 316.3 294.1 14.4% 16.3% 1.9 16.2% 271.4 2.2 20.8 2.4 10.8 Salaried Self Employed Professional
Slide 9: Commercial Banking (CB)
Commercial Banking (CB) All amount in ₹ Bn. Product wise CB Assets (₹ in Bn ) NBFC Portfolio: 93% in ‘A-’ and above category as per external rating 40.2 % A A- Others AAA AA+ 8% 4% 7% 4% 22% 14.8 % 322.2 A+ 280.7 11.6 15% 9.3 51.7 AA 229.9 13.1 AA- 18% 53.6 3.3 22% * Incl DA 10.6 55.5 89.6 6.7 68.7
Slide 10: Retail Assets
Retail Assets All amount in ₹ Bn. Retail Asset Product wise Retail Assets (₹ in Bn ) Segment wise (in %) 91.6 % 0.9% 4.5% 5.0% 24.3% 16.2% 17.0% 20.6 % 20.2% 19.9% 20.6% 75.1 24.4% 22.6% 29.2% 3.8 62.3 34.7% 35.6% 12.7 24.9% 2.8 10.1 Sep'23 Jun'24 Sep'24 14.9 Vehicle Personal Gold TD-OD Others 39.2
Slide 11: Geographical Distribution of Loans & Advances
Geographical Distribution of Loans & Advances Share of Loans & Advances by States Share of Loans & Advances by Region 39% 41% 41% 8% 7% 7% 20% 20% 20% 8% 8% 8% 8% 8% 8% 12% 12% 13% 12% 13% 25% 24% 23% 14% 8% 9% Sep'23 Jun'24 Sep'24 9% West Bengal Maharashtra Bihar Gujarat MP Others 17% 16% 16% 6% Ca
Slide 12: Liabilities Profile
Liabilities Profile Deposits (₹ in Bn) CASA + Retail TD to Total Deposits (%) 27.2 % 7.0 % 74% 69% 68% 1,425.1 1,332.1 Sep'23 Jun'24 Sep'24 1,120.8 459.1 CASA (%) 411.0 291.0 38.5% 33.4% 33.2% 476.5 493.2 397.8 Sep'23 Jun'24 Sep'24 369.1 383.1 408.5 Average SA Balance (₹ in 000’) 62.9 61.5 64.3 1.9
Slide 13: Geographical Distribution of Deposit
Geographical Distribution of Deposit Share of Deposits by States Share of Deposits by Region 37% 36% 36% 10% 13% 14% 3% 4% 4% 4% 5% 4% 5% 6% 5% 10% 7% 10% 11% 8% 8% 11% 14% 13% 44% 39% 40% 10% 11% 11% 5% 4% 4% Sep'23 Jun'24 Sep'24 West Bengal Maharashtra Uttar Pradesh NCT of Delhi Odisha Others 54%
Slide 14: Geographical Distribution of Banking Outlets
Geographical Distribution of Banking Outlets Focus on serving the rural & underbanked population Banking Outlets Banking Outlets as on 30th Sep’24 Metro, 11% Rural, 34% 1.3 % Urban, 18% 6,219 6,297 6,297 Semi-Urban, 1,621 1,700 1,703 37% Share of Banking Outlets by Region Sep'24 45% 10% 16% 7% 11% 1
Slide 15: Asset Quality
Asset Quality 15
Slide 16: EEB Collection Efficiency
EEB Collection Efficiency Top states Collection Efficiency for the Month Collection Efficiency for the Quarter States For Jun’24 For Sep’24 For Q1FY25 For Q2FY25 Excluding Arrears Excluding Arrears 110.3% 109.1% 98.7% 98.1% 95.8% West Bengal 99.1% 99.0% 99.1% 99.0% 94.5% 109.5% 109.4% 98.5% 97.8% 95
Slide 17: EEB DPD movement
EEB DPD movement All amount in ₹ Bn. SMA 0 SMA 1 ₹ 9.6 bn; 1.8 % ₹ 8.8 bn; ₹ 6.1 bn; ₹ 5.8 bn; 1.5 % 1.1 % ₹ 5.6 bn; 2.3% 0.9 % ₹ 4.2 bn; 0.9 % 2.0% 0.7 % Rest of India 1.1% 1.5% 1.2% 0.9% 0.8% 0.9% 0.7% 0.4% 0.5% 1.1% 0.8% 0.5% 0.7% 0.8% 0.4% 0.6% Assam Sep'23 Jun'24 Sep'24 Sep'23 Jun'24 Sep'24 Wes
