Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q4 FY2024 Earnings Presentation
44 slides from Bandhan Bank's earnings presentation, May 17, 2024
Slide 1: Exchange cover letter for results and presentation
Ref. No.: BBL/071/2024-25 May 17, 2024 BSE Limited National Stock Exchange of India Limited Dept. of Corporate Services The Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G Dalal Street, Bandra Kurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 400051 BSE Scrip Code: 541153
Slide 2: Bandhan Bank's balance sheet further strengthens
PRESS RELEASE Bandhan Bank’s balance sheet further strengthens Improvement in asset quality along with growth in advances and deposits Deposits grew 25% YoY reaching Rs.1.35 lakh crore as of end-March 2024 Gross advances grew 14.5% YoY in FY24, reaching Rs.1.25 lakh crore as of end-March 2024
Slide 3: Press release: asset quality, balance sheet, deposits and advances
During the quarter, as a prudent measure and in accordance with its policy, the Bank has technically written off loans amounting to Rs.3,852 crores. The provisions charged to the Profit and Loss for Q4 FY24 were higher at Rs.1,774 crore compared to Rs. 735 crore in Q4 FY23 The profit after tax for t
Slide 4: Dividend and distribution network
Dividend The Board of Directors recommended a dividend of Rs.1.50 per equity share of Rs.10 for the year ended March 31, 2024, as against Rs.1.50 per equity share of Rs.10 for the previous year. This would be subject to requisite approvals. The record/book closure dates will be announced in due cour
Slide 5: Investor Presentation Q4FY24
Investor Presentation Q4FY24 May’ 2024 1
Slide 6: 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 7: Key Highlights
Key Highlights 3
Slide 8: Key Highlights
Key Highlights • Loan portfolio (on book + off book + TLTRO + PTC) grew by 14.3% YoY (7.6% QoQ). However, Total Deposits Total Loans and Advances1 adjusting for the technical write-off, growth is at 18% YoY in FY24 • Deposits grew 25.1% YoY. CASA + Retail TD to total deposit is at 69%. ₹1,352.0 ₹ 1,
Slide 9: Business & Financial Overview
Business & Financial Overview 5
Slide 10: Loans & Advances Mix
Loans & Advances Mix All amount in ₹ Bn. Share of Loan Book 14.3%# Mar-24 7.6% CB 21.6% 1247.2 Retail 4.5% 1159.4 1091.2 Housing 24.0% 269.8 250.0 EEB Individual* 17.2% 202.0 55.8 55.4 44.9 EEB Group 32.7% 299.2 269.0 288.5 Dec-23 CB 21.6% 564.9 576.0 622.4 Retail 3.9% Housing 24.9% Mar'23 Dec'23 Ma
Slide 11: Emerging Entrepreneurs Business
Emerging Entrepreneurs Business Emerging Entrepreneurs Asset Growth (₹ in Bn) Number of Active Borrowers (Mn) 10.2% 8.1% 13.7 13.6 13.8 622.5 576.0 564.9 Mar'23 Dec'23 Mar'24 215.0 188.3 EEB Loan Disbursement (₹ in Bn) 184.3 651.5 572.3 194.3 173.5 407.5 210.9 228.1 380.6 387.7 174.3 398.8 457.1 63.
