Bandhan Bank (BANDHANBNK) Q4 18/19 earnings summary

Executive summary

• FY19 total business rose 32.9% to ₹88,008 crore; PAT increased 45.0% to ₹1,951.5 crore.

• Deposits reached ₹43,231.6 crore and advances ₹44,776.1 crore; customer count grew 26.9% to 1.65 crore.

• Growth was supported by retail deposits and micro banking, with CASA at 40.75% and capital adequacy at 29.20%.

Financial highlights

• Total income increased 39.91% to ₹7,707.1 crore; total net revenue, defined as NII plus other income, rose 48.70% to ₹5,559.2 crore.

• NII grew 48.28% to ₹4,496.1 crore; other income increased 50.53% to ₹1,063.1 crore.

• PAT was ₹1,951.5 crore, up 45.02% YoY; basic EPS rose to ₹16.36 from ₹12.26 and diluted EPS to ₹16.34 from ₹12.26.

• Operating expenses rose to ₹1,811.0 crore from ₹1,308.3 crore, mainly reflecting branch expansion and higher staffing costs.

• Provisions and contingencies totaled ₹1,796.7 crore versus ₹1,084.6 crore; NPA provisions included ₹277.5 crore of bad debts written off.

Outlook and guidance

• Priorities include maintaining asset quality, growing deposits and CASA, controlling costs, and expanding micro banking, MSME and affordable housing.

• MSME and affordable housing are identified as key growth areas over the next three years; retail liability growth will target mass-affluent, affluent, trader, salaried and senior-citizen customers.

• Kisan Loan/KCC was launched in select Madhya Pradesh branches; wider rollout to other states was planned for FY20.

• Growth plans include prudent geographic expansion and stronger product offerings; future affordable housing demand is supported by PMAY and RERA, while the merger remains subject to final approvals.