Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q4 FY2019-20 Earnings Presentation
35 slides from Bandhan Bank's earnings presentation, May 2020
Slide 1: Investor Presentation Q4 FY 2019-20
Investor Presentation Q4 FY 2019-20 May 2020
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 FY 2019-20 Loan portfolio (on book + off book) for Q4FY 19-20 grew 60.5% Y-o-Y (excl. GRUH 20%) Total Deposits ₹ 570.82 bn Deposits grew by 32.0% Y-o-Y in Q4 FY 19-20 (excl. GRUH 29.0%) Net NPA is at 0.58% Total Loans and advances ₹
Slide 5: Building granular deposit franchise & update on COVID-19, Moratorium and earlier crisis
Building granular deposit franchise & update on COVID-19, Moratorium and earlier crisis
Slide 6: Deposits from regions outside its core geographies have witnessed steady growth
Deposits from regions outside its core geographies have witnessed steady growth Pan India acceptance: Steady increase in share of customer Building a strong granular deposit franchise deposits beyond East / North-East 600.00 77% 78% 80% 72% 5% 7% 71% 9% 9% 70% 500.00 10% 12% 60% 47% 12% 400.00 13% C
Slide 7: Steady growth in deposit with retail focus
Steady growth in deposit with retail focus Deposit Movement in ₹ bn 580.30 570.82 30th April 567.24 2020 31st March 549.08 2020 05th March 432.32 2020* 31st Dec 2019 31st March 2019 Steady growth in deposits despite challenging environment faced by private sector banks post Yes Bank moratorium annou
Slide 8: Moratorium Update
Moratorium Update 95% of DSCs have been opened and are connected with 100% Moratorium in borrowers to get the ground level feedback 1 Micro value for Apr’20 79% of borrowers have an average deposit balance of ~ ₹3,070, which is equivalent to 4+ weekly instalments As per borrower feedback, coll
Slide 9: Borrower profile is largely from industries resilient to COVID-19
Borrower profile is largely from industries which are resilient to the COVID-19 environment In ₹ MN Non Micro Total Business Category Micro Banking % of Total Advances Banking Advances Agriculture & Allied Activities 206,120 909 207,029 28.8% Affordable Housing 191 185,002 185,193 25.8% Food Process
Slide 10: Core geographies have witnessed minimal impact of COVID-19
Core geographies have witnessed minimal impact of COVID-19 Covid-19 Geographic distribution Jammu and MIN MAX Kashmir Hi ma chal Pra desh Punjab Chandigarh Uttarakhand Share of Haryana Arunachal Share of Micro Delhi Pradesh Region confirmed Sikkim banking advances Uttar Pradesh Covid-19 cases Rajast
Slide 11: Deep penetration in Tier 3-6 locations gives competitive advantage
Deep penetration in Tier 3 - 6 locations gives the bank a competitive advantage in the current environment Share of Banking Units (DSC) Share of Portfolio 21% 22% 79% 78% Rural & Semi-urban Urban & Metro Rural & Semi-urban Urban & Metro Rural and semi-urban locations which contribute major share of
Slide 12: Micro Finance portfolio resilience during times of crisis 1/3
Micro Finance portfolio has historically shown higher resilience vis–a–vis industry during times of crisis 1/3 Demonetization GST (Nov’16) (Jul’17) Pan India Pan India 90 + DPD as on Mar'17 90+ DPD as on Dec'17 9.9% 5.5% 8.4% 4.5% 1.5% 0.4% Bandhan Rest of Total Bandhan Rest of Total Bank Industry I