Slide 12: Housing Finance
Housing Finance Housing Asset Housing HousingAsset Asset Bifurcation (₹ in Bn) Borrowers Bifurcation – Mar’24 Segment Segmentwise wise(in (in%) %) 0.5 11.2% 3.7% 46.5 53.0 0.9% 0.8% 0.8% 299.2 10.8% 8.7% 8.0% 288.5 12.5% 269.0 13.7% 14.4% 2.4 2.4 2.5 26.1 Salaried Self Employed Professionals 31.1 21
Slide 13: Commercial Banking (CB)
Commercial Banking (CB) Product wise CB Assets (₹ in Bn ) NBFC Portfolio – Over 90% in ‘A-’ and above category as per external rating 33.6% AAA AA+ 7.9% A- Others 9% 9% 8% 10% A 269.8 AA 250.0 13% A+ 20% 6% AA- 202.0 25% 128.1 106.5 102.6 CB segment wise Growth 143.5 141.7 Q-o-Q YoY 99.4 -1.3% 42.6%
Slide 14: Retail Assets
Retail Assets Product wise Retail Assets (₹ in Bn ) Retail Disbursements (₹ in Bn) 0.6%# 24.3% 55.4 55.8 0.1 1.7 44.9 13.7 0.9 33.1 8.4 10.3 8.7 36.8 13.7 12.3 7.0 21.9 9.0 13.0 14.6 16.5 9.3 6.2 6.7 Mar'23 Dec'23 Mar'24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Vehicle Personal Gold TD-OD Others 10 #Adjusting
Slide 15: Geographical Distribution of Loans & Advances
Geographical Distribution of Loans & Advances Share of Loans & Advances by States Share of Loans & Advances by Region 39% 40% 40% 8% 7% 7% 20% 20% 8% 8% 8% 21% 8% 8% 9% 12% 12% 12% 11% 12% 13% 25% 25% 24% 8% 9% 8% Mar'23 Dec'23 Mar'24 West Bengal Maharashtra Bihar Gujarat MP Others 17% 17% 17% 6% Fo
Slide 16: Liabilities Profile
Liabilities Profile Deposits Growth (₹ in Bn) CASA + Retail TD to Total Deposits (%) 25.1 % 15.1% 71% 71% 69% Mar'23 Dec'23 Mar'24 1352.0 1,174.2 CASA (%) 1080.7 414.0 337.5 39.3% 311.2 36.1% 37.1% 436.5 412.6 Mar'23 Dec'23 Mar'24 344.9 404.9 Average SA Balance (₹ in 000’) 360.4 357.5 64.2 66.6 96.6
Slide 17: Geographical Distribution of Deposit
Geographical Distribution of Deposit Share of Deposits by States Share of Deposits by Region 35% 36% 35% 11% 12% 14% 5% 4% 4% 4% 3% 4% 5% 5% 6% 10% 10% 8% 9% 11% 8% 11% 12% 13% 43% 43% 40% 10% 10% 11% 5% 4% 4% Mar'23 Dec'23 Mar'24 West Bengal Maharashra Uttar Pradesh Odisha NCT of Delhi Others Categ
Slide 18: Geographical Distribution of Banking Outlets
Geographical Distribution of Banking Outlets Focus on serving the rural & underbanked population Banking Outlets Banking Outlets as on 31st Mar 2024 5.0% 12% 33% 18% 0.8% 37% 6,245 6,297 5,999 1,411 1,647 1,700 Metro Urban Semi-Urban Rural Diversifying presence Mar'24 45% 10% 16% 7% 11% 11% 4,588 4,
Slide 19: Asset Quality
Asset Quality 15
Slide 20: EEB Collection Efficiency
EEB Collection Efficiency Top states Collection Efficiency for the Month Collection Efficiency for the Quarter States For Dec’23 For Mar’24 For Q3 FY24 For Q4 FY24 Excluding Arrears Excluding Arrears 118% 117% 114% 112% West Bengal 99% 99% 99% 99% 99% 99% 99% 98% 96% 96% 95% 94% Assam 99% 100% 99% 1
Slide 21: EEB DPD movement
EEB DPD movement ₹ 10.8 bn; SMA 0 SMA 1 1.9% ₹ 7.4 bn; ₹ 8.1 bn; 1.3% 1.4% ₹ 5.7 bn; 2.3% ₹ 3.8 bn; 1.0% ₹ 4.0 bn; 0.6% 1.4% 0.6% Rest of India 1.7% 1.1% 0.8% 1.3% 0.8% 0.7% 0.8% 1.3% 0.4% 0.4% 1.5% 1.0% 0.6% 0.7% 0.5% Assam 0.5% Mar'23 Dec'23 Mar'24 Mar'23 Dec'23 Mar'24 NPA West Bengal ₹ 13.9 bn; 2
Slide 22: Stress Pool and NPA Analysis
Stress Pool and NPA Analysis All amount in ₹ Bn. EEB Stress Pool - ₹ 41 Bn. 32.1 Month wise Pan Bank Slippage Trend Month Slippage 4.0 4.8 Sept’23 4.6 NPA SMA 2 SMA 1 Oct’23 6.3 Nov’23 3.9 EEB Book - Vintage Analysis * % of Disbursement Qtr Disbursement SMA1* SMA2* NPA* Dec’23 3.7 Q1FY23 82 0.14% 0.
