Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q2 FY24 Earnings Presentation
30 slides from Bandhan Bank's earnings presentation, October 2023
Slide 1: Investor Presentation Q2FY24
Investor Presentation Q2FY24 Oct’ 2023
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
Slide 4: Key Highlights
Key Highlights • Retail division grew 80% YoY, Commercial Banking division grew 65% YoY Total Deposits Total Loans and Advances1 • Loan portfolio (on book + off book + TLTRO + PTC) for Q2FY24 grew 4.3% QoQ and 12.3% YoY • CASA ratio improved to 38.5% as compared to 36.0% of Q1FY24 ₹ 1120.8 bn ₹ 1076
Slide 5: EEB Collection Efficiency
EEB Collection Efficiency Top states Collection Efficiency for the month Collection Efficiency for the quarter States For Jun’23 For Sep’23 For Q1 FY24 For Q2 FY24 Excluding Arrears Excluding Arrears 110% 107% 99% 98% 113% West Bengal 99% 99% 99% 99% 95% 94% 108% 98% 98% 94% 94% Assam 99% 99% 99% 99
Slide 6: EEB DPD movement
EEB DPD movement 1-30 days 31-60 Days Rs 13.3 bn; 2.6% Rs 7.5 bn; Rs 9.6 bn; Rs 6.1 bn; 1.8% 1.5% 3.4% 1.1% 1.9% Rest of India 2.3% 1.5% 1.2% 0.6% 0.9% 0.4% 1.7% 1.1% 1.0% 0.8% Assam Jun'23 Sep'23 Jun'23 Sep'23 West Bengal 61-90 Days NPA Rs 47.5 bn; Rs 56.2 bn; Rs 7.2 bn; 9.3% 10.4% 1.4% Rs 6.9 bn;
Slide 7: Stress Pool and NPA Analysis
Stress Pool and NPA Analysis All amount in ₹ Bn. EEB Stress Pool Coverage Analysis – Sep’23 EEB Book - Vintage Analysis Coverage Amount 56.2, 81% Qtr Disbursement NPA NPA % on Disb. Provision 49 Q1FY23 82.2 3.1 3.7% 6.1, 9% 6.9, CGFMU recovery 16 Q2FY23 128.4 3.2 2.5% 10% ECLGS Guarantee 4 Q3FY23 15
Slide 8: NPA movement
NPA movement All amount in ₹ Bn. Particulars Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Opening GNPA (A) 69.7 68.5 69.6 53.0 69.6 Fresh Slippages (B) 39.5 32.7 11.2 13.6 13.2 Reductions (C) : - - - - - - Recoveries & Upgrades 5.3 6.2 4.7 2.8 4.1 - Write offs 35.4 25.3 - - - NPA Sale to ARC (D) - - 23.2 - -
Slide 9: Business & Financial Overview
Business & Financial Overview
Slide 10: Geographical Distribution
Geographical Distribution Focus on serving the rural & underbanked population Banking Outlets Banking Outlets as on 30th Sep 2023* 10.1% 10% 34% 18% 1.3% 38% 6,140 6,219 5,646 1,542 1,621 Metro Urban Semi-Urban Rural 1,190 *Basis original classification at the time of opening Diversifying presence w
Slide 11: Asset Book Mix
Asset Book Mix All amount in ₹ Bn. 12.3% Share of Loan Book 4.3% Sep-23 CB 21.4% 1031.7 1076.3 Retail 3.6% 958.3 Housing 24.9% 229.9 215.5 139.5 SBAL* 16.9% 21.6 33.7 39.0 EEB Group 33.2% 258.0 269.5 267.5 Jun-23 CB 20.9% 539.2 513.0 539.9 Retail 3.3% Housing 26.1% SBAL* 17.0% Sep'22 Jun'23 Sep'23 E
Slide 12: Emerging Entrepreneurs Business
Emerging Entrepreneurs Business Emerging Entrepreneurs Asset Growth (₹ in Bn) Number of Active Borrowers (Mn) 0.1% 5.2% 539.2 13.7 13.8 539.9 513.0 12.9 Sep'22 Jun'23 Sep'23 157.3 182.1 175.3 EEB Loan Disbursement (₹ in Bn) 169.9 128.4 47.4 40.9 80.2 381.9 357.8 337.7 24.0 122.5 87.5 56.2 Sep'22 Jun
Slide 13: Housing Finance
Housing Finance Housing Asset Borrowers Bifurcation – Sep’23 Housing HousingAsset Asset Bifurcation (₹ in Bn) 0.4% Segment Segmentwise wise(in (in%) %) 3.7% 43.9% 55.7% 258.0 269.5 267.5 1.0% 1.0% 0.8% 2.6 2.2 7.5% 8.2% 5.7% 2.6 22.1 15.3 12.6% 12.9% 13.7% 19.4 34.8 36.6 Salaried Self Employed Profe
Slide 14: Commercial Banking (CB) & Retail Assets
Commercial Banking (CB) & Retail Assets Product wise CB Assets (₹ in Bn ) CB segment wise Growth 64.8% NBFC SME 6.7% Q-o-Q YoY 215.5 229.9 139.5 2.0% 81.2% 105.3 117.5 77.5 110.2 112.4 11.6% 51.6% 62.0 Sep'22 Jun'23 Sep'23 NBFC SME Product wise Retail Assets (₹ in Bn ) CB & Retail Disbursements(₹ in
Slide 15: Liabilities Profile
Liabilities Profile Deposits Growth (₹ in Bn) Retail to Total Deposits (%) 12.8% 3.3% 74% 71% 74% 1084.8 1120.8 993.7 Sep'22 Jun'23 Sep'23 291.0 CASA (%) 312.4 257.1 40.8% 397.8 38.5% 331.4 381.7 36.0% Sep'22 Jun'23 Sep'23 354.7 338.7 369.1 Average SA Balance Per Customer (₹ in 000’) 50.5 52.0 62.9
Slide 16: Financial Performance
