Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q3 FY2024 Earnings Presentation
37 slides from Bandhan Bank's earnings presentation, Feb 9, 2024
Slide 1: Exchange filing cover letter
Ref. No.: BBL/555/2023-24 February 09, 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: 5
Slide 2: Press Release: Q3 FY24 business grows 17% YoY
PRESS RELEASE Bandhan Bank Q3 FY24 business grows 17% YoY; PAT grows 152% YoY to ₹ 733 crore Kolkata, February 09, 2024: The Board of Directors of Bandhan Bank Ltd., at a meeting held in Kolkata today, approved its Financial Results for the Quarter ended December 31, 2023. The accounts have been sub
Slide 3: Highlights for the Quarter ended Dec 31, 2023
Highlights for the Quarter ended Dec 31, 2023: Quarter Particulars (in ₹ bn) Q3 FY 24 Q2 FY 24 Q3 FY 23 Net Interest Income 25.3 24.4 20.8 Non-Interest Income 5.5 5.4 10.3 Total Income 30.7 29.8 31.1 Opex 14.2 14.0 11.9 Operating Profit 16.6 15.8 19.2 Provision (Other than Taxes) 6.8 6.4 15.4 PBT 9.
Slide 4: Investor Presentation Q3FY24
Investor Presentation Q3FY24 February’ 2024
Slide 5: 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 6: Key Highlights
Key Highlights
Slide 7: Key Highlights
Key Highlights • NII for the quarter grew at 21% YoY Total Deposits Total Loans and Advances1 • Retail loans (excl. housing) grew ~70% YoY, Commercial Banking division grew ~60% YoY • Loan portfolio (on book + off book + TLTRO + PTC) for Q3FY24 grew 7.7% QoQ and 18.6% YoY ₹1174.2bn ₹ 1159.4bn • CASA
Slide 8: EEB Collection Efficiency
EEB Collection Efficiency Top states Collection Efficiency for the month Collection Efficiency for the quarter States For Sep’23 For Dec’23 For Q2 FY24 For Q3 FY24 Excluding Arrears Excluding Arrears 112% 110% 99% 99% 114% 113% West Bengal 99% 99% 99% 99% 94% 94% 98% 98% 95% 94% Assam 99% 99% 99% 99
Slide 9: EEB DPD movement
EEB DPD movement 1-30 days 31-60 Days ₹ 9.6 bn; ₹ 6.1 bn; 1.8% ₹ 8.1 bn; ₹ 5.7 bn; 1.4% 1.1% 1.0% Rest of India 2.3% 1.5% 1.7% 1.3% 0.9% 0.8% 0.4% 0.4% 1.1% 1.0% 0.8% 0.6% Assam Sep'23 Dec'23 Sep'23 Dec'23 West Bengal 61-90 Days NPA ₹ 56.2 bn; ₹ 64.4 bn; 10.4% 11.1% ₹ 6.9 bn; Overall EEB 6.4% 8.0% 1
Slide 10: Stress Pool and NPA Analysis
Stress Pool and NPA Analysis All amount in ₹ Bn. EEB Stress Pool Coverage Analysis – Dec’23 EEB Stress Pool - ₹ 75 Bn. Coverage Amount Provision 53 64.4 CGFMU recovery 16 5.7 ECLGS Guarantee 4 5.3 Assam Relief Scheme xx Total 73 NPA SMA 2 SMA 1 Month wise Pan Bank Slippage Trend EEB Book - Vintage A
Slide 11: NPA movement
NPA movement All amount in ₹ Bn. Particulars Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Opening GNPA (A) 68.5 69.6 53.0 69.6 78.7 Fresh Slippages (B) 32.7 11.2 13.6 13.2 13.9 Reductions (C) : - Recoveries & Upgrades 6.2 4.7 2.8 4.1 4.1 - Write offs 25.3 - - - - NPA Sale to ARC (D) - 23.2 - - 7.2 ECLGS guara
Slide 12: Business & Financial Overview
Business & Financial Overview
Slide 13: Geographical Distribution
Geographical Distribution Focus on serving the rural & underbanked population Banking Outlets Banking Outlets as on 31st Dec 2023 522 11% 34% 18% 26 37% 6,219 6,245 5,723 1,621 1,647 Metro Urban Semi-Urban Rural 1,250 Diversifying presence… 4,473 4,598 4,598 Dec'23 46% 10% 17% 7% 10% 10% Sep'23 46%
Slide 14: Asset Book Mix