Slide 23: NPA movement
NPA movement All amount in ₹ Bn. Particulars Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Opening GNPA (A) 69.6 53.0 69.6 78.7 81.4 Fresh Slippages (B) 11.2 13.6 13.2 13.9 10.2 Reductions (C) : - Recoveries & Upgrades 4.7 2.8 4.1 4.1 5.2 - Technical Write offs - - - - 38.5 NPA Sale to ARC (D) 23.2 - - 7.2 - E
Slide 24: Segmental NPA and Credit Cost
Segmental NPA and Credit Cost Segmental GNPA movement (₹ in Bn) Credit Cost – Improving in FY24 5.8% 4.3% 81.4 2.9% 3.4% 2.5% 1.0 Q4 FY23 Q3FY24 Q4FY24 FY23 FY24 11.4 Increase in credit cost in Q4FY24 was primarily on account of technical write-off of Rs 38.5 Bn. 4.7 Excluding the impact of write-of
Slide 25: Financials
Financials 21
Slide 26: Financial Performance (1/2)
Financial Performance (1/2) Net Interest Income (₹ in Bn) Operating Profit (₹ in Bn) 70.9 66.4 11.5% 18.0 16.6 18.4 Q4 FY 23 Q3FY24 Q4FY 24 FY 23 FY 24 Operating profit was higher in FY23 by ₹ 4.3 bn (net) due to portfolio sold to ARC 15.9% 13.5% 103.3 PAT (₹ in Bn) 92.6 22.0 22.3 24.7 25.3 28.7 8.1
Slide 27: Financial Performance (2/2)
Financial Performance (2/2) Spread (Annualized) 12.7% 13.4% 13.8% 12.4% 13.4% 5.8% 6.9% 6.6% 6.8% 6.9% 6.9% 5.6% 6.8% 6.6% 6.8% Q4FY23 Q3FY24 Q4FY24 FY 23 FY 24 Yield Cost of funds (Excl Cap.) Spread Capital Adequacy Ratio (CRAR) NIM (Annualized) 19.8 % 17.9 % 18.3% 1.1% 1.0% 1.1% 19.8% 19.8% 18.3%
Slide 28: Break up of Non Interest Income
Break up of Non Interest Income All amount in ₹ Mn. Details of other Income Q4FY23 Q3FY24 Q4FY24 QoQ YoY FY23 FY24 YoY Processing Charges 3,020 2,504 3,283 31.1% 8.7% 8,220 9,428 14.7% Third Party Income 936 606 1,284 111.9% 37.2% 2,394 2,835 18.4% Collection fees from ARC 550 233 264 13.4% -51.9% 6
Slide 29: Financial Performance
Financial Performance ROA & ROE (Annualized) Operating expenses to Average Assets ROA ROE (Annualized) 17% 14% 3.6% 3.7% 4.1% 3.8% 3.3% 12% 11% Q4FY23 Q3FY24 Q4FY24 FY23 FY 24 Cost to Income Ratio 2.2% 1.9% 1.6% 1.4% 1% 46.1% 48.4% 46.8% 0.1% 42.1% 39.5% Q4FY23 Q3FY24 Q4FY24 FY23 FY24 In Q4FY24, exc
Slide 30: Profit & Loss Statement
Profit & Loss Statement (In ₹ Bn.) Particulars Q4FY23 Q3FY24 Q4FY24 QoQ YoY Qtr FY23 FY24 YoY Interest Income 42.7 46.7 51.9 11.2% 21.6% 159.0 188.7 18.6% Interest expenses 18.0 21.4 23.2 8.6% 29.3% 66.5 85.4 28.6% Net Int. Income (NII) 24.7 25.3 28.7 13.5% 15.9% 92.6 103.3 11.5% Non Interest Income
Slide 31: Balance Sheet
Balance Sheet (IN ₹Bn) Capital & Liabilities 31st Mar 2023 31st Mar 2024 % Change Capital 16.1 16.1 0.0% Employees stock options outstanding 0.1 0.4 266.7% Reserves & Surplus 179.6 199.5 11.1% Shareholder Funds 195.8 216.1 10.3% Deposits 1080.6 1352.0 25.1% Borrowings 247.1 163.7 -33.7% Other liabil
Slide 32: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Bn) RR1+ 0.58 Security Receipts w.r.t portfolio sale to ARC RR1 CRISIL 2.24 RR2 2.05 [ICRA]AA (Negative) ICRA Non-Convertible Debenture # 12.95** CRISIL AA-/Stable CRISIL Term Loans From Bank [ICRA]AA (N
