Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q3 FY25 Earnings Presentation
45 slides from Bandhan Bank's earnings presentation, Jan 31, 2025
Slide 1: Exchange cover letter on press release and earnings presentation
Ref. No.: BBL/482/2024-25 January 31, 2025 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 - 400 001 Mumbai - 400 051 BSE Scrip Code
Slide 2: Bandhan Bank's 9M FY25 PAT up 12% YoY
PRESS RELEASE Bandhan Bank’s 9M FY25 PAT up 12% YoY, at Rs 2427 crore • Deposits grew 20% YoY reaching Rs.1.41 lakh crore as of December 2024 • Gross advances grew 14% YoY to Rs.1.32 lakh crore as of December 2024 • Secured Advances grew 34% YoY and now constitute nearly half of the total loan book
Slide 3: Press release: quarter results, asset quality, deposits, advances
Net Interest Margin (NIM) for the quarter was 6.9% compared to 7.2% in Q3 FY24 Operating Profit was Rs.2,021 crore in Q3 FY25 compared to Rs.1,655 crore in Q3 FY24, up 22% YoY The provisions (other than tax) & contingencies charged to the Profit and Loss for Q3 FY25 were at Rs.1376 crore compared to
Slide 4: Key Highlights of Quarterly Performance
Key Highlights of Quarterly Performance Rs in crore Particulars Q3 FY25 Q3 FY24 YoY Growth Advances 1,31,927 1,15,874 13.9% Deposits 1,41,002 1,17,422 20.1% CASA 44,735 42,413 5.5% Net Interest Income 2,830 2,525 12.1% Net Total Income 3,926 3,071 27.9% Gross NPA 6,179 8,136 -24.1% Net NPA 1,637 2,4
Slide 5: Investor Presentation Q3FY25
Investor Presentation Q3FY25 Jan, 2025 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 All ₹ in Bn ▪ Gross Advances grew 13.9% YoY (up 1.0% QoQ) mainly driven by secured loans (up 34% YoY) Total Deposits Total Loans and Advances1 ▪ Growth in the non-EEB book, representing ~58% of advances, was strong at 30% YoY (6.4% QoQ) contributed by Retail book (95% YoY), Commercial
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 13.9% 26.1% CB 24.7% 1.0% 21.6% 6.7% 1,306.5 1,320.2 Retail 5.7% 3.9% 1,159.4 322.2 345.0 24.7% 250.0 Housing 24.2% 24.9% 75.1 87.6 44.9 15.2% 288.5 316.3 326.4 SBAL 16.2% 16.2% 27.3% EEB Group 29.2% 576.0 592.9 561.2 33.4% Dec'24 Sep'24 De
Slide 11: Emerging Entrepreneurs Business
Emerging Entrepreneurs Business Emerging Entrepreneurs Asset Growth (₹ in Bn) Number of Active Borrowers (Mn) -2.6% -5.3% 13.8 13.6 13.6 576.0 592.9 561.2 Dec'23 Sep'24 Dec'24 188.3 211.6 201.3 EEB Loan Disbursement (₹ in Bn) 174.3 49.9 124.5 122.2 387.7 381.3 359.9 38.8 35.0 124.4 85.7 87.3 Dec'23
Slide 12: Housing Finance
Housing Finance Housing Asset Housing HousingAsset Asset Bifurcation (₹ in Bn) Borrowers Bifurcation – Dec’24 Segment Segmentwise wise(in (in%) %) 13.1% 2.8% 3.2% 40.6% 56.6% 0.9% 0.6% 0.6% 326.4 316.3 10.8% 6.6% 6.1% 1.9 288.5 1.9 16.2% 16.7% 19.8 13.9% 2.5 20.8 31.1 51.4 54.6 Salaried Self Employe
Slide 13: Commercial Banking (CB)
Commercial Banking (CB) Product wise CB Assets (₹ in Bn) NBFC: 93% of exposure are A- & Above category, as per external rating 38.0% A- Others AAA A 4% 7% 6% 7.1% 6% AA+ 27% 345.0 A+ 322.3 13% 14.7 11.6 49.8 250.0 AA 51.7 AA- 13% 14.9 13.1 24% * Incl DA 4.8 54.6 106.4 89.6 7.9 MMG: 76% of exposure a