Asset Book Mix All amount in ₹ Bn. Share of Loan Book 18.6% Dec-23 7.7% CB 21.6% Retail 3.9% 1076.3 1159.4 Housing 24.5% 977.9 250.0 SBAL* 16.6% 229.9 156.7 44.7 EEB Group 33.4% 26.3 39.0 284.4 267.3 267.5 Sep-23 CB 21.4% 527.6 539.9 580.3 Retail 3.6% Housing 24.9% SBAL* 16.9% Dec'22 Sep'23 Dec'23 E
Slide 15: Emerging Entrepreneurs Business
Emerging Entrepreneurs Business Emerging Entrepreneurs Asset Growth (₹ in Bn) Number of Active Borrowers (Mn) 10.0% 7.5% 580.2 13.8 13.6 539.9 527.6 13.0 Dec'22 Sep'23 Dec'23 192.6 168.5 182.1 EEB Loan Disbursement (₹ in Bn) 174.8 169.9 152.2 47.4 50.4 49.5 387.6 359.1 357.8 122.5 124.4 102.7 Dec'22
Slide 16: Housing Finance
Housing Finance Housing Asset Borrowers Bifurcation – Dec’23 Housing HousingAsset Asset Bifurcation (₹ in Bn) 1.1 Segment Segmentwise wise(in (in%) %) 6.4%* 40.2 267.3 267.5 284.4 58.7 1.0% 0.8% 0.9% 2.4 2.7 2.2 7.4% 5.7% 10.9% 31.1 19.8 15.3 12.9% 13.7% 13.9% 34.5 36.6 39.6 Salaried Self Employed P
Slide 17: Commercial Banking (CB) & Retail Assets
Commercial Banking (CB) & Retail Assets Product wise CB Assets (₹ in Bn ) CB segment wise Growth 59.5% Q-o-Q YoY 8.7% 229.9 250.0 22.1% 78.9% SME 156.7 117.5 143.5 NBFC -5.2% 39.2% 80.2 112.4 106.5 76.5 Dec'22 Sep'23 Dec'23 NBFC SME Product wise Retail Assets (₹ in Bn ) CB & Retail Disbursements(₹ i
Slide 18: Liabilities Profile
Liabilities Profile Deposits Growth (₹ in Bn) Retail to Total Deposits (%) 14.8% 4.8% 69% 74% 71% 1,120.8 1,174.2 Dec'22 Sep'23 Dec'23 1,022.8 CASA (%) 291.0 337.5 312.3 38.5% 36.4% 36.1% 397.8 412.6 338.4 Dec'22 Sep'23 Dec'23 324.7 369.1 357.5 Average SA Balance Per Customer (₹ in 000’) 47.4 62.9 6
Slide 19: Financial Performance
Financial Performance Net Interest Income (₹ in Bn) Operating Profit (₹ in Bn) 21.4% 3.4% 19.2 15.8 16.6 Q3FY23 Q2FY24 Q3FY24 Operating profit of Q3FY23 includes one-off income of ₹ 4.1 bn on account of ARC sale. Adjusted YoY growth is 10% PAT (₹ in Bn) 24.4 25.3 20.8 7.2 7.3 2.9 Q3FY23 Q2FY24 Q3FY2
Slide 20: Break up of Other Income
Break up of Other Income All amount in ₹ Mn. Details of other Income Q3FY23 Q2FY24 Q3FY24 YoY QoQ Processing Charges 2,123 2,445 2,504 17.9% 2.4% Third Party Income 905 749 606 -33.0% -19.2% Collection fees from ARC 120 372 233 94.4% -37.2% Profit on sale of Investment 410 356 98 -76.1% -72.5% Card
Slide 21: Financial Performance (1/3)
Financial Performance (1/3) Spread (Annualized) 12.0% 13.3% 13.4% 5.8% 6.2% 6.5% 6.8% 6.6% 6.8% Q3FY23 Q2FY24 Q3FY24 Yield Cost of funds (Excl Cap.) Spread Capital Adequacy Ratio (CRAR) NIM (Annualized) 19.1% 19.2% 17.9% 1.0% 1.0% 1.0% 19.8% 20.6% 20.6% 6.5% 7.2% 7.2% 18.1% 18.2% 16.9% Q3FY23 Q2FY24
Slide 22: Financial Performance (2/3)
Financial Performance (2/3) ROAA & ROAE (Annualized) Operating expenses to Average Assets (Annualized) 14% 14% 3.4% 3.7% 3.7% Q3FY23 Q2FY24 Q3FY24 Cost to Income Ratio 6% 46.9% 46.1% 1.9% 1.9% 38.3% 0.8% Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 ROAA ROAE 19
Slide 23: Financial Performance (3/3)
Financial Performance (3/3) Segmental GNPA movement (₹ in Bn) Credit Cost 69.6 78.7 81.4 6.4% 0.3 0.7 1.0 8.3 2.5% 2.5% 10.7 11.4 Q3FY23 Q2FY24 Q3FY24 9.7 4.6 11.1 Credit Cost Gross NPA and Net NPA PCR 75.4% 70.0% 70.0% 64.4 7.2% 7.3% 51.3 56.2 7.0% 2.3% 2.2% 1.9% Dec'22 Sep'23 Dec'23 Dec'22 Sep'23
Slide 24: Profit & Loss Statement (In ₹ Bn.)
