Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q1 FY25 Earnings Presentation
38 slides from Bandhan Bank's earnings presentation, July 2024
Slide 1: Investor Presentation Q1FY25
Investor Presentation Q1FY25 July, 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 21.8% YoY supported by all round growth across verticals Total Deposits Total Loans and Advances1 • Deposits grew 22.8% YoY, higher than the advances growth, supported by 24.9% YoY growth in retail TD ₹ 1,332.1 ₹ 1,256.2 • CASA + Retail TD to t
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 21.8% Jun’24 0.7% Commercial Banking 22.3% 1,256.2 Retail 5.0% 1,247.2 Housing 23.4% 1,031.7 280.7 269.8 SBAL 17.0% 215.5 55.8 62.3 EEB Group 32.3% 33.9 299.2 294.1 273.0 Mar’24 Commercial Banking 21.6% Retail 4.5% 622.4 619.1 509.3 Housing
Slide 7: Emerging Entrepreneurs Business
Emerging Entrepreneurs Business Emerging Entrepreneurs Asset Growth (₹ in Bn) Number of Active Borrowers (Mn) 21.6% -0.5% 13.7 13.8 13.9 622.5 619.1 Jun'23 Mar'24 Jun'24 509.3 215.0 214.0 EEB Loan Disbursement (₹ in Bn) 171.6 228.1 74.2 137.2 407.5 405.1 79.6 39.0 337.7 154.0 23.4 98.2 56.2 Jun'23 M
Slide 8: Housing Finance
Housing Finance Housing Asset Housing HousingAsset Asset Borrowers Bifurcation – Jun’24 Bifurcation (₹ in Bn) Segment Segmentwise wise(in (in%) %) 2.9% 7.7% -1.7% 39.3% 57.8% 1.0% 0.8% 0.7% 3.7% 294.1 8.1% 8.7% 299.2 273.0 16.3% 12.7% 15.1% 2.4 2.2 2.6 26.1 10.8 Salaried Self Employed Professionals
Slide 9: Commercial Banking (CB)
Commercial Banking (CB) Product wise CB Assets (₹ in Bn ) NBFC Portfolio – 93% in ‘A-’ and above category as per external rating 30.3% Others AAA 4.0% A- 7% 5% A 9% AA+ 8% 17% 280.7 A+ AA 269.8 13% 19% AA- 22% 215.5 128.1 138.6 * Incl DA 110.2 CB segment wise Growth 141.7 142.1 Q-o-Q YoY 105.3 8.2%
Slide 10: Retail Assets
Retail Assets Product wise Retail Assets (₹ in Bn ) Retail Disbursements (₹ in Bn) 83.5% 11.6% 55.8 62.3 2.8 1.7 10.1 33.9 13.7 12.6 0.2 10.3 16.9 8.6 15.2 13.7 13.0 7.2 10.2 6.5 21.6 16.5 7.8 Jun'23 Mar'24 Jun'24 Q1FY24 Q4FY24 Q1FY25 Vehicle Personal Gold TD-OD Others 10
Slide 11: Geographical Distribution of Loans & Advances
Geographical Distribution of Loans & Advances Share of Loans & Advances by States Share of Loans & Advances by Region 38% 40% 41% 8% 7% 7% 9% 8% 8% 22% 20% 20% 8% 9% 8% 13% 12% 12% 13% 13% 25% 24% 24% 11% 8% 8% 9% Jun'23 Mar'24 Jun'24 West Bengal Maharashtra Bihar Gujarat MP Others 17% 17% 16% 6% Ca
Slide 12: Liabilities Profile
Liabilities Profile Deposits (₹ in Bn) CASA + Retail TD to Total Deposits (%) 22.8% -1.5% 71% 69% 69% 1,352.0 1,332.1 1,084.8 Jun'23 Mar'24 Jun'24 414.0 411.0 CASA (%) 312.4 36.0% 37.1% 33.4% 436.5 476.5 381.7 Jun'23 Mar'24 Jun'24 404.9 Average SA Balance (₹ in 000’) 338.7 383.1 52.0 96.6 61.5 1.9 2
Slide 13: Geographical Distribution of Deposit