Slide 14: Retail Assets
Retail Assets Product wise Retail Assets (₹ in Bn) Retail Asset Segment wise (in %) 95.2% 6.4% 5.1% 6.1% 18.8% 17.0% 15.8% 19.4% 19.9% 19.1% 16.7 % 22.6% 21.6% 27.3% 87.6 5.3 35.6% 37.4% 75.1 28.1% 3.8 13.9 Dec'23 Sep'24 Dec'24 12.7 Vehicle Personal Gold TD-OD Others 16.7 44.9 14.9 Retail Disburseme
Slide 15: Geographical Distribution of Loans & Advances
Geographical Distribution of Loans & Advances Share of Loans & Advances by States Share of Loans & Advances by Region 40% 41% 41% 7% 7% 7% 20% 8% 8% 8% 21% 22% 8% 8% 7% 12% 13% 14% 12% 25% 23% 23% 14% 14% 9% Dec'23 Sep'24 Dec'24 9% 9% West Bengal Maharashtra Bihar Gujarat MP Others 17% 16% 16% Categ
Slide 16: Liabilities Profile
Liabilities Profile Deposits (₹ in Bn) CASA + Retail TD to Total Deposits (%) 20.1 % -1.1 % 71% 68% 69% 1,425.1 1,410.0 Dec'23 Sep'24 Dec'24 1174.2 459.1 442.0 CASA (%) 337.5 36.1% 33.2% 31.7% 493.2 520.6 412.6 Dec'23 Sep'24 Dec'24 357.5 408.5 386.2 Average SA Balance (₹ in 000’) 66.6 64.3 61.2 1.9
Slide 17: Geographical Distribution of Deposit
Geographical Distribution of Deposit Share of Deposits by States Share of Deposits by Region 37% 36% 35% 3% 4% 4% 4% 4% 4% 12% 14% 14% 5% 5% 6% 9% 11% 11% 10% 8% 8% 12% 13% 13% 42% 40% 40% 10% 11% 11% 4% 4% 4% Dec'23 Sep'24 Dec'24 West Bengal Maharashtra Uttar Pradesh NCT of Delhi Odisha Others 52%
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 Dec’24 11% 52 Banking Outlets 34% (0.8% YoY) 18% 6,245 6,297 6,297 1,703 1,703 37% 1,647 Metro Urban Semi-Urban Rural Share of Banking Outlets by Region 4,598 4
Slide 19: Asset Quality
Asset Quality 15
Slide 20: Segmental NPA and Credit Cost
Segmental NPA and Credit Cost Segmental GNPA movement (₹ in Bn) Credit Cost 4.1% 81.4 1.0 2.5% 2.5% 2.6% 11.4 2.0% 4.7 61.0 61.8 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 1.6 2.4 Adj. for the impact of technical write-offs done during the quarter, credit cost for Q3FY25 and 9MFY25 would have 11.0 11.9 been
Slide 21: NPA movement
NPA movement All amount in ₹ Bn. Particulars Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Opening GNPA (A) 78.7 81.4 47.8 53.0 61.0 Fresh Slippages (B) 13.9 10.2 8.9 11.1 16.2 Reductions (C) : - Recoveries & Upgrades 4.1 5.2 3.7 3.0 2.8 - Technical Write offs - 38.5 - 0.1 12.7 NPA Sale to ARC (D) 7.2 - - - -
Slide 22: EEB Collection Efficiency
EEB Collection Efficiency Top states Collection Efficiency for the Month Collection Efficiency for the Quarter States For Sep’24 For Dec’24 For Q2FY25 For Q3FY25 Excluding Arrears Excluding Arrears 110.3% 108.1% 98.1% 97.4% West Bengal 99.0% 98.8% 99.0% 98.8% 94.5% 109.5% 93.0% 106.7% 97.8% 97.5% 94
Slide 23: EEB DPD movement
EEB DPD movement SMA 0 SMA 1 ₹ 8.0 bn; ₹ 8.8 bn; ₹ 8.1 bn; ₹ 6.6 bn; 1.4% 1.5 % 1.4% ₹ 5.7 bn; ₹ 5.6 bn; 1.2% 1.0% 0.9 % 1.7% 2.0% 1.9% 1.6% Rest of India 1.3% 1.2% 0.8% 0.7% 0.6% 0.6% 0.4% 0.5% 1.0% 0.8% 0.9% 0.7% 0.6% 0.7% Assam Dec'23 Sep'24 Dec'24 Dec'23 Sep'24 Dec'24 West Bengal NPA ₹ 64.3 bn;
