Bandhan Bank Ltd. · NSE:BANDHANBNK
Bandhan Bank — Q3 FY2018-19 Earnings Presentation
33 slides from Bandhan Bank's earnings presentation, January 2019
Slide 1: Investor Presentation – Q3 FY 2018-19
Investor Presentation – Q3 FY 2018-19 January 2019
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 & Strengths
Key Highlights & Strengths Bank
Slide 4: Key Highlights
Key Highlights Bandhan Bank - Overview Snapshot of operations (Q2 FY 18-19) Loan portfolio (on book + off book) for Q3FY 18-19 grew 46.11% Y-o-Y Deposits grew by 36.95% Y-o-Y in Q3 FY 18-19; Net NPA at 0.7% Total Deposits ₹ 346.39 bn 307.0 bn Retail Deposit to Total Deposit at 84.8%; CASA grew
Slide 5: Geographical Distribution
Geographical Distribution 5
Slide 6: Geographical Distribution
Geographical Distribution Banking Outlets Focus on serving the rural & 5000 underbanked population Metro, 4000 3992 10% 3520 3000 Rural, Urban, 3014 36% 2000 2633 19% 1000 887 978 0 Dec' 17 Dec' 18 Semi-urban, Branches DSCs Banking Outlets 35% Multi channel distribution network with a mix of Signifi
Slide 7: Branch Mix
Branch Mix Present in 34 of the 36 States and Union Territories of India. Lakshadweep & Daman and Diu are the only ones that do not have a Bandhan Bank presence.
Slide 8: Merger Announcement Overview
Merger Announcement Overview 8
Slide 9: Transaction Overview
Transaction Overview On Jan 07, 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. Prior to merger After merger HDFC HDFC BFHL Public Public BFHL Public Ltd. Ltd. 82.3% 17.7% 57.9% 42.1% 61.0%
Slide 10: Diversification of Loan Book AUM
Diversification of Loan Book AUM Bandhan Gruh Merged Entity Retail Home Loans Non-Micro Banking Developer loans 28% 14% 5% By product (September 58% Micro 2018) 95% Banking 86% 14% Retail Home Loans Others Micro Banking INR 33,373cr INR 16,663cr INR 50,036cr >3 years 1 - 3 years >3 years 1% <1 year
Slide 11: Complementary Branch Network
Complementary Branch Network East India Bandhan: 613 branches Gruh: 4 branches Combined: 617 branches + Bandhan: 1,979 DSCs 1 West India Gruh: 99 branches Bandhan: 94 branches Branch network Bandhan Gruh Combined Combined: 193 branches East 613 4 617 + Central 135 49 184 Bandhan: 241 DSCs 1 North 73
Slide 12: Merged Entity: Footprint & Financial Profile
Merged Entity: Footprint & Financial Profile Half year ending Sep Bandhan + Bandhan Gruh* Total 30, 20181 Bandhan Gruh Gruh (INR crores) (proforma)2 AUM (on book + off 33,373 16,663 50,036 Branches 978 194 1,168 book) PAT (1H FY19) 969 220 1,190 Branch + Yields % 15.3% 10.9% 14.1% 3,992 194 4,186 ou
Slide 13: Synergies
Synergies Introduce Gruh home loans Access to low cost deposit through Bandhan network base for Gruh Access to Gruh’s Deepen micro-banking proprietary operating footprint in West India systems 13
Slide 14: Business Overview
Business Overview Bandhan Bank
Slide 15: Asset Overview
Asset Overview Advances* Growth (₹ in Billion) Number of Total Active Borrowers (in Million) 355.99 8.81 7.25 243.64 Dec' 17 Dec' 18 Dec' 17 Dec' 18 Composition of Advances (in %) Higher PSL Portfolio 4% 88% 87% 96% 12% 13% Dec' 17 Dec' 18 Priority sector advances (as a % of advances) – Q3 FY2018 No
Slide 16: Asset Overview
Asset Overview Micro Banking Asset* Growth (₹ in Billion) Product wise Advances – Non Micro (₹ in Billion) 309.18 215.05 1.69 1.61 4.49 4.51 14.34 11.29 Dec' 17 Dec' 18 1.22 1.42 Number of Active Micro Borrowers (in Mn) 6.42 16.06 14.23 8.67 7.14 12.29 10.48 12.05 7.25 Dec' 17 Sep' 18 Dec' 18 Dec' 1
Slide 17: Disbursement
Disbursement Product wise Disbursements – Non Micro (₹ in Total Disbursements - (₹ in Billion) Billion) 355.41 70 227.53 60 135.78 100.91 50 30.67 40 Q3 FY 18 Q3 FY 19 9M FY 18 9M FY 19 30 3.61 Micro Loan Disbursements (₹ in Billion) 15.9 324.76 14.21 10.27 20 0.91 1.25 7.42 10 8.56 3.26 213.32 6.2
Slide 18: Liabilities Profile
Liabilities Profile Deposits Growth (₹ in Billion) Number of Customers (in Million) Micro Banking General Banking 346.39 15.33 11.99 252.94 3.18 52.70 2.13 9.86 12.15 37.76 Dec' 17 Dec' 18 150.27 CASA (%) 131.16 41.4% 33.2% 114.22 69.17 14.85 29.20 Dec' 17 Dec' 18 Current Savings TD Retail TD Others
Slide 19: Liabilities Profile
Liabilities Profile Retail to total Deposits (%) Moving towards a more stable and cheaper source of funding 85.1% 84.8% Deposits 0% Borrowings 100% 23 Aug 2015 Dec' 17 Dec' 18 Borrowings Average SA Balance (₹ in 000’) 20% General Banking Micro Banking Deposits 80% March 2016 1.96 1.29 Borrowings 37.
