Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q3 FY2019-20 Earnings Presentation
31 slides from Bandhan Bank's earnings presentation, Jan 14, 2020
Slide 1: Exchange filing cover letter
I~ Bandhan Bandhan Bank Limited Head Office: Floors 12 -14, Adventz Infinity@5, BN 5, Sector V, Salt Lake City, Kolkata - 700091 "BankRef no: BBL/358/19-20 CIN: L67190WB2014PLC204622 I Phone: +91 3366090909,40456456 I Fax: +91 3366090502 Email: companysecretary@bandhanbank.com I Website: www.bandhan
Slide 2: Investor Presentation Q3 FY 2019-20
Investor Presentation Q3 FY 2019-20 January 2020
Slide 3: 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 4: Key Highlights
Key Highlights 3
Slide 5: Key Highlights
Key Highlights Bandhan Bank - Overview Snapshot of operations Q3 FY 2019-20 Loan portfolio (on book + off book) for Q3FY 19-20 grew 83.9% Y-o-Y (excl. GRUH 33%) Deposits grew by 58.5% Y-o-Y in Q3 FY 19-20 (excl. GRUH 54.4%) Total Deposits ₹ 549.08 bn Net NPA is at 0.81% (after additional provi
Slide 6: Microfinance Insights Q3FY20
Microfinance Insights Q3FY20
Slide 7: Bank's earlier experience in handling external events impacting delinquencies
Bank’s earlier experience in handling external events impacting the delinquencies* 2016-17 Demonetisation 2.99% impact 2.91% Impacted month 2.40% 2.13% 1.97% Nov'16 Dec'16 Jan'17 Feb'17 March'17 Demonetization impact – the Bank improved it’s delinquency numbers and came back to normalcy in the follo
Slide 8: Bank's earlier experience in handling external events impacting the OTR
Bank’s earlier experience in handling external events impacting the OTR 2017 98% GST impact 98% 97% 96% 96% Impacted month Mar'17 Jul'17 Aug'17 Sep'17 Dec'17 GST impact – the Bank restored its normal repayment rates in 3 months time *OTR – On Time Repayment rate
Slide 9: Conservative approach demonstrated in past external exigencies followed by quick bounce back
Conservative approach demonstrated in past external exigencies followed by quick bounce back Book size movement during Demonetisation Book size movement during GST 180 197 177 193 169 191 168 190 Jun'17 Jul'17 Aug'17 Sep'17 Oct'16 Nov'16 Dec'16 Jan'17 Impacted month Figures are in ₹ Billion
Slide 10: OTR movement for Q3FY20
OTR* movement for Q3FY20 100.00% 98.7% 98.5% 98.5% 98.8% 98.6% 98.4% 98.1% 98.4% 98.2% 97.1% ….. 98.1% 95.00% 95.7% 93.6% 90.00% 85.00% Microfinance agitation 80.00% CAA** event 75.00% Sep’19 Oct’19 Nov’19 December’19 Assam PAN India Pan India - Excluding Assam • For the Month of Sep’19; Oct’19 and
Slide 11: Underlying demand and loan book growth rate continues to be stable
Underlying demand and loan book growth rate continues to be stable Sep19 YOY Dec19 YOY (excl. Assam) Microfinance Growth Rate* 34.6% 33.4% * Excluding Direct Assignments Microfinance Sep’19 Dec’19 Portfolio Book Size Portfolio Share Book Size Portfolio Share (₹ bn) % (₹ bn) % Assam 68.55 17.5% 65.86
Slide 12: Business & Financial Overview
Business & Financial Overview 11
Slide 13: Geographical Distribution
Geographical Distribution Banking Outlets Focus on serving the rural & underbanked population (Included Gruh) Banking Outlets as on 30th September 2019* No. of Banking Outlets 4,288 10% 35% 20% 3,992 4,000 195 978 986 1,009 35% Metro Urban Semi Urban Rural *Basis original classification at the time
Slide 14: Asset Overview
Asset Overview Advances Growth (₹ in Billion) Composition of Advances (in %) 654.56 29% 181.13 447.76 355.99 46.76 61.61 46.81 87% 86% 61% 401.00 386.15 309.18 13% 10% 14% Dec 18' Dec 19* March 19' Dec 18' Dec 19* March 19' Micro Non Micro Gruh Non-Micro Micro Gruh * Dec-19 merged Advances including
Slide 15: Asset Book Mix
Asset Book Mix Total Advances (₹ in Billion) 355.99 654.56 Dec-18 1% 23.32 4%1% 7.07 3% 4% Micro … 7.96 Retail NBFC-MFI 190.78 NBFC-Others SME 87% 15.92 Mortgages 14.34 4.50 8.87 3.18 Dec-19 Merged 401 Micro 309.18 Retail 29% NBFC-MFI 4% 61% NBFC-Others 1% SME Dec 18' Dec-19 4% Mortgages 1% Micro Mo
Slide 16: Micro Banking Assets
Micro Banking Assets Micro Banking Asset Growth (₹ in Billion) Number of Active Micro Borrowers (Mn) 10.5 9.49 401 386 8.7 309 Dec 18' Dec 19' March 19' Dec 18' Dec 19' March 19' Micro Loan Disbursement (₹ in Billion) 193.24 146.81 145.62 123.2 132.51 108.47 119.87 94.72 96.41 72.19 Sep-17 Dec-17 Ma
Slide 17: Non Micro Assets