Slide 18: EEB - Stress Pool and Vintage Analysis
EEB - Stress Pool and Vintage Analysis All amount in ₹ Bn. EEB Book - Vintage Analysis * % of Disbursement EEB Stress Pool - ₹ 53.6 Bn. Qtr Disbursement SMA1* SMA2* NPA* 42.6 Q2FY23 128 0.03% 0.07% 3.67% Q3FY23 152 0.15% 0.28% 4.45% Q4FY23 211 0.34% 0.51% 4.67% 5.6 0.42% 0.35% 2.23% 5.4 Q1FY24 80 Q2
Slide 19: NPA movement
NPA movement All amount in ₹ Bn. Particulars Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Opening GNPA (A) 69.6 78.7 81.4 47.8 53.0 Fresh Slippages (B) 13.2 13.9 10.2 8.9 11.1 Reductions (C) : - Recoveries & Upgrades 4.1 4.1 5.2 3.7 3.0 - Technical Write offs - - 38.5 - 0.1 NPA Sale to ARC (D) - 7.2 - - - Clo
Slide 20: Segmental NPA and Credit Cost
Segmental NPA and Credit Cost Segmental GNPA movement (₹ in Bn) Credit Cost 78.7 0.7 2.5% 2.4% 10.7 2.0% 1.6% 1.8% 61.0 11.1 1.6 53.0 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 1.4 11.0 Gross NPA and Net NPA 10.0 5.8 70.0% PCR 5.4 7.3% 56.2 73.7% 73.5% 42.6 36.2 4.7% 4.2% 2.3% 1.1% 1.3% Sep'23 Jun'24 Sep'24
Slide 21: Financials
Financials 21
Slide 22: Financial Performance (1/2)
Financial Performance (1/2) Net Interest Income (₹ in Bn) Operating Profit (₹ in Bn) 38.0 20.7% 31.5 15.8 19.4 18.6 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 20.7% PAT (₹ in Bn) -1.9% 59.5 49.3 30.1 29.5 24.4 20.0 14.4 10.6 9.4 7.2 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 22
Slide 23: Financial Performance (2/2)
Financial Performance (2/2) Spread (Annualized) 13.3% 13.9% 13.7% 13.2% 13.8% 6.5% 6.8% 7.0% 6.9% 7.0% 6.7% 6.5% 6.7% 7.0% 6.8% Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Yield Cost of funds (Excl Cap.) Spread Capital Adequacy Ratio (CRAR) NIM (Annualized) 19.2 % 15.0% 1.0% 14.3% 0.9% 0.7% 20.6 % 7.2% 7.6%
Slide 24: Break up of Non-Interest Income
Break up of Non-Interest Income All amount in ₹ Mn. Details of other Income Q2FY24 Q1FY25 Q2FY25 QoQ YoY H1FY24 H1FY25 YoY Processing Fees 2,445 1,987 1,976 -0.5% -19.2% 3,641 3,963 8.8% Third Party Income 698 486 832 71.1% 19.1% 945 1,318 39.5% Release of prov on redemption of SR (ARC) 933 608 601
Slide 25: Financial Performance
Financial Performance ROA & ROE (Annualized) Operating expenses to Average Assets (Annualized) ROA ROE 19% 17% 3.7% 3.7% 3.8% 3.6% 3.7% 16% 14% 14% Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Cost to Income Ratio 46.9% 45.1% 47.6% 46.3% 46.4% 2.5% 2.1% 2.3% 1.9% 1.9% Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24
Slide 26: Profit & Loss Statement (In ₹ Bn)
Profit & Loss Statement (In ₹ Bn) Particulars Q2FY24 Q1FY25 Q2FY25 QoQ YoY H1FY24 H1FY25 YoY Interest Income 44.9 55.4 55.0 -0.7% 22.4% 90.1 110.4 22.4% Interest expenses 20.5 25.3 25.5 0.8% 24.6% 40.8 50.8 24.5% Net Int. Income (NII) 24.4 30.1 29.5 -1.9% 20.7% 49.3 59.5 20.7% Non Interest Income 5.