Slide 13: Micro Finance portfolio resilience during times of crisis 2/3
Micro Finance portfolio has historically shown higher resilience vis–a–vis industry during times of crisis 2/3 Farm Loan Waiver in Uttar Pradesh Cyclone Fani in Odisha (Aug’17) (May’19) 90+ DPD as on Mar'18 90+ DPD as on Sep'19 14.3% 13.4% 6.5% 6.1% 4.6% 1.0% Bandhan Rest of Total Bandhan Rest of To
Slide 14: Micro Finance portfolio resilience during times of crisis 3/3
Micro Finance portfolio has historically shown higher resilience vis–a–vis industry during times of crisis 3/3 Disruption due to agitation in Assam (Nov 2019) 90+ DPD as on Feb’20 3.1% 10.1% 6.2% Bandhan Bank Rest of Industry Total Industry* Despite having the highest market share in the state with
Slide 15: Business & Financial Overview
Business & Financial Overview 15
Slide 16: Geographical Distribution
Geographical Distribution Banking Outlets Focus on serving the rural & underbanked population 4,559 4,288 Banking Outlets as on 31st March 2020* 4,000 1,018 1,009 10% Mtero 35% 19% 986 Urban 36% Semi-Urban Rural *Basis original classification at the time of opening 3,279 3,541 3,014 Diversifying pre
Slide 17: Asset Overview
Asset Overview Advances Growth (₹ in Billion) Composition of Advances (in %) 14.0% 447.76 718.46 25.2% 60.5% 10.5% 181.24 75.33 61.61 86.0% 64.3% 461.89 386.15 March'19 March'20 March '19 March'20 Micro Non Micro Gruh Micro Non-Micro Gruh * March-20 merged Advances including GRUH; * Portfolio divers
Slide 18: Asset Book Mix
Asset Book Mix Total Advances (₹ in Billion) 718.46 March’19 2% 60.5% 5% 1% 28.11 2% Micro 4% 24.76 10.60 Retail 7.31 NBFC-MFI 185.78 NBFC-Others 447.76 86% SME 18.41 Mortgages 19.87 4.50 8.21 10.62 March’20 461.89 386.15 Micro 26% Retail 4% NBFC-MFI 64% 2% NBFC-Others 3% SME 1% March'19 March'20 Mo
Slide 19: Micro Banking Assets
Micro Banking Assets Micro Banking Asset Growth (₹ in Billion) Number of Active Micro Borrowers (Mn) 20% 17.39% 462 11.14 386 9.49 March'19 March'20 March'19 March'20 Micro Loan Disbursement (₹ in Billion) 193.24 199.48 146.81 145.62 123.2 132.51 108.47 119.87 94.72 96.41 Dec-17 Mar-18 Jun-18 Sep-18
Slide 20: Non Micro Assets
Non Micro Assets Non Micro Banking Asset growth (₹ in Billion ) Product wise Advances – Non Micro (₹ in Billion) 10.62 256.57 316% 4.50 185.78 61.61 19.87 March 19' March 20' 18.41 10.6 # Mar-20 merged non-micro advances including GRUH; 24.76 8.21 28.11 Higher PSL Portfolio 7.31 March' 19 March'20 9
Slide 21: Liabilities Profile
Liabilities Profile Deposits Growth (₹ in Billion) Retail to Total Deposits (%) 77.4% 78.4% 32.0% 570.82 432.32 March 19' March'20 360.54 256.14 CASA (%) 40.8% 36.8% 34.3% 176.18 210.28 March 19' Dec' 19 March'20 March'19 March'20 Average SA Balance Per Customer (₹ in 000’) CASA TD General Banking M
Slide 22: Bandhan GRUH Loans
Bandhan GRUH Loans Customers Portfolio Ouststanding 0.65% 3.97% 9.40% 44.10% 55.24% 86.32% Salaried Self Employed Professionals Hosuing LAP Construction Average FOIR* Type of Property AVERAGE LOAN 39% 0.46% Flats TO VALUE 38% Average LTV 37% 38% 29.59% Raw 36% Houses/Bun 36% 36% 69.95% galows 35% 69
Slide 23: Financial Performance