Slide 24: EEB - Stress Pool and Vintage Analysis
EEB - Stress Pool and Vintage Analysis All amount in ₹ Bn. EEB Book - Vintage Analysis * % of Disbursement EEB Stress Pool - ₹ 54 Bn. Qtr Disbursement SMA1* SMA2* NPA* Q3FY23 152 0.1% 0.1% 2.6% 41.0 Q4FY23 211 0.2% 0.3% 3.9% Q1FY24 80 0.3% 0.3% 2.7% Q2FY24 169 0.5% 0.5% 3.0% 6.6 Q3FY24 174 0.7% 0.7%
Slide 25: Strong focus on borrower's affordability – EEB Business
Strong focus on borrower’s affordability – EEB Business Increase in only Bandhan Portfolio % Lender Analysis by AUM Static Portfolio % for 64% Bandhan +1 61% 61% Decrease in % of portfolio 1+ Lenders QoQ 19% 19% 19% 10% 10% 9% 5% 5% 4% 2.6% 2.5% 2.0% 2.4% 2.2% 1.6% Only Bandhan Bandhan + 1 Other Ban
Slide 26: Strict Controls, Sharp Underwriting to improve asset quality
Strict Controls, Sharp Underwriting to improve asset quality Embrace best practices Series of controls effected from Q1 FY24. Strict Association Maker Checker Monthly review Norms Mechanism •Analytics driven •Appropriate score •Assessment of Income past credit behavior cut offs to ensure and creditw
Slide 27: Financials
Financials 23
Slide 28: Financial Performance (1/2)
Financial Performance (1/2) Net Interest Income (₹ in Bn) Operating Profit (₹ in Bn) 21.2% 17.8% 58.2 48.0 16.6 18.6 20.2 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 12.1% PAT (₹ in Bn) 11.6% 87.8 -4.0% 74.6 21.7 24.3 25.3 29.5 28.3 7.3 9.4 4.3 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3FY24 Q2FY25 Q3FY25 9MFY24 9
Slide 29: Financial Performance (2/2)
Financial Performance (2/2) Spread (Annualized) 13.4% 13.7% 13.3% 13.3% 13.6% 6.6% 6.8% 7.0% 6.7% 7.1% 6.2% 6.6% 6.7% 7.0% 6.6% Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Yield Cost of funds (Excl Cap.) Spread Capital Adequacy Ratio (CRAR) NIM (Annualized) 17.9 % 14.3% 14.4% 1.0% 0.7% 0.7% 19.8 % 7.2% 7.4%
Slide 30: Break up of Non-Interest Income
Break up of Non-Interest Income All amount in ₹ Mn. Details of other Income Q3FY24 Q2FY25 Q3FY25 QoQ YoY 9MFY24 9MFY25 YoY Processing Fees 2,504 1,976 1,928 -2.4% -23.0% 6,144 5,891 -4.1% Third Party Income 606 832 946 13.7% 56.1% 1,551 2,263 46.0% Release of prov on redemption of SR (ARC) 769 601 9
Slide 31: Financial Performance
Financial Performance ROA & ROE (Annualized) Operating expenses to Average Assets (Annualized) ROA ROE 16% 3.8% 4.2% 3.9% 3.7% 3.6% 14% 14% 14% Q3FY24 Q2FY25 Q3FY24 9MFY24 9MFY25 Cost to Income Ratio 7% 46.1% 47.6% 48.5% 46.2% 47.1% 1.9% 2.1% 1.9% 1.8% 0.9% Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3FY24
Slide 32: Profit & Loss Statement (In ₹ Bn)
Profit & Loss Statement (In ₹ Bn) Particulars Q3FY24 Q2FY25 Q3FY25 QoQ YoY 9MFY24 9MFY25 YoY Interest Income 46.7 55.0 54.8 -0.4% 17.4% 136.8 165.1 20.7% Interest expenses 21.4 25.5 26.5 3.8% 23.7% 62.2 77.3 24.3% Net Int. Income (NII) 25.3 29.5 28.3 -4.0% 12.1% 74.6 87.8 17.8% Non Interest Income 5
Slide 33: Balance Sheet (In ₹ Bn)