Slide 27: Balance Sheet (In ₹ Bn)
Balance Sheet (In ₹ Bn) Capital & Liabilities 31st Mar’24 30th Sep’24 % Change Capital 16.1 16.1 0.0% Employees stock options outstanding 0.4 0.6 44.5% Reserves & Surplus 199.5 220.4 10.5% Shareholder Funds 216.1 237.1 9.7% Deposits 1,352.0 1,425.1 5.4% Borrowings 163.7 83.1 -49.3% Other liabilities
Slide 28: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Bn) RR1+ 0.28 Security Receipts w.r.t portfolio sale to ARC RR1 CRISIL 1.56 RR2 1.82 [ICRA]AA- (Stable) ICRA Non-Convertible Debenture # 12.95** CRISIL AA-/Stable CRISIL CRISIL A1+ CRISIL Certificate of
Slide 29: Digital Offering and Indices
Digital Offering and Indices 29
Slide 30: Traction evident on key digital indices
Traction evident on key digital indices 96% 88% 85% 52% of retail transactions Saving Accounts MF application RD volume are digital opened digitally # sourced digitally booked digitally 28%* 75%* 49% * 53%* growth in digital Growth in Login growth in digital growth in UPI registration In Corporate I
Slide 31: Bandhan Bank is now live for collection of GST through GST Portal
Bandhan Bank is now live for collection of GST through GST Portal Get instant confirmation of GST payment and Return back to the download payment GST portal after receipt successful payment Available in both Retail Internet Banking and Confirm & make the Corporate Internet payment via Bandhan Bankin
Slide 32: Our Board & Management
Our Board & Management 32
Slide 33: Strong Independent Board
Strong Independent Board Board of Directors Dr. Anup Kumar Sinha Ratan Kumar Kesh Rajinder Kumar Babbar Non-executive (Independent) Chairman Managing Director & CEO (Interim) Executive Director & Chief Business Officer - Has around three decades of experience across industries in - Has more than thr
Slide 34: Experienced and professional team… (1/3)
Experienced and professional team… Core Management Team (1/3) Ratan Kumar Kesh Rajinder Kumar Babbar Managing Director and Chief Executive Officer (Interim) Executive Director & Chief Business Officer • 36+ years of experience leadership experience in the banking sector. • 29+ years of experience in
Slide 35: Experienced and professional team… (2/3)
Experienced and professional team… Core Management Team (2/3) Pinaki Halder Chief Information Officer Siddhartha Sanyal Chief Economist and Head - Research • 28+ years experience in Banking, Information Technology, Business Intelligence and Digital • 25+ years of experience in the field of Macro Eco
Slide 36: Experienced and professional team… (3/3)
Experienced and professional team… Core Management Team (3/3) Troy Joseph Stuart Indranil Banerjee Chief Digital Officer Company Secretary • 30 years of experience in banking industry • 20+ years experience in financial industry • Previously worked as Head – Digital Lending at Axis Bank. • Previousl
Slide 37: Awards and accolades
Awards and accolades 37
Slide 38: Awards and accolades
Awards and accolades Forbes Worlds Best Banks 2023 Bandhan Bank featured in Forbes World’s Best Banks list for the year 2023. Market research was conducted by leading firm ‘Statista’. Gallup Exceptional workspace Bandhan Bank received the 2023 Gallup Exceptional Workplace Award. We are among the onl
Slide 39: Thank You
Thank You For information contact: Vikash Mundhra, Head – Investor Relations investor.relations@bandhanbank.com 39