Financial Performance Total income (₹ in Billion) Operating Profit (₹ in Billion) Net Interest Income Other Income Total Income 54.46 37.48 15.21 11.54 1 Q4 FY 19 Q4 FY 20* FY19 FY20* 78.73 PAT (₹ in Billion)# 55.58 15.49 30.24 10.63 19.52 21.8 63.24 16.46 44.95 5.00 3.88 6.51 5.17 12.58 16.80 Q4 F
Slide 24: Financial Performance
Financial Performance Capital Adequacy Ratio NIM (Annualized) Tier I Tier II Total 10.4% 7.9% 8.1% 8.1% 29.20% 27.43% 1.32% 2.24% 27.88% 25.19% March 19' March 20' Q3FY20 Q4 FY20 * FY19 FY20* Spread (Annualized) Yield Cost of funds (Excl Cap.) Spread 15.4% 14.0% 13.8% 14.0% 6.8% 9.1% 7.2% 6.7% 7.0%
Slide 25: Financial Performance
Financial Performance ROAA & ROAE (Annualized) ROAA ROAE 20.0% 21.1% 19.0% 13.7% 3.5% 4.2% 3.6% 2.4% Q3 FY20 Q4 FY20* FY19 FY20* Cost to Income Ratio Operating expenses to Average Assets (Annualized) 3.6% 33.4% 32.6% 30.8% 2.9% 2.9% 2.8% 30.3% Q3 FY20 Q4 FY20* FY19 FY20* Q3 FY20 Q4 FY20* FY19 FY20*
Slide 26: Financial Performance
Financial Performance Segmental GNPA movement - (₹ in Billion) Gross NPA and Net NPA Gross NPA (%) Net NPA 2.04% 1.48% 11.82 0.58% 0.58% 9.93 March 19' March 20'* 8.20 5.93 5.35 Credit Cost (Annualized) 5.40 Credit Cost - Standard Credit Cost - NPA Total oost 3.01 2.48 0.07 5.08% 2.70 2.88 2.09 1.67
Slide 27: Profit & Loss Statement (IN ₹ Billion)
Profit & Loss Statement (IN ₹ Billion) Particulars Q4 FY 20 Q4 FY 19 YoY% Q3 FY 20 QoQ% FY 20 FY 19 YoY% Merged Standalone Merged Merged Standalone Interest Income 28.46 18.33 55.26% 27.18 4.71% 108.86 66.43 63.87% Interest expenses 11.66 5.75 102.71% 11.77 -0.93% 45.62 21.48 112.38% Net Int. Income
Slide 28: Balance Sheet (IN ₹Billion)
Balance Sheet (IN ₹Billion) As at As at 31st Mar 2020 31st March 2019 % Change Particulars (Merged) (Standalone) Capital & Liabilities Capital 16.10 11.93 34.95% Reserves & Surplus 135.85 100.09 35.73% Shareholder Funds 151.95 112.02 35.65% Deposits 570.82 432.32 32.04% Borrowings 163.79 5.21 3043.7
Slide 29: 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 30: Our Board & Management
Our Board & Management 30
Slide 31: Management Team
Experienced and professional team… Chandra Shekhar Ghosh Sudhin Bhagwandas Choksey MD & CEO Executive Director (Designate) 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
Slide 32: Board of Directors
… backed by a strong independent Board Dr. Anup Kumar Sinha Chandra Shekhar Ghosh 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 Awarded ‘Outsta
Slide 33: Awards and accolades
Awards and accolades Businessworld Magna Awards 2019 Bandhan Bank won two awards in the small size bank category at the glittering ceremony of Magna Awards 2019 organised by Businessworld magazine in Mumbai. 1. Best Bank 2. Fastest Growing Bank 'Banker of the Year' award was conferred upon Mr. Chand
Slide 34: Awards and accolades
Awards and accolades Banker of the Year by Business Standard Mr. Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer was declared as the Business Standard ‘Banker of the Year’ for 2018-19 on November 14, 2019. He received this award for the all-round performance of Bandhan Bank. Tim
Slide 35: Thank You
Thank You Investor.relations@bandhanbank.com 35