Balance Sheet (In ₹ Bn) Capital & Liabilities 31st Mar’24 31st Dec’24 % Change Capital 16.1 16.1 0.0% Employees stock options outstanding 0.4 2.3 418.6% Reserves & Surplus 199.5 224.2 12.4% Shareholder Funds 216.1 242.6 12.3% Deposits 1,352.0 1,410.0 4.3% Borrowings 163.7 134.0 -18.1% Other liabilit
Slide 34: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Bn) RR1+ 0.28 Security Receipts w.r.t portfolio sale to ARC RR1 CRISIL 1.56 RR2 1.82 [ICRA]AA- (Stable) ICRA Non-Convertible Debenture # 12.95** CRISIL AA-/Stable CRISIL CRISIL A1+ CRISIL Certificate of
Slide 35: Digital Offering and Indices
Digital Offering and Indices 31
Slide 36: Traction evident on key digital indices
Traction evident on key digital indices 98% 90% 83% 56% of retail transactions Saving Accounts MF application RD volume are digital opened digitally # sourced digitally booked digitally 29% 62% 68% 71% growth in digital Growth in Activation growth in digital growth in UPI registration In Corporate I
Slide 37: Bandhan Bank Neo+ Digital Fixed Deposit with vKYC
Bandhan Bank Neo+ Digital Fixed Deposit with vKYC True Digital Experience 100% Paperless & Contactless Flexible Tenures 7 days to 10-year tenure Applicable for New to Bank Customers No prior relationship? No problem Minimal Documents Required Only PAN & Aadhaar to get started Tailored Investment Opt
Slide 38: Our Board & Management
Our Board & Management 34
Slide 39: Strong Independent Board
Strong Independent Board Board of Directors Dr. Anup Kumar Sinha Rajinder Kumar Babbar Partha Pratim Sengupta Executive Director & Chief Business Officer Non-executive (Independent) Chairman Managing Director & Chief Executive Officer - Has more than three decades of experience in banking sector - E
Slide 40: Core Management Team (1/3)
Experienced and professional team… Core Management Team (1/3) Partha Pratim Sengupta Managing Director & Chief Executive Officer • 40+ years of experience in banking industry • Previously served as MD & CEO of Indian Overseas Bank Ratan Kumar Kesh Rajinder Kumar Babbar Executive Director & Chief Ope
Slide 41: Core Management Team (2/3)
Experienced and professional team… Core Management Team (2/3) Amitava Goswami Sundeep Bhan Chief Compliance Officer Chief Risk Officer (Interim) • 30+ years experience in banking Industry • 29+ years of experience in banking industry. • Previously worked in leadership roles in Retail Banking and Ban
Slide 42: Core Management Team (3/3)
Experienced and professional team… Core Management Team (3/3) Satyajit Ghosh Arpita Sen Head – Group Loans Head - FIG, Healthcare & Education • Over 28 years of expertise in the microfinance industry • 25+ years of experience in financial services including Institutional Finance • Previously worked
Slide 43: Awards and accolades
Awards and accolades 39
Slide 44: 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 45: Thank You
Thank You For information contact: Vikash Mundhra, Head – Investor Relations investor.relations@bandhanbank.com 41