Geographical Distribution of Deposit Share of Deposits by States Share of Deposits by Region 37% 35% 36% 11% 14% 13% 4% 4% 4% 4% 4% 5% 5% 6% 6% 10% 8% 7% 8% 11% 10% 12% 13% 14% 43% 40% 39% 10% 11% 11% 5% 4% 4% Jun'23 Mar'24 Jun'24 West Bengal Maharashtra Uttar Pradesh NCT of Delhi Odisha Others Cate
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 Jun’24 Metro Rural 11% 34% 2.6% Urban 18% 6,297 6,297 6,140 Semi-Urban 1,700 1,700 37% 1,542 Share of Banking Outlets by Region Jun'24 45% 10% 16% 7% 11% 11% 4,
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 Mar’24 For Jun’24 For Q4FY24 For Q1FY25 Excluding Arrears Excluding Arrears 117.9% 116.7% West Bengal 99.4% 99.1% 99.3% 99.1% 109.4% 109.1% 99.1% 98.8% 98.7% 98.5% 95.8% 95.6% 95
Slide 17: EEB DPD movement
EEB DPD movement SMA 0 SMA 1 ₹ 13.3 bn; 2.6% ₹ 7.5 bn; 1.5% 3.4% ₹ 5.8 bn; ₹ 4.0 bn; ₹ 4.2 bn; ₹ 3.8 bn; 0.9% 1.9% 0.6% 0.7% Rest of India 0.6% 1.2% 1.1% 0.6% 0.8% 0.8% 0.7% 0.9% 0.4% 1.7% 0.6% 1.0% 0.5% 0.7% 0.5% 0.4% Assam 0.5% Jun'23 Mar'24 Jun'24 Jun'23 Mar'24 Jun'24 West Bengal NPA SMA 2 ₹ 47.4
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 - ₹ 45Bn. Qtr Disbursement SMA1* SMA2* NPA* 36.2 Q2FY23 128 0.13% 0.26% 4.13% Q3FY23 152 0.30% 0.51% 4.35% Q4FY23 211 0.49% 0.71% 4.02% 4.2 4.4 Q1FY24 80 0.46% 0.43% 1.55% Q2FY2
Slide 19: NPA movement
NPA movement All amount in ₹ Bn. Particulars Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Opening GNPA (A) 53.0 69.6 78.7 81.4 47.8 Fresh Slippages (B) 13.6 13.2 13.9 10.2 8.9 Reductions (C) : - Recoveries & Upgrades 2.8 4.1 4.1 5.2 3.7 - Technical Write offs - - - 38.5 - NPA Sale to ARC (D) - - 7.2 - - ECLGS
Slide 20: Segmental NPA and Credit Cost
Segmental NPA and Credit Cost Segmental GNPA movement (₹ in Bn) Credit Cost – Improving in Q1FY25 69.6 5.8% 0.6 4.3% 10.6 3.4% 2.4% 53.0 1.6% 10.9 47.8 1.4 Q1FY24 Q4FY24 Q1FY25 FY23 FY24 1.2 10.0 Gross NPA and Net NPA 9.6 5.4 PCR 4.9 69.2% 47.5 6.8% 73.7% 71.8% 36.2 32.1 4.2% 3.8% 2.2% 1.1% 1.1% Jun
Slide 21: Financials
Financials 21
Slide 22: Financial Performance (1/2)
Financial Performance (1/2) Net Interest Income (₹ in Bn) Operating Profit (₹ in Bn) 70.9 66.4 11.5% 15.6 18.4 19.4 Q1FY24 Q4FY 24 Q1FY25 FY 23 FY 24 20.7% PAT (₹ in Bn) 103.3 4.8% 92.6 22.0 22.3 24.9 28.7 30.1 10.6 7.2 0.6 Q1FY24 Q4FY24 Q1FY25 FY 23 FY 24 Q1FY24 Q4FY24 Q1FY25 FY 23 FY 24 22
Slide 23: Financial Performance (2/2)
Financial Performance (2/2) Spread (Annualized) 13.3% 13.8% 13.9% 12.4% 13.4% 6.4% 6.9% 6.9% 6.9% 7.0% 6.9% 5.6% 6.8% 6.6% 6.8% Q1FY24 Q4FY24 Q1FY25 FY 23 FY 24 Yield Cost of funds (Excl Cap.) Spread Capital Adequacy Ratio (CRAR) NIM (Annualized) 19.8 % 18.3 % 1.0% 15.0% 1.1% 20.5% 0.9% 18.3% 15.7%
Slide 24: Break up of Non-Interest Income
Break up of Non-Interest Income All amount in ₹ Mn. Details of other Income Q1FY24 Q4FY24 Q1FY25 QoQ YoY FY23 FY24 YoY Processing Fees 1,196 3,283 1,987 -39.5% 66.1% 8,220 9,428 14.7% Third Party Income 247 1,284 486 -62.1% 97.1% 4,010 3,165 -21.1% Collection fees from ARC 339 264 144 -45.7% -57.6%
Slide 25: Financial Performance
