Bandhan Bank (BANDHANBNK) Q4 15/16 earnings summary

Executive summary

• Banking operations launched on Aug. 23, 2015; in 222 days, total income reached ₹1,731.25 crore and net profit ₹275.25 crore.

• Year-end scale: 84 lakh customers, 656 branches, 2,022 Doorstep Service Centres and 228 ATMs across 29 states and Union Territories.

• Deposits reached ₹12,088.75 crore and advances ₹12,437.55 crore; micro-banking remained the core business, with a growing general-banking platform.

Financial highlights

• FY 2015-16 total income ₹1,731.25 crore; net interest income ₹526.89 crore; net profit ₹275.25 crore after ₹191.56 crore in provisions.

• Interest earned ₹1,581.25 crore and other income ₹150.00 crore; operating expenses ₹615.92 crore in the audited segment disclosure.

• Deposits ₹12,088.75 crore, including CASA of ₹2,605.60 crore; CASA was 21.55% of deposits.

• Gross loan portfolio ₹15,593 crore including on- and off-book advances; on-book advances were ₹12,437.55 crore at year-end.

Outlook and guidance

• FY 2016-17 SME priorities include loans below ₹10 lakh, new Small Enterprise Loans, more asset centres, stronger early-warning and rating tools, and trade and supply-chain finance capabilities.

• Retail lending, particularly housing and vehicle loans, was expected to grow faster, supported by the customer base, product offerings and cross-selling.

• The branch network was expected to continue expanding, with distribution planned across rural, semi-urban, urban and metropolitan markets.

• Indian economic growth was projected at 7%-7.75% in 2016-17; a normal monsoon could support growth, though its impact remained uncertain until August.