Non Micro Assets Non Micro Banking Asset growth (₹ in Billion ) Product wise Advances – Non Micro (₹ in Billion) 253.56 100% 3.18 190.78 10.62 90% 4.50 80% 4.5 46.81 61.61 70% 14.34 60% 19.87 Dec 18' Dec 19'# March 19' 50% 40% # Dec-19 merged non-micro advances including GRUH; 15.92 excluding GRUH a
Slide 18: Liabilities Profile
Liabilities Profile Deposits Growth (₹ in Billion) Retail to Total Deposits (%) 84.8% 76.2% 77.4% 549.08 346.39 360.69 TD Dec 18' Dec 19' March 19' Savings CASA (%) 202.97 Current 41.4% 34.3%# 40.8% 160.09 114.22 Dec 18' Dec 19' March 19' 29.20 28.30 Dec 18' Dec 19' # Excluding GRUH Term Deposits; C
Slide 19: Bandhan GRUH Loans
Bandhan GRUH Loans CUSTOMERS Average loan to PSL Porfolio value Salaried Self Employed Average LTV 17% PSL 44.14% 55.86% Non-PSL 67% 69% 83% 66% Dec' 19 Dec'18 Mar'19 Portfolio AVERAGE FOIR* Type of Property 4.31% Ouststanding Average FOIR 1.75% 0.32% Flats 9.90% Hosuing 29.84% Raw Mortgage Houses/B
Slide 20: Financial Performance
Financial Performance Total income (₹ in Billion) PAT (₹ in Billion) Net Interest Income Other Income Total Income 19.52 1 55.59 10.63 7.31 18.99 3.31 13.58 3.58 44.96 2.34 15.41 11.24 Q3 FY 19 Q3 FY 20* FY19 Q3 FY 19 Q3 FY 20* FY19 Cost to Income Ratio Operating expenses to Average Assets (Annualiz
Slide 21: Financial Performance
Financial Performance ROAA & ROAE (Annualized) Spread (Annualized) Yield Cost of funds (Excl Cap.) Spread ROAA ROAE 20.0% 19.0% 15.4% 15.4% 14.0% 12.5% 9.1% 9.1% 2.9% 3.5% 4.2% 7.2%6.8% 6.3% 6.3% 1 Q3 FY19 Q3 FY20* FY19 1. After taking additional provision of ₹ 2 Billion, Excluding additional provis
Slide 22: Financial Performance
Financial Performance Segmental GNPA movement - (₹ in Billion) Gross NPA and Net NPA 11.82 Gross NPA (%) Net NPA 10.64 2.41% 1.93% 2.04% 5.93 Others 0.70% 0.81% 0.58% 5.95 3.01 Gruh 2.13 2.88 Micro Dec 18' Dec 19* 1 March 19' 2.56 Sep' 19 Dec' 19 Credit Cost (Annualized) 5.70% Credit Cost - NPA Cred
Slide 23: Profit & Loss Statement (IN ₹ Billion)
Profit & Loss Statement (IN ₹ Billion) Particulars Q3 FY 20 Q3 FY 19 YoY% Q2 FY 20 QoQ% (Merged) (Standalone) (Merged) Interest Income 27.18 16.50 64.77% 26.90 1.03% Interest expenses 11.77 5.26 123.96% 11.61 1.38% Net Int. Income (NII) 15.41 11.24 37.10% 15.29 0.77% Non Interest Income 3.58 2.34 52
Slide 24: Balance Sheet (IN ₹ Billion)
Balance Sheet (IN ₹Billion) As at As at % Change 31st Dec 2019 31st March 2019 Particulars Capital & Liabilities Capital 16.10 11.93 34.95% Reserves & Surplus 131.08 100.09 30.96% Shareholder Funds 147.18 112.02 31.39% Deposits 549.08 432.32 27.01% Borrowings 119.60 5.21 2195.59% Other liabilities a
Slide 25: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Billion) CARE AA-; Stable (Double A Minus) CARE Ratings Unsecured Subordinated Non - Outlook: Stable) 1.60 Convertible Debenture [ICRA]AA; Stable (Double A; ICRA Outlook: Stable) [ICRA] AA; Stable Non-Co
Slide 26: Our Board & Management
Our Board & Management 25
Slide 27: Management Team
Experienced and professional team… Chandra Shekhar Ghosh Sudhin Bhagwandas Choksey MD & CEO Executive Director (Designate) Founder of BFSL, has 27 years of experience in the field of 35+ years experience in financial industry. microfinance and development Previously served as Managing Director
Slide 28: Board of Directors
… backed by a strong independent Board Dr. Anup Kumar Sinha Chandra Shekhar Ghosh Chairman MD & CEO Economist with Ph.D from University of Southern California Has significant experience in the field of microfinance Served as Professor of Economics at IIM Calcutta for 25 years Awarded ‘Outsta
Slide 29: Awards and accolades
Awards and accolades Businessworld Magna Awards 2019 Bandhan Bank won two awards in the small size bank category at the glittering ceremony of Magna Awards 2019 organised by Businessworld magazine in Mumbai. 1. Best Bank 2. Fastest Growing Bank 'Banker of the Year' award was conferred upon Mr. Chand
Slide 30: Awards and accolades
Awards and accolades Banker of the Year by Business Standard Mr. Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer was declared as the Business Standard ‘Banker of the Year’ for 2018- 19 on November 14, 2019. He received this award for the all-round performance of Bandhan Bank.
Slide 31: Thank You
Thank You Investor.relations@bandhanbank.com 30