Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q1 FY2020-21 Earnings Presentation
32 slides from Bandhan Bank's earnings presentation, July 2020
Slide 1: Investor Presentation Q1 FY2020-21
Investor Presentation Q1 FY2020-21 July 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 Q1 FY 2020-21 Loan portfolio (on book + off book) for Q1 FY 20-21 grew 17.7% Y-o-Y Total Deposits ₹ 606.10 bn Deposits grew by 35.3% Y-o-Y in Q1 FY 20-21 Net NPA is at 0.48% Total Loans and ₹ 743.31 bn1 advances Retail Deposit to
Slide 5: Business Update
Business Update 5
Slide 6: Q1 tepid growth seasonality induced; higher growth than last FYs
Although Q1’s tepid growth in each FY is seasonality induced ; this year witnessed a higher growth compared to the last FYs Quarterly growth comparison of Micro banking advances 26.8% 28.6% 24.9% 15.2% 9.3% 6.7% 3.6% 2.8% 1.8% 1.2% 1.4% 0.1% 2.3% -9.7% In spite of Covid-19, growth in Q1 FY 21 is hig
Slide 7: Disbursement for June approaching pre-covid levels
Disbursement for the month of June is fast approaching pre-covid levels In ₹ Million Micro-Banking MSME 1,366 40,454 28,593 646 June'19 June'20 June'19 June'20 A calibrated expansion of MB asset book Only term loans are considered for with average ticket size of INR 46,305 disbursement Mortgage Othe
Slide 8: Additional loan made available to existing Micro Banking customers
Additional loan made available to Existing Micro Banking customers to support and grow their business 68% 5% % of existing borrowers to whom % of borrowers who are paying additional loan is disbursed Additional Loan is disbursed to only 5% of the existing borrowers whereas collection is coming from
Slide 9: Micro Banking collections improved in June'20
Micro Banking collections witnessed improvement in the month of June’20 Daily collection efficiency for June’20 70% 65% 65% 67% 56% 59% 58% 68% 52% 63% 66% 64% 50% 51% 58% 59% 56% 49% 52% 30% 37% 20% 15% 27% 18% Weekly collection efficiency for June’20 65% 67% 58% 51% 23% Week 1 Week 2 Week 3 Week 4
Slide 10: Collection Update
Collection Update 68%collection 68% collection in value in value by endby 70% as on& 70% as on 3rd end &June’20 June’20 1 Micro 3rd July’ 20 as against 0% in April July’ 20 as against 0% in April 85%Collection 85% Collection in value in value for June’20 for June’20 as against as 87%against in 87% i
Slide 11: Focus on retail deposits and new customer acquisition
Focus on retail deposits and new customer acquisition has helped growth in total deposit balance in Quarter ended June 2020 Total Deposits 232 in ₹ Billion 339 224 307 Mar'17 Jun'17 Mar'18 Jun'18 606 437 432 571 Mar'19 Jun'19 Mar'20 Jun'20 11
Slide 12: New CASA account sourcing crossed pre-covid levels
New CASA account sourcing has crossed the pre- covid levels in the month of June’ 20 CASA Sourcing* in the month of June’20 84.1 78.2 Jun'19 Jun'20 No. of accounts (in 000) *Through Branch Banking (excluding micro-banking customers) 12
Slide 13: Business & Financial Overview
Business & Financial Overview 13
Slide 14: Asset Book Mix
Asset Book Mix Total Advances (₹ in Billion) 743.31 718.46 June’19 31.50 28.11 631.64 Micro 27.21 7.58 10.60 6.62 24.76 30% Retail 16.99 7.31 22.63 5.49 NBFC-MFI 6.65 195.61 62% 185.78 NBFC-Others 3% SME 188.22 1% 1% Mortgages 3% June’20 474.78 461.89 391.66 Micro 26% Retail 61% NBFC-MFI 7% NBFC-Oth
Slide 15: Micro Banking Assets
Micro Banking Assets Micro Banking Asset Growth* (₹ in Billion) Number of Active Micro Borrowers (Mn) 21.2% 13.82% 475 462 11.20 11.14 392 9.84 June'19 June'20 March'20 June'19 June'20 March'20 *Micro Banking book for June 20 includes Individual loan portfolio amounting to ₹ 22 bn Micro Loan Disburs
Slide 16: Non Micro Assets
