Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Investor Presentation (October 2019)
11 slides from Bandhan Bank's investor presentation, October 2019
Slide 1: Bandhan Bank Ltd
Bandhan Bank Ltd Largest MFI Player has unique business Model
Slide 2: Journey from MFI to Bank
Journey from MFI to Bank 2001 2015 2018 Bandhan 2009 Bandhan Emerged as conceptualised; received the the 8th most commenced Microfinance universal valued bank microfinance portfolio banking on the day of activities as an transferred licence from listing NGO in rural from NGO to the RBI on itself, ba
Slide 3: About the Industry
About the Industry As per MFIN as on 31 March 2019, the microfinance industry has a total loan portfolio of INR 1.87tn, representing a YoY growth of 38%. The share of portfolio outstanding of the various players indicate that the bank share was INR 61,046 cr (33%), NBFC- MFIs INR 68,868 cr (37%) a
Slide 4: About the Bank
About the Bank Bandhan Bank is a commercial bank promoted by Mr. Ghosh, which focused on serving underbanked and underpenetrated markets in India. It was incorporated as a Microfinance player and subsequently it obtained a banking license. The bank offers regular banking services, microfinance, MSME
Slide 5: Bandhan Bank's Story in Charts
Bandhan Bank’s Story in Charts Exhibit 1: AUM to grow at CAGR of 31% over FY19-21E Exhibit 2: PAT to grow at CAGR of 28% over FY19-21E 800 90% Net Advances Advances Growth 35.0 32.2 350% 678 80% PAT PAT Growth 700 70% 30.0 300% 600 528 24.3 60% 25.0 250% 500 396 50% 19.5 400 20.0 200% INR (bn) 297 4
Slide 6: Bandhan Bank's Story in Charts
Bandhan Bank’s Story in Charts Exhibit 5: Asset quality well in control Exhibit 6: Banking Outlets Banking Outlets DSCs Branches 2.5% GNPA NNPA 9000 4000 4013 Due to 2.0% 3700 8000 2.0% IL&FS Exposure of 7000 Rs 385 Cr 1.4% 1.4% 6000 1.5% 1.2% 5000 1.0% 4000 3014 3014 3000 2764 0.5% 0.6% 0.6% 0.6% 0
Slide 7: What makes us bullish on Bandhan Bank ??
What makes us bullish on Bandhan Bank ?? Uniquely positioned : The bank enjoys opportunities of low cost deposits, fee income, high yielding microfinance segment. Superior cost efficiencies: Its distribution network is relatively low cost, which in particular is a result of its “hub and spoke” m
Slide 8: Valuation and Outlook (Standalone)
Valuation and Outlook (Standalone) OUTLOOK: Considering the strong track record of growth Particulars (Rs. in Cr.) 2019 A 2020 E 2021 E path, improving the mix of its non- micro lending business (except Gruh) and strong liability franchise we remain Net Interest Income 4496.1 5625.5 7226.7 fairly po
Slide 9: Bandhan Bank + Gruh Finance
Bandhan Bank + Gruh Finance On 7th Jan 2019, the Board of Directors of Bandhan Bank and Gruh Finance approved the merger of Gruh with Bandhan Bank, subject to regulatory and shareholder approvals Share exchange ratio: 0.568 : 1 (568 shares of Bandhan Bank for every 1,000 shares of GRUH) Regulatory a
Slide 10: Merger will provide Diversification
Merger will provide Diversification Loan Book break-up = Rs 62,112 Cr Key Metrics Gruh Finance Bandhan Bank Merged Entity Rs Cr FY19 FY19 FY19 P&L Metrics 28% Profit 447 1,952 2,399 Micro-Banking EPS (Rs.) 6.1 16.4 14.9 Non MFI Balance Sheet Matrix 10% 62% Housing Net Worth 1,891 11,202 13,093 Advan
Slide 11: Address Phone Email
AD D R ESS PH O N E EM AI L 1011 Solitaire Corporate 022 42254800 research@arihantcapital.com Park, Andheri Ghatkopar Link Road, Andheri East, Mumbai - 400093 YOUR FEEDBACK IS IMPORTANT TO US