Slide 20: Credit Rating
Credit Rating Rating of Bank’s Financial Securities Amount Instrument Rating Rating Agency (₹ in Billion) CARE AA-; Stable (Double A Minus; CARE Ratings Outlook: Credit watch with Unsecured Subordinated Non - developing implications) 1.60 Convertible Debenture* [ICRA]AA (Double A; Outlook: placed on
Slide 21: Financial Overview
Financial Overview Bandhan Bank
Slide 22: Financial Performance
Financial Performance Total income (₹ in Billion) PAT (₹ in Billion) 13.01* Net Interest Income Other Income Total Income 9.58 4.88 3.00 3.31* 39.13 Q3 FY 18 Q2 FY 19 Q3 FY 19 9M FY18 9M FY19 26.72 6.75 Operating expenses to Average Assets (%) 4.0% 4.1% 4.0% 3.9% 3.9% 5.03 13.08 13.58 32.38 8.9 2.3
Slide 23: Financial Performance
Financial Performance ROAA & ROAE* Spread % ROAA ROAE Yield Cost of funds (Excl Cap.) Spread 25.6% 22.5% 15.4% 15.3% 15.4% 15.7% 15.3% 19.3% 17.1% 8.6% 12.5% 9.0% 9.1% 8.8% 8.9% 6.8% 6.3% 6.3% 6.9% 6.4% 3.7% 4.3% 2.9% 4.1% 3.9% Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18
Slide 24: Financial Performance
Financial Performance Capital Adequacy Ratio NIM Tier I Tier II Total 10.5% 10.3% 10.3% 9.9% 32.6% 32.8% 24.9% 9.6% 1.1% 1.1% 1.4% 31.5% 31.7% 23.5% Q3 FY18 Q2 FY19 Q3 FY19 H1 FY18 H1 FY19 Dec' 17 Sep' 18 Dec' 18 Gross NPA and Net NPA Credit Cost 5.7 Gross NPA (%) Net NPA 2.4%* 2.6 1.7% 1.5 1.3% 1.6
Slide 25: Profit & Loss Statement (IN ₹ million)
Profit & Loss Statement (IN ₹ million) Particulars Q3 FY 19 Q3 FY 18 YoY% Q2 FY 19 Q0Q% Dec-18 Dec-17 YoY% Interest Income 16,496 11,782 40.01% 16,057 2.73% 48114 34517 39.39% Interest expenses 5,255 4,465 17.69% 5,282 -0.51% 15727 12829 22.59% Net Int. Income (NII) 11,241 7,317 53.63% 10,775 4.32%
Slide 26: Balance Sheet (IN ₹Million)
Balance Sheet (IN ₹Million) Particulars As at As at st st YoY% 31 Dec 2018 31 Dec 2017 Capital & Liabilities Capital 11,928 10951 8.92% Reserves & Surplus 93,460 43090 116.89% Shareholder Funds 1,05,388 54,041 95.01% Deposits 3,46,393 252940 36.95% Borrowings 2,600 13307 -80.46% Other liabilities an
Slide 27: Our Board & Management
Our Board & Management Bank
Slide 28: Management Team
Experienced and professional team… Chandra Shekhar Ghosh Mahendra Mohan Gupta MD & CEO Head, Legal Founder of BFSL, has 27 years of experience in the field of 34+ years experience in the legal, finance and banking industry microfinance and development Previously worked as DGM- Legal at ICICI B
Slide 29: Board of Directors
… backed by a strong independent Board Chandra Shekhar Ghosh Harun Rashid Khan MD & CEO Director Has significant experience in the field of microfinance Retired as Deputy Governor of Reserve Bank of India Awarded ‘Outstanding Leadership Award’ by Dhaka University Instrumental in formulation
Slide 30: Bandhan Group structure & shareholding
Bandhan Group structure & shareholding North East Bandhan Financial Financial Employees Caladium IFC IFC FIG SIDBI Others Inclusion Trust Inclusion Trust Welfare Trust 32.91% 7.82% 14.61% 16.70% 13.59% 2.85% 8.13% 3.39% 1.77% 0.95% 0.29% 4.58% Bandhan Financial Services Ltd (BFSL) 100.00% 10.01% Ban
Slide 31: Awards and accolades
Awards and accolades MFIN Microfinance Award 2018 Bandhan Bank received the MFIN Microfinance Award 2018 – In Pursuit of Excellence’ in the following two categories: 1. Risk and Resilience Framework 2. Microfinance Plus Activities Pride of Bengal Mr. Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank Ltd
Slide 32: Awards and accolades
Awards and accolades Aadhaar Excellence Awards 2018 Bandhan Bank bagged Aadhaar Excellence Awards in the following categories : • Best Performing Bank in terms of Aadhaar Generation and update using online client • Ranked 4th in Achievers awards for opening highest percentage of Aadhar Centre as per
Slide 33: Thank You
Thank You Bandhan Bank