Financial Performance Total Income (₹ in Bn) Operating Profit (₹ in Bn) 11.7% 3.7% 15.5 15.6 15.8 29.8 28.8 26.7 3.9 5.4 Q2FY23 Q1FY24 Q2FY24 4.8 PAT (₹ in Bn) 24.9 24.4 21.9 7.2 7.2 2.1 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Net Interest Income Other Income 16
Slide 17: Break up of Other Income
Break up of Other Income All amount in ₹ Mn. Details of other Income Q2FY24 Q1FY24 QoQ Q2FY23 YoY Processing Charges 2,445 1,196 104.3% 1,871 30.7% Third Party Income 749 526 42.5% 921 -18.6% Collection fees from ARC 372 339 9.6% - NA Profit on sale of Investment 356 553 -35.6% 76 367.7% Card Charge
Slide 18: Financial Performance (1/3)
Financial Performance (1/3) Spread (Annualized) 12.0% 13.3% 13.3% 5.5% 6.5% 6.4% 6.9% 6.5% 6.8% Q2FY23 Q1FY24 Q2FY24 Yield Cost of funds (Excl Cap.) Spread Capital Adequacy Ratio (CRAR) NIM (Annualized) 19.4% 19.8% 19.2% 1.0% 1.0% 1.0% 20.6% 20.5% 20.5% 7.0% 7.3% 7.2% 18.4% 18.8% 18.2% Sep'22 Jun'23
Slide 19: Financial Performance (2/3)
Financial Performance (2/3) ROAA & ROAE (Annualized) Operating expenses to Average Assets (Annualized) 14% 14% 3.3% 3.5% 3.7% Q2FY23 Q1FY24 Q2FY24 Cost to Income Ratio 5% 45.7% 46.9% 41.8% 1.9% 1.9% 0.6% Q2FY23 Q1FY24 Q2FY23 Q2FY23 Q1FY24 Q2FY24 19 ROAA ROAE
Slide 20: Financial Performance (3/3)
Financial Performance (3/3) Segmental GNPA movement (₹ in Bn) Credit Cost 68.5 69.6 78.7 5.3% 0.3 0.6 0.7 2.4% 2.5% 7.8 10.6 10.7 Q2FY23 Q1FY24 Q2FY24 9.9 10.9 11.1 Credit Cost Gross NPA and Net NPA PCR 75.5% 69.2% 70.0% 50.5 56.2 7.2% 7.3% 47.5 6.8% 1.9% 2.2% 2.3% Sep'22 Jun'23 Sep'23 Sep'22 Jun'23
Slide 21: Profit & Loss Statement (In ₹ Bn.)
Profit & Loss Statement (In ₹ Bn.) Particulars Q2 FY 24 Q1 FY 24 QoQ% Q2 FY 23 YoY% Interest Income 44.92 45.23 -0.7% 37.73 19.0% Interest expenses 20.49 20.32 0.8% 15.80 29.6% Net Int. Income (NII) 24.43 24.91 -1.9% 21.93 11.4% Non Interest Income 5.40 3.85 40.3% 4.76 13.3% Total Income 29.83 28.76
Slide 22: Balance Sheet (IN ₹Bn)
Balance Sheet (IN ₹Bn) As at As at Particulars % Change 30th Sep 2023 31st Mar 2023 Capital & Liabilities Capital 16.11 16.11 0.0% Reserves & Surplus 191.84 179.73 6.7% Shareholder Funds 207.95 195.84 6.2% Deposits 1120.79 1080.69 3.7% Borrowings 162.35 247.11 -34.3% Other liabilities and provisions
Slide 23: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Bn) Security Receipts w.r.t portfolio sale to ARC RR1 CRISIL 6.63 [ICRA]AA (Negative) ICRA Non-Convertible Debenture # 15.60** CRISIL AA/Negative CRISIL Term Loans From Bank [ICRA]AA (Negative) ICRA 0.80
Slide 24: Our Board & Management
Our Board & Management
Slide 25: Experienced and professional team…
Experienced and professional team… Core Management Team (1/2) Chandra Shekhar Ghosh Ratan Kumar Kesh Managing Director and Chief Executive Officer Executive Director • Founder of BFSL, has 30 years of experience in the field of microfinance and development • 28+ years of experience in financial, ban
Slide 26: Experienced and professional team…
Experienced and professional team… Core Management Team (2/2) Sudheer Reddy Govula Sujoy Roy Chief Compliance Officer Head – Branch Banking • 28+ years experience in banking industry • 25+ years experience in banking Industry • Previously served as Senior Vice President – Compliance at HDFC Bank Ltd
Slide 27: … backed by a strong independent Board
… backed by a strong independent Board Board of Directors Dr. Anup Kumar Sinha Chandra Shekhar Ghosh Ratan Kumar Kesh Non-executive (Independent) Chairman Managing Director & CEO Executive Director - Economist with Ph.D from University of Southern -Has more than 30 years of experience in microfinanc
Slide 28: Awards and accolades
Awards and accolades Bandhan Bank wins IBS intelligence Global Fintech Award Bandhan Bank received the IBS intelligence Global Fintech Award for “Best Digital Channel/Platform Implementation: Best Project Implementation “for Corporate Internet Banking implementation on December 14, 2022. The IBSi Gl
Slide 29: 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 30: Thank You
Thank You investor.relations@bandhanbank.com 30