Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q2 FY2020-21 Earnings Presentation
36 slides from Bandhan Bank's earnings presentation, November 2020
Slide 1: Investor Presentation Q2 FY2020-21
Investor Presentation Q2 FY2020-21 November 2020 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 Bandhan Bank - Overview Snapshot of operations Q2 FY 2020-21 Loan portfolio (on book + off book) for Q2 FY 20-21 grew 19.4% Y-o-Y Total Deposits ₹ 661.3 bn Deposits grew by 34.4% Y-o-Y in Q2 FY 20-21; Retail Deposit to Total Deposit at 77% Gross NPA is at 1.2% & Net NPA is at 0.
Slide 5: Overall business has grown 11% during H1 FY21 despite the Covid environment
Overall business has grown 11% during H1 FY21 despite the Covid environment Overall Business Growth (₹ in Billion) 11% 1,427.5 Industry YTD Bandhan YTD 1,349.4 1,289.3 766.2 - 1.0% 6.6% 718.5 743.3 570.8 606.1 661.3 5.1% 15.8% Mar'20 Jun'20 Sep'20 Deposit Advance 5 Source: RBI for Industry data, dat
Slide 6: While industry credit growth remains weak, our strategic thrust in EEB, SME and Mortgages stands out
While industry credit growth remains weak, our strategic thrust in EEB, SME and Mortgages stands out Quarterly Incremental Credit Growth EEB 8% (₹ Bn) ₹ Bn 498 64 475 462 Mar'20 Jun'20 Sep'20 4,234 SME 20% 4,170 ₹ Bn 23 262 32 34 239 28 25 Mar'20 Jun'20 Sep'20 -1,252 -1,277 MORTGAGE 5% ₹ Bn Q4 FY 20
Slide 7: In EEB, H1's tepid growth is partly seasonality induced
In EEB, H1’s tepid growth is partly seasonality induced; growth in H1FY21 stronger than recent years EEB portfolio growth 26.8% 28.6% 24.9% 15.2% 9.3% 6.7% 3.6% 4.8% 2.8% 1.8% 1.2% 1.4% 0.1% 2.3% -9.7% 1.5% 7.8% 7
Slide 8: Highest QoQ CASA growth this quarter amongst previous quarters
Highest QoQ CASA growth this quarter amongst previous quarters 9.6 26.5 21.9 14.4 28.1 300 20.0% 16.4% 12.5% 250 11.6% 15.0% 200 6.3% 150 10.0% 253 225 6.9% 210 100 188 162 5.0% 50 0 0.0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 CASA (₹ Bn) CASA Growth % CASA Growth (₹ Bn.) 38.2% 36.8% 37.1% 34.3% 32.9% S
Slide 9: EEB Collection Efficiency
EEB Collection Efficiency EEB Collection Efficiency (Excluding arrears) 94% 95% 89% 91% 67% 68% As on 30th June'20 for the month Sep'20 (Monthly Avg.) Upto 27th Oct'20 (Monthly Avg.) Value % Customers % No Of Customers making Payment 99% 99% 98% 95% 75% Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 S
Slide 10: About 94% of our EEB customers have started repaying their loan installments in the month of Sep 20
About 94% of our EEB customers have started repaying their loan installments in the month of Sep 20 Severely affected Moderately affected Least affected (top 5 states) (Next 20 states) (Rest) Share of customers 98% paying 94% 93% Share of Covid 58% 38% 4% Cases 10 Source: www.covid19india.org; based
Slide 11: Collection Efficiency in Housing Finance & Commercial Banking vertical near to Pre-Covid Levels
Collection Efficiency in Housing Finance & Commercial Banking (CB) vertical near to Pre-Covid Levels CB segment wise collection efficiency 100% 100% 100% 98% 97% 96% 96% 91% 88% July'20 Aug'20 Sep'20 SME NBFC CB Total Housing Finance Collection efficiency 85% 98% 77% Jul'20 Aug'20 Sep'20 11
Slide 12: Business & Financial Overview
Business & Financial Overview 12
Slide 13: Asset Book Mix
Asset Book Mix Total Advances (₹ in Billion) 766.2 743.3 Sep’19 641.9 29.9% EEB 65.7 7.3 66.3 6.6 Retail 61.1% 51.3 CB 6.6 195.3 195.6 8.0% Mortgages 1.0% 192.0 Sep’20 497.8 474.8 392.0 25.4% 62.0% 8.6% 1.0% Sep'19 Sep'20 June'20 3.0% EEB Mortgages EEB Group EEB Individual Retail CB Mortgages 13 Ret
