Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — FY2017-18 Earnings Presentation
31 slides from Bandhan Bank's earnings presentation, Apr 27, 2018
Slide 1: Exchange filing cover letter: Investor Presentation
Ref no: BBL /29 -C/18-19 April 27, 2018 The National Stock Exchange of India Limited BSE Limited The Listing Department Dept of Corporate Services Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dala Street, Fort, Mumbai – 400051 Mumbai – 400001 Fax No: 022-26598237/38/66418124/25 /
Slide 2: Investor Presentation – FY 2017-18
INVESTOR PRESENTATION – FY 2017-18 April 2018
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 & Strengths
KEY HIGHLIGHTS & STRENGTHS 3
Slide 5: Key Highlights
KEY HIGHLIGHTS Bandhan Bank - Overview Snapshot of operations (31st March 2018) Successfully got listed on Listed on Bombay Stock Exchange (BSE) & National Stock Exchange ( NSE) Total Deposits ₹ 338.7 bn Loan portfolio (on book + off book) grew 37.4% Y-o-Y Total loans Deposits grew by 45.8% in
Slide 6: Geographical Distribution
GEOGRAPHICAL DISTRIBUTION 5
Slide 7: Geographical Distribution
GEOGRAPHICAL DISTRIBUTION Banking Outlets Focus on serving the rural & 3,700 underbanked population 3,283 2,678 Metro, 10% Rural, Urban, 2443 2764 37% 2022 19% 656 840 936 Branches DSCs Banking Outlets Semi-urban, 34% Multi channel distribution network with a mix of branches and digital Bandhan Bank
Slide 8: Geographical Distribution
GEOGRAPHICAL DISTRIBUTION Branch Mix- State Wise Significant presence in under- penetrated East and North East India Banking Outlets as on 31st March 2018 West South 8.60% 4.30% North 5.50% Central East 14.40% 52.10% North East 15.10% In East & North East Regions, Bandhan Bank has the highest distri
Slide 9: Business Overview
BUSINESS OVERVIEW 8
Slide 10: Asset Overview
ASSET OVERVIEW Advances Growth (₹ in Billion) Number of Active Borrowers (in Million) 323.4 7.83 6.55 6.92 235.4 155.8 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 Composition of Advances (in %) Higher PSL Portfolio 6% 99% 91% 86% 94% 1% 9% 14% FY 16 FY 17 FY 18 Priority sector advances (as a % of advances)
Slide 11: Micro Banking Assets
MICRO BANKING ASSETS Micro Banking Asset Growth (₹ in Billion) Number of Active Micro Borrowers (in Mn) 276.5 7.7 6.36 6.83 213.9 154.2 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 Gross increase in new borrowers for FY18 at 20.2% Micro Loan Disbursements (₹ in Billion) Lending Rates -Micro Banking 22.40% 38
Slide 12: Non-Micro Banking Assets
NON-MICRO BANKING ASSETS Product wise Disbursements – Non Micro Total Disbursement - Non Micro Banking Asset Advances (₹ in Billion) (₹ in Billion) Retail SME Small Enterprise Loan 29.49 21.63 4.09 15.34 16.39 6.82 10.50 1.47 4.10 1.00 Q4 FY 17 Q4 FY 18 FY 16 FY 17 FY 18 7.31 Non Micro Banking Portf
Slide 13: Liabilities Profile
LIABILITIES PROFILE Deposits Growth (₹ in Billion) Number of Customers (in Million) Micro Banking General Banking 338.69 13.01 9.83 10.4 2.4 95.15 6.77 1.4 232.30 1.14 8.69 9.08 10.6 6.77 68.00 23-Aug-15 FY 16 FY 17 FY 18 127.37 CASA (%) 120.90 95.90 34.3% 29.4% 75.00 92.10 21.6% 19.80 53.90 23.70 1
Slide 14: 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-(Double A Minus; ICRA Outlook: Positive) [ICRA]AA-(Double A Minus
Slide 15: Liabilities Profile
LABILITIES PROFILE Retail to total Deposits (%) Moving towards a more stable and cheaper source of funding 70.7% 71.9% Deposits 0% 38.0% Borrowings 100% 23 Aug 2015 FY16 FY17 FY18 Borrowings Average SA Balance (₹ in 000’) 20% General Banking Micro Banking Deposits 80% March 2016 2.10 2.00 Borrowings
Slide 16: Financial Overview
FINANCIAL OVERVIEW 15
Slide 17: Financial Performance
FINANCIAL PERFORMANCE Total income (₹ in Million) PAT (₹ in Million) 13.46 Net Interest Income Other Income Total Income 11.12 3.22 3.88 3.00 37.38 Q4 FY17 Q3 FY18 Q4 FY18 FY 17 FY 18 28.15 Operating expenses to Average Assets (%) 7.06 4.2% 4.1% 3.9% 3.9% 3.7% 4.11 10.66 30.32 8.19 8.9 24.04 1.58 2.
