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Significant Reduction in Provisions helped Bandhan Bank to post Strong Q4 FY22 Results, PAT at 1,902 Crores In Q4 FY22 | Q4 FY22 Result &Conference Call Highlights

Significant Reduction in Provisions helped Bandhan Bank to post Strong Q4 FY22 Results, PAT at 1,902 Crores In Q4 FY22 | Q4 FY22 Result Analysis & Conference Call Highlights

Published on 16 May 2022 .Views 38 .Comments 0
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Financial Highlights:

Reached the milestone of around 1 lakh crore advances in Q4 FY22.

Advances stood at 99,338 crores grew by 14% YoY.

Deposits stood at 96,331 crores grew by 24% YoY.

CASA deposits grew by 42% and Retail deposits grew by 77%.

Five-year growth strategy plan from 2021 to 2025 is shifted to 2026 due to covid.

Decided to open 530 new branches in FY23 in which 805 of the branches will be opened across the country other than the East.

Housing loan portfolio is expanding more in North and South parts of the country.

Secured loans are at 39% and remaining are unsecured loans.

By 2025 target is to get secured loans at 46% and 54% of unsecured loans, by 2026 50% secured and 50% unsecured loans target can be reached.

329 new branches are opened across the country in FY22.

Investing in IT system including CBS and also developing the digital banking.

Working on digital banking to disburse loans, repayment of loans and also graduation of group loans into individual loans.

Profitability Numbers:

NII grew by 42.6% in Q4 FY22.

Operating profit grew by 53.5% which is the highest growth in bank’s lifetime.

Net profit is at 1902 crores in Q4 FY22.

NIM grew by 190 bps Q-o-Q in Q4 FY22.

Total Collection Efficiency stood at 99% I Q4 FY22.

Collection Efficiency in EB increased to 99% in Q4 FY22 from 97% in Q3 FY22 excluding NPA and areas.

Collection Efficiency in West Bengal is 99%, Assam is 98% and total India is 99%.

89% of the NPA customers are paying in March 2022.

59% of the Restructured customers are paying in March 2022.

Improvement in Collection Efficiency helped in lowering the NPA levels.

Gross NPA stood at 6.46% in Q4 FY22 compared to 4.35% in Q3 FY22.

Net NPA stood at 1.66% in Q4 FY22.

DPD of micro credit reduced to half of the level of previous quarter.

EB Portfolio Highlights:

Emerging Entrepreneur business consists of three verticals which are micro credit, small business and agricultural loans, micro home loans and two-wheeler loans.

22.8 lakh new customers are added in FY22.

Disbursements are at 22,968 crores in Q4 FY22 grew by 50% from Q4 FY20.

Bank migrated 24.32% of the group loans into individual loans as on March 2022.

Housing Loan Portfolio:

Housing loan portfolio stood at 23,726 crores grew by 11% YoY in Q4 FY22.

CAGR of housing loan portfolio in last two years stood at 9.29%.

Total Disbursements are at 4,340 crores in Q4 FY22 grew by 105% YoY and 95% Q-o-Q.

Housing loan portfolio consists of 61% salary based and 39% self-employed in Q4 FY22.

Average ticket size increased from previous year to 1 lakh in FY22.

Commercial Banking Portfolio:

Commercial Banking portfolio grew by 60% YoY and 40% Q-o-Q IN Q4 FY22 to 11,720 crores.

Retail Credit other than housing loans stood at 1,645 crores grew by 39% YoY.

Loan Portfolio Mix:

In micro finance group loans share came down to 47% in FY22 from 60% in FY21.

Housing loans share increased to 24% in FY22 from 23% in FY21.

Commercial Banking including individual loans increased to 28% in FY22 from 16% in FY21.

Retail loans share increased to 1.6% in FY22 from 1.3% in FY21.

By 2025 trying to reach group loan share of 26% from 47% in FY22 by graduating the group loans into individual loans.

DPD Highlights:

1-30 day DPD reduced to 3% in Q4 FY22 from 5.3% in Q3 FY22.

31-60 day DPD reduced to 1.6% in Q4 FY22 from 2% in Q3 FY22.

61-90 day DPD reduced to 1.9% in Q4 FY22 from 2.9% in Q3 FY22.

In EB, NPA reduced to 7.8% in Q4 FY22 from 13.7% in Q3 FY22.

Stress Pool:

5000 crores of the stress pool are recovered in Q4 FY22.

Stress pool reduced to 11,900 crores in Q4 FY22 compared to 17,000 crores in Q3 FY22.

Provision coverage increased to 58.5% in Q4 FY22 compared to 54% in Q3 FY22.

Targeted to recover 3000 crores recovery in upcoming two quarters in FY23.



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Use of this information is at the users own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.

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Please find attached for detailed analysis.

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