Slide 33: Digital Offering and Indices
Digital Offering and Indices 29
Slide 34: Strengthened digital offering with advanced Mobility and Internet banking applications
Strengthened digital offering with launch of advanced Mobility and Internet banking applications Features Competitive product offering with 175 + features Onboarding & Activation 360 degree view One view of all banking Simplified registration & login relationships process using multiple options Depo
Slide 35: Traction evident on key digital indices
Traction evident on key digital indices 96% 91% 64% 46% of retail transactions Saving Accounts MF application RD volume are digital opened digitally # sourced digitally booked digitally 26%* 47%* 41% * 48%* growth in digital Growth in Login growth in digital growth in UPI registration In Corporate I
Slide 36: Bandhan Bank Neo+ Digital Savings Account with eKYC
Bandhan Bank Neo+ Digital Savings Account with eKYC 6.5x YoY Growth in Accounts Opened Fully online Real time - process validation of Pan and Aadhaar 1.9x Higher Activation of Neo+ Resume journey KYC verification Accounts vis-à-vis Non Digital with pre-filled data via video call Accounts 32
Slide 37: Our Board & Management
Our Board & Management 33
Slide 38: Experienced and professional team (1/3)
Experienced and professional team… Core Management Team (1/3) Chandra Shekhar Ghosh Ratan Kumar Kesh Managing Director and Chief Executive Officer Executive Director & Chief Operating Officer • Founder of BFSL, has 30 years of experience in the field of microfinance and development • 28+ years of ex
Slide 39: Experienced and professional team (2/3)
Experienced and professional team… Core Management Team (2/3) Hirak Joshi Manoj Mauni Head – Retail Assets Chief Technology Officer • 25 years of experience in BFSI sector • 27+ years of experience in the field of Banking, Insurance, shipping and Financial Sector • Previously worked as Business Head
Slide 40: Experienced and professional team (3/3)
Experienced and professional team… Core Management Team (3/3) Satyajit Ghosh Indranil Banerjee Head – Group Loans Company Secretary • Over 25 years of expertise in the microfinance industry • 20+ years experience in financial industry • Previously worked with different MFI’s in various leadership ro
Slide 41: Strong independent Board
Strong independent Board Board of Directors Dr. Anup Kumar Sinha Chandra Shekhar Ghosh Rajinder Kumar Babbar Non-executive (Independent) Chairman Managing Director & CEO Executive Director & Chief Business Officer - Has more than three decades of experience in banking - Economist with Ph.D from Univ
Slide 42: Awards and accolades
Awards and accolades 38
Slide 43: 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 44: Thank You
Thank You investor.relations@bandhanbank.com 40