Bandhan Bank (BANDHANBNK) Q4 21/22 earnings summary

Executive summary

• FY22 growth in deposits, advances and net revenue was offset by sharply higher provisioning; PAT fell to ₹125.79 crore, while Q4 delivered the strongest quarterly performance to date.

• Recovery strengthened in H2 as collection efficiency reached 99% in Q4 and loan disbursements were ₹31,685 crore, above pre-COVID levels.

• Vision 2025 priorities remain portfolio and geographic diversification, digital transformation, and employee capability building.

Financial highlights

• Net revenue rose 20.36% YoY to ₹11,536.84 crore; net interest income grew 15.22% to ₹8,714.02 crore and other income rose 39.61% to ₹2,822.82 crore.

• PAT was ₹125.79 crore, down 94.3% YoY, after provisions and contingencies of ₹7,887.61 crore versus ₹4,563.27 crore; basic and diluted EPS were ₹0.78.

• Deposits increased 23.55% to ₹96,330.62 crore; CASA rose 18.48% to ₹40,079.18 crore. Net advances grew 15.15% to ₹93,974.93 crore.

• Total business reached ₹1,95,669 crore, with gross advances of ₹99,338 crore and deposits of ₹96,331 crore, versus ₹1,65,015 crore in FY21.

• Operating expenses rose to ₹3,523.44 crore; cost-to-income ratio increased to 30.54% from 29.39%, reflecting infrastructure and staffing costs.

Outlook and guidance

• FY23 plans include 551 new banking outlets, with most planned outside the East and North East; rural and semi-urban markets remain core focus areas.

• Strategic priorities include accelerating disbursements, sustaining collection efficiency, improving asset quality, and expanding MSME, retail and housing books.

• Technology priorities include a modern core banking platform, data analytics and digital channels; the first phase of architecture implementation is slated for Q1 FY24.

• Management cited confidence in further improving performance in FY23, supported by recovery and a more stable operating environment.