Slide 14: Emerging Entrepreneurs Business
Emerging Entrepreneurs Business Emerging Entrepreneurs Asset Growth Number of Active Borrowers (Mn) (₹ in Billion) 497.8 474.8 10.9% 23.3 21.9 392.0 11.2 11.2 0.6 474.6 452.9 319.4 10.1 Sep'19 Sep'20 June'20 Group Based Individual Sep'19 Sep'20 June'20 Disbursements Post Moratorium from 1st Sep – 27
Slide 15: Housing Finance
Housing Finance Housing Asset Bifurcation (₹ in Billion) Housing Asset Segment wise (in %) 185.0 187.2 187.5 8.3 6.3 7.2 4.4% 3.4% 3.9% 20.7 21.8 21.6 11.2% 11.6% 11.5% 156.0 159.1 158.7 84.4% 85.0% 84.6% Sep'19 Sep'20 June'20 Sep'19 Sep'20 June'20 Housing LAP Construction Housing LAP Construction *
Slide 16: Commercial Banking (CB) & Retail Assets
Commercial Banking (CB) & Retail Assets Product wise CB Assets (₹ in Billion ) CB & Retail Disbursements – (₹ in Billion) 65.7 66.3 14.6 51.3 31.5 33.7 20.4 6.2 8.5 7.6 27.2 9.6 24.7 23.5 Sep'19 Sep'20 June'20 12.8 NBFC -MFI NBFC-Others* SME 7.4 3.4 Product wise Retail Assets (₹ in Billion ) 7.3 2.2
Slide 17: Liabilities Profile
Liabilities Profile Deposits Growth (₹ in Billion) Retail to Total Deposits (%) 78% 77% 78% 661.3 606.1 Sep'19 Sep'20 June'20 492 CASA (%) 408.5 38.2% 37.1% 381.4 330.1 32.9% Sep'19 Sep'20 June'20 220.0 194.8 135.3 Average SA Balance Per Customer (₹ in 000’) 26.6 32.8 29.9 General Banking EEB Sep'19
Slide 18: Financial Performance
Financial Performance Total income (₹ in Billion) Operating Profit (₹ in Billion) Net Interest Income Other Income Total Income 16.3 15.8 13.1 23.1 Q2 FY 20 Q2 FY 21 Q1 FY 21 22.0 18.9 PAT (₹ in Billion) 3.8 3.9 3.6 9.7 9.2 5.5 19.2 18.1 15.3 Q2 FY 20 Q2 FY 21 Q1 FY 21 Q2 FY 20* Q2 FY 21# Q1 FY 21#
Slide 19: Financial Performance
Financial Performance Capital Adequacy Ratio (CRAR) NIM (Annualized) Tier I Tier II Total 10.00% 8.2% 8.2% 8.0% 25.1% 25.7% 26.5% 2.1% 3.5% 3.2% 23.0% 22.2% 23.2% 0.00% Sep'19 Sep'20 June 20' Q2 FY 20 Q2 FY 21 Q1 FY 21 CRAR for Sep’20 after considering H1 FY21 Profits is 27.8% Spread (Annualized) Yi
Slide 20: Financial Performance
Financial Performance ROAA & ROAE (Annualized)# ROAA ROAE 28.3% 22.5% 14.1% 4.8% 3.6% 2.3% Q2 FY20 Q2 FY21# Q1 FY21# Cost to Income Ratio Operating expenses to Average Assets (Annualized) 30.8% 29.4% 27.9% 2.8% 2.6% 2.5% Q2 FY20 Q2 FY21 Q1 FY21 Q2 FY20 Q2 FY21 Q1 FY21 # ROAA & ROAE for Q2 FY21 is af
Slide 21: Financial Performance
Financial Performance Segmental GNPA movement - (₹ in Billion) Gross NPA and Net NPA Gross NPA (%) Net NPA 1.8% 10.6 1.4% 10.1 1.2% 8.7 0.6% 0.5% 0.4% 5.9 5.3 Sep'19 Sep'20 June 20' Others* 5.3 Credit Cost (Annualized) Housing EEB 4.9 % 2.1 2.7 2.1% 2.4 2.6 2.1 1.0 1.0 % 1.8% 4.5% Sep' 19 Sep' 20 Ju
Slide 22: Geographical Distribution
Geographical Distribution Banking Outlets Focus on serving the rural & underbanked population 4,701 4,559 4,220 Banking Outlets as on 30th Sep 2020* 1,045 1,018 10% Mtero 1,000 35% 19% Urban 36% Semi-Urban Rural *Basis original classification at the time of opening 3,656 3,541 3,220 Diversifying pre
Slide 23: Profit & Loss Statement
Profit & Loss Statement (IN ₹ Bn) Particulars Q2 FY 21 Q1 FY 20 QoQ% Q2 FY 20 YoY% FY 20 Interest Income 31.98 30.18 5.96% 26.90 18.87% 108.86 Interest expenses 12.75 12.07 5.63% 11.61 9.82% 45.62 Net Int. Income (NII) 19.23 18.11 6.18% 15.29 25.75% 63.24 Non Interest Income 3.82 3.87 -1.29% 3.60 6.