Slide 18: Financial Performance
FINANCIAL PERFORMANCE ROAA & ROAE 30.2% ROAA ROAE 27.7% 28.5% 26.0% 22.5% 4.7% 3.7% 4.1% 4.5% 4.1% Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Cost to Income Ratio Fee Income to Total Income Ratio 35.3% 35.5% 34.0% 36.3% 35.0% 11.8% 13.1% 12.8% 10.9% 9.5% Q4FY17 Q3FY18 Q4FY18 FY17 FY18 Q4FY17 Q3FY18 Q4FY18 FY
Slide 19: Financial Performance
FINANCIAL PERFORMANCE Capital Adequacy Ratio CASA Tier I Tier II 24.8% 31.5% 34.3% 29.4% 21.6% 1.6% 1.2% FY17 FY18 FY16 FY17 FY18 Gross NPA, Net NPA and Provisioning Coverage Ratio Gross NPA (%) Net NPA 1.59% 1.15% 0.76% 0.54% 0.38% 0.26% March 17' Dec 17' March 18' 18
Slide 20: Financial Performance
FINANCIAL PERFORMANCE Spread % Yield Cost of funds (Excl Cap.) Spread 16.7% 15.4% 17.0% 15.4% 14.6% 9.6% 9.3% 7.1% 8.6% 8.4% 7.7% 8.7% 6.8% 6.2% 6.7% Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 NIM Credit Cost 10.7% Credit Cost - NPA Credit Cost - Standard 10.4% 1.60% 1.51% 9.7% 1.50% 9.6% 9.3% 0.70% 0.75% 1.
Slide 21: Profit & Loss Statement (in ₹ Million)
PROFIT & LOSS STATEMENT (IN ₹ MILLION) Particulars Q4 FY 17 Q4 FY 18 YoY% Q3 FY 18 Q0Q% FY 17 FY 18 YoY% Interest Income 10,783 13,506 25.25% 11,780 14.69% 39,087 48,023 22.86% Interest expenses 3,886 4,872 25.37% 4,460 9.19% 15,052 17,701 17.60% Net Int. Income (NII) 6,897 8,634 25.18% 7,320 18.03%
Slide 22: Balance Sheet (in ₹ Million)
BALANCE SHEET (IN ₹MILLION) Particulars As at As at st 31 March 2018 31 March 2017 Capital & Liabilities Capital 11,928 10,951 Reserves & Surplus 81,891 33,513 Shareholder Funds 93,819 44,465 Deposits 338,690 232,287 Borrowings 2,850 10,289 Other liabilities and provisions 7,741 15,320 Total 443,101
Slide 23: Shareholding & Management
SHAREHOLDING & MANAGEMENT 22
Slide 24: Bandhan Group Structure & Shareholding
BANDHAN GROUP STRUCTURE & SHAREHOLDING North East Bandhan Financial Financial Employees Caladium IFC IFC FIG SIDBI Others Inclusion Trust Inclusion Trust Welfare Trust 32.91% 7.82% 14.61% 16.70% 13.59% 2.85% 8.13% 3.39% Bandhan Financial Services Ltd (BFSL) 100.00% Bandhan Financial Holding Ltd (BFH
Slide 25: Shareholding Pattern – Bandhan Bank
SHAREHOLDING PATTERN – BANDHAN BANK Resident Induviduals/HUFs Others AIFs Banks/Fis/NBFCs/Trusts 2.00% 3.55% 0.13% 0.40% Bodies Corporate 0.59% Mutual Funds 1.43% Foreign Investors 9.62% Promoter (Holding Company) 82.28% As on 31st March 2018 24
Slide 26: Experienced and Professional Team
EXPERIENCED AND PROFESSIONAL TEAM… Chandra Shekhar Ghosh Rahul Johri MD & CEO Head, Retail Banking Founder of BFSL, has ~25 years of experience in the field of 23+ years of experience across multinational banks microfinance and development Previously worked as Head of Consumer Banking and memb
Slide 27: Backed by a Strong Independent Board
… BACKED BY A STRONG INDEPENDENT BOARD Chandra Shekhar Ghosh Harun Rashid Khan MD & CEO Director Has significant experience in the field of microfinance Retired as Deputy Governor of Reserve Bank of India Awarded ‘Outstanding Leadership Award’ by Dhaka University Instrumental in formulation
Slide 28: Awards and Accolades
AWARDS AND ACCOLADES Mr. Ghosh received the Lifetime ‘Best Private Sector Bank’ in the Achievement Samman by Friends of category – Best Private Sector Bank – Kolkata in December 2017 by Dun & Bradstreet Banking Awards in August 2017 Bandhan Bank bagged ‘The Hindu Business Line Changemaker Award’ in
Slide 29: Strategy for Future Growth
STRATEGY FOR FUTURE GROWTH 28
Slide 30: Strategy for Future Growth
STRATEGY FOR FUTURE GROWTH Maintain focus on micro lending while expanding further into other retail and SME lending Open branches and DSCs to grow customer base for micro loans as well as the rural affluent and mass affluent population to grow retail and SME lending Boost share of non-interest Co
Slide 31: Thank You
THANK YOU @\ Bandhan Bank