Bandhan Bank (BANDHANBNK) Q4 17/18 earnings summary

Executive summary

• FY 2017-18 deposits rose 46% YoY to ₹33,869 crore, advances rose 37% to ₹32,339 crore and total business increased 42% to ₹66,208 crore.

• PAT increased 21.01% to ₹1,345.56 crore; customer count reached 1.30 crore and the network expanded to 936 branches and 2,764 doorstep service centres.

• The first post-IPO year combined rapid asset and liability growth with continued focus on financial inclusion, broader products and digital delivery.

Financial highlights

• Total income rose 27.51% to ₹5,508.48 crore; net interest income increased 26.16% to ₹3,032.24 crore YoY.

• Operating profit grew 35.54% to ₹2,430.11 crore; profit before tax was ₹2,055.90 crore and PAT was ₹1,345.56 crore.

• Total deposits rose 45.80% to ₹33,869 crore; CASA deposits reached ₹11,623.92 crore, or 34.32% of deposits.

• Total advances grew 37% to ₹32,339 crore; total disbursements increased 19% YoY to ₹38,966 crore.

• Adjusted for the ₹3,662.4 crore fresh IPO issue, paid-up share capital increased by ₹97.66 crore and share premium by ₹3,564.74 crore.

Outlook and guidance

• Stated priorities: sustain microlending while expanding reach, reinforce deposits, increase non-interest income, strengthen digital banking and widen distribution.

• FY 2018-19 plans included growing SME lending through new hubs in Tamil Nadu, Uttar Pradesh and Bihar, and expanding affordable-housing centres in existing markets.

• Digital roadmap included expanding AadhaarPay, UPI and Bharat QR, scaling tab-banking, introducing AI chatbots and evaluating customer trends for tailored offerings.

• Treasury plans included entering commercial paper and corporate bond investments and exploring forex derivatives, subject to Board-approved risk parameters.