Profit & Loss Statement (In ₹ Bn.) Particulars Q3 FY 24 Q2 FY 24 QoQ% Q3 FY 23 YoY% 9MFY 24 9MFY 23 YoY% Interest Income 46.7 44.9 3.9% 38.1 22.5% 136.8 116.4 17.6% Interest expenses 21.4 20.5 4.4% 17.3 23.9% 62.2 48.5 28.3% Net Int. Income (NII) 25.3 24.4 3.4% 20.8 21.4% 74.6 67.9 9.9% Non Interest
Slide 25: Balance Sheet (IN ₹Bn)
Balance Sheet (IN ₹Bn) As at As at Particulars % Change 31st Dec 2023 31st Mar 2023 Capital & Liabilities Capital 16.1 16.1 0.0% Reserves & Surplus 199.2 179.7 10.8% Shareholder Funds 215.3 195.8 9.9% Deposits 1,174.2 1,080.7 8.7% Borrowings 140.2 247.1 -43.3% Other liabilities and provisions 39.5 3
Slide 26: Digital Offering and Indices
Digital Offering and Indices
Slide 27: 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 28: Traction evident on key digital indices
Traction evident on key digital indices Key upcoming initiatives Creation of digital liability stack 95 % 82 % 92 % of retail transactions MF application Saving Accounts are digital sourced digitally opened digitally# Credit card digital journey Payment of CBDT, GST & customs tax through internet ba
Slide 29: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Bn) RR1 3.76 Security Receipts w.r.t portfolio sale to ARC CRISIL RR2 2.05 [ICRA]AA (Negative) ICRA Non-Convertible Debenture # 12.95** CRISIL AA-/Stable CRISIL Term Loans From Bank [ICRA]AA (Negative) I
Slide 30: Our Board & Management
Our Board & Management
Slide 31: Experienced and professional team… (Core Management 1/2)
Experienced and professional team… Core Management Team (1/2) 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 32: Experienced and professional team… (Core Management 2/2)
Experienced and professional team… Core Management Team (2/2) Subhash Balkrishna Samant Abhijit Ghosh Head – Housing Finance Chief Financial Officer (Interim) • 27 years of experience in banking and financial industry • 27+ years experience in accounting, taxation, and audit • Previously worked as Z
Slide 33: … backed by a strong independent Board
… backed by a strong independent Board Board of Directors Dr. Anup Kumar Sinha Chandra Shekhar Ghosh Ratan Kumar Kesh Non-executive (Independent) Chairman Managing Director & CEO Executive Director - Economist with Ph.D from University of Southern -Has more than 30 years of experience in microfinanc
Slide 34: Awards and accolades
Awards and accolades
Slide 35: Awards and accolades
Awards and accolades Bandhan Bank wins IBS intelligence Global Fintech Award Bandhan Bank received the IBS intelligence Global Fintech Award for “Best Digital Channel/Platform Implementation: Best Project Implementation “for Corporate Internet Banking implementation on December 14, 2022. The IBSi Gl
Slide 36: 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 37: Thank You
Thank You investor.relations@bandhanbank.com 34