Slide 24: Balance Sheet
Balance Sheet (IN ₹Billion) As at As at Particulars % Change 30th Sep 2020 31st Mar 2020 Capital & Liabilities Capital 16.10 16.10 0.00% Reserves & Surplus 150.57 135.85 10.84% Shareholder Funds 166.67 151.95 9.69% Deposits 661.28 570.82 15.85% Borrowings 140.10 163.79 -14.46% Other liabilities and
Slide 25: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Billion) Subordinated Tier II Non - CARE AA-; Stable CARE Ratings 1.60 Convertible Debenture [ICRA]AA; Stable ICRA [ICRA] AA; Stable ICRA Non-Convertible Debenture # 50.75** CRISIL AA/Stable Term Loans F
Slide 26: The next five years.....
The next five years….. 26
Slide 27: The Bank's Vision 2025
The Bank’s Vision 2025 Banker for the new Indian, through Serving needs of every step of their emerging India aspiration journey Vision-2025 Value based Enabling ‘employer of choice’ entrepreneurs grow – to attract high bigger quality, motivated talent 27
Slide 28: EEB Channels to provide one-stop solution for all banking needs
EEB Channels to provide one-stop solution for all banking needs to mid and low income group customers Combo Branch Bank Branch Banking Unit • Converting Vintage EEB borrowers to individual loan and helping them to Banking Unit • After becoming a graduate to MSMEs Bank, BUs cater to • Banking Units t
Slide 29: We aim to expand & diversify asset book
We aim to expand & diversify asset book Rapid diversification in other non-EEB ADVANCE MIX segments in the next 5 years Housing • In addition to GRUH centers, Banking outlets to EEB Group EEB Individual* Mortgages CB* generate leads Retail • Hence, in addition to Affordable Housing segment focus wil
Slide 30: Expansion and Diversification of distribution network to further strengthen deposit book
Expansion and Diversification of distribution network to further strengthen deposit book • Plan to make customer accounts more sticky by cross selling additional products Sep'20 9% 13% 6% • Building digital channel for on-boarding and superior customers experience 7% • Focus on current account 12% •
Slide 31: Focus on further strengthening our digital strategy
Focus on further strengthening our digital strategy Health Wedding Key Capabilities Business Travel Building customer lifetime value through customer centricity Finance getting seamlessly embedded in Entertainment Retirement end user journeys (“Money for Life”) Multi-proposition & service plat
Slide 32: Our Board & Management
Our Board & Management 32
Slide 33: Management Team
Experienced and professional team… Chandra Shekhar Ghosh Sudhin Bhagwandas Choksey MD & CEO Head, Housing Finance 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 at GRUH
Slide 34: Board of Directors
…backed by a strong independent Board Dr. Anup Kumar Sinha Chandra Shekhar Ghosh Non-executive 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 Aw
Slide 35: Awards and accolades
Awards and accolades Businessworld Magna Awards 2019 Banker of the Year by Business Standard Mr. Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer Bandhan Bank won two awards in the small size bank was declared as the Business Standard category at Magna Awards 2019 by Businessworl
Slide 36: Thank You
Thank You Investor.relations@bandhanbank.com 36