Non Micro Assets Non Micro Banking Asset growth (₹ in Billion ) Product wise Advances – Non Micro (₹ in Billion) 268.52 256.57 239.98 188.22 195.61 185.78 June 19' June 20' March'20 7.58 10.6 5.49 27.21 24.76 22.63 16.99 31.50 28.11 Higher PSL Portfolio 6.65 6.62 7.31 June' 19 June '20# March'20 10%
Slide 17: Liabilities Profile
Liabilities Profile Deposits Growth (₹ in Billion) Retail to Total Deposits (%) 78% 78% 78% 606.10 570.82 35.3% 447.96 381.37 June 19' June'20 March'20 360.54 295.39 CASA (%) 37.1% 36.8% 34.1% 194.81 177.27 128.34 24.23 29.92 33.01 June 19' June'20 March'20 June '19 June '20 March'20 CA SA TD Averag
Slide 18: Housing Loans
Housing Loans Customers Portfolio Outstanding 0.65% 3.96% 10.28% 44.24% 55.11% 85.77% Salaried Self Employed Professionals Housing LAP Construction Average FOIR* Type of Property AVERAGE LOAN 40% 8.71% Flats TO VALUE 30% Average LTV 20% 36% 36% 36% 29.49% Raw 10% Houses/Bun 61.80% galows 0% Others 6
Slide 19: Financial Performance
Financial Performance Total income (₹ in Billion) Operating Profit (₹ in Billion) Net Interest Income Other Income Total Income 15.84 15.21 16.81% 21.8 13.56 21.98 19.06 Q1 FY 20 Q1 FY 21 Q4 FY20 15.32% PAT (₹ in Billion)# 3.87 5.00 3.31 8.04 -31.59% 5.50 5.17 18.11 16.80 15.75 Q1 FY 20 Q1 FY 21 Q4
Slide 20: Financial Performance
Financial Performance Capital Adequacy Ratio (CRAR) NIM (Annualized) Tier I Tier II Total 8.6% 26.58% 26.45% 27.43% 2.93% 3.23% 2.24% 8.2% 8.1% 23.65% 23.22% 25.19% June 19' June 20' Mar'20 Q1 FY 20 Q1 FY 21 Q4 FY20 CRAR for June’ 20 after considering Q1 FY21 Profits is 27.29% Spread (Annualized) Yi
Slide 21: Financial Performance
Financial Performance ROAA & ROAE (Annualized)# ROAA ROAE 24.3% 14.1% 13.7% 4.2% 2.3% 2.4% Q1 FY20 Q1 FY21# Q4 FY20 Cost to Income Ratio Operating expenses to Average Assets (Annualized) 28.9% 30.3% 27.9% 2.70% 2.90% 2.50% Q1 FY20 Q1 FY21 Q4 FY20 Q1 FY20 Q1 FY21 Q4 FY20 # ROAA & ROAE for June 20 low
Slide 22: Financial Performance
Financial Performance Segmental GNPA movement - (₹ in Billion) Gross NPA and Net NPA Gross NPA (%) Net NPA 1.70% 10.2 10.07 1.43% 1.48% 9.93 0.59% 0.48% 0.58% 5.96 5.32 5.35 June 19' June 20' Mar'20 Others* Credit Cost (Annualized) Gruh Micro Credit Cost - NPA Credit Cost - Standard 1.77 2.68 2.48 4
Slide 23: Geographical Distribution
Geographical Distribution Banking Outlets Focus on serving the rural & underbanked population 4,559 4,559 4,208 Banking Outlets as on 30th June 2020* 1,018 1,018 10% Mtero 999 35% 19% Urban 36% Semi-Urban Rural *Basis original classification at the time of opening 3,541 3,541 3,209 Diversifying pres
Slide 24: Profit & Loss Statement (IN ₹ Bn)
Profit & Loss Statement (IN ₹ Bn) Particulars Q1 FY 21 Q4 FY 20 QoQ% Q1 FY 20 YoY% FY 20 Merged Merged Merged Merged Merged Merged Interest Income 30.18 28.46 6.04% 26.31 14.71% 108.86 Interest expenses 12.07 11.66 3.52% 10.56 14.30% 45.62 Net Int. Income (NII) 18.11 16.80 7.80% 15.75 14.98% 63.24 N
Slide 25: Balance Sheet (IN ₹Billion)
Balance Sheet (IN ₹Billion) As at As at % Change Particulars 30th June 2020 31st Mar 2020 Merged Merged Capital & Liabilities Capital 16.10 16.10 0.00% Reserves & Surplus 141.36 135.85 4.06% Shareholder Funds 157.46 151.95 3.63% Deposits 606.10 570.82 6.18% Borrowings 165.45 163.79 1.01% Other liabi
Slide 26: 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 27: Our Board & Management
Our Board & Management 27
Slide 28: 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 29: 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 A
Slide 30: 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 31: 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 32: Thank You
Thank You Investor.relations@bandhanbank.com 32