Financial Performance ROA & ROE (Annualized) Operating expenses to Average Assets (Annualized) ROA ROE 19% 4.1% 3.7% 3.8% 3.5% 3.3% 14% 12% Q1FY24 Q4FY24 Q1FY25 FY23 FY24 11% Cost to Income Ratio 2.5% 45.7% 48.4% 45.1% 46.8% 1.9% 1.6% 39.5% 1% 1.4% 0.1% Q1FY24 Q4FY24 Q1FY25 FY23 FY24 Q1FY24 Q4FY24 Q
Slide 26: Profit & Loss Statement (In ₹ Bn.)
Profit & Loss Statement (In ₹ Bn.) Particulars Q1FY24 Q4FY24 Q1FY25 QoQ YoY FY23 FY24 YoY Interest Income 45.2 51.9 55.4 6.7% 22.4% 159.0 188.7 18.6% Interest expenses 20.3 23.2 25.3 9.0% 24.5% 66.5 85.4 28.6% Net Int. Income (NII) 24.9 28.7 30.1 4.8% 20.7% 92.6 103.3 11.5% Non Interest Income 3.9 6
Slide 27: Balance Sheet (In ₹ Bn)
Balance Sheet (In ₹ Bn) Capital & Liabilities 31st Mar’24 30th Jun’24 % Change Capital 16.1 16.1 0.0% Employees stock options outstanding 0.4 0.5 17.4% Reserves & Surplus 199.5 213.5 7.0% Shareholder Funds 216.1 230.1 6.5% Deposits 1,352.0 1,332.1 -1.5% Borrowings 163.7 123.2 -24.8% Other liabilitie
Slide 28: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Bn) RR1+ 0.41 Security Receipts w.r.t portfolio sale to ARC RR1 CRISIL 1.89 RR2 1.96 [ICRA]AA (Negative) ICRA Non-Convertible Debenture # 12.95** CRISIL AA-/Stable CRISIL Term Loans From Bank [ICRA]AA (N
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% 90% 89% 47% of retail transactions Saving Accounts MF application RD volume are digital opened digitally # sourced digitally booked digitally 31%* 57%* 39% * 44%* 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 direct tax through Income Tax Portal
Bandhan Bank is now live for collection of direct tax through Income Tax Portal Pay Direct Tax Available in both Return back to Tax portal anytime Retail Internet anywhere after successful payment Banking and Corporate Internet Banking Confirm & make the payment via Bandhan Bank Internet Banking pos
Slide 32: Our Board & Management
Our Board & Management 32
Slide 33: Experienced and professional team… (1/2)
Experienced and professional team… Core Management Team (1/2) Rajinder Kumar Babbar Ratan Kumar Kesh Executive Director & Chief Business Officer Managing Director and Chief Executive Officer • 36+ years of experience leadership experience in the banking sector. • 29+ years of experience in financial
Slide 34: Experienced and professional team… (2/2)
Experienced and professional team… Core Management Team (2/2) Pinaki Halder Manoj Mauni Chief Information Officer Chief Technology Officer • 28+ years experience in Banking, Information Technology, Business Intelligence and Digital • 27+ years of experience in the field of Banking, Insurance, shippi
Slide 35: 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 Executive Director & Chief Business Officer - Has around three decades of experience across industries in - Has more than three decades
Slide 36: Awards and accolades
Awards and accolades 36
Slide 37: 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 38: Thank You
Thank You investor.relations@bandhanbank.com 38