Bandhan Bank Limited
Bandhan Bank, one of India’s youngest universal banks, is deeply committed to inclusive banking. Its remarkable growth is fueled by the trust of millions of stakeholders. Guided by the principle of ‘Aapka Bhala, Sabki Bhalai,’ the bank is dedicated to serving customers while also making a positive impact on people’s lives.
Bank Outlet
- Metro- 10%
- Urban- 18%
- Semi Urban- 37%
- Rural- 35%
- Total Outlet- 6262 (Latest Data 2/4/24)
- Total ATM- 438 (Latest Data 2/4/24)
Diversified Product Suite
- Groups Loan
- Small Business and Agri Loans
- Retail Assets
- Commercial Banking
- Third Party Products
- Retail Liabilities
- Digital Banking
- Banking Unit Business
Shareholding Pattern
- PUBLIC GROUP
- PROMOTER GROUP
Financial Summary
| Particulars | March 2023 | March 2022 | March 2021 |
| Revenue | 15,905 | 13,872 | 12,524 |
| Interest | 6,645 | 5,157 | 4,961 |
| Expenses | 8,693 | 11,298 | 6,534 |
| Financing Profit | 567 | -2,584 | 1,029 |
| Financing Margin % | 4% | -19% | 8% |
| Profit after tax | 2,195 | 126 | 2,205 |
| EPS in Rs | 13.62 | 0.78 | 13.69 |
Synopsis of Financials
- Overall advances grew by 18.6% year-on-year and 7.7% quarter-on-quarter
- Retail loan book grew by 70% year-on-year and 15% quarter-on-quarter
- Commercial banking vertical saw growth of 60% year-on-year and 9% quarter-on-quarter
- Housing finance book grew by more than 6%
- Total deposits reached INR 17,000 crores, growing by 15% year-on-year
Final Outlook
- The bank’s advances have accelerated 11 per cent quarter-on-quarter (QoQ) and 18 per cent YoY, meeting management guidance.
- Collection efficiency in the EEB book remains strong at 99 per cent.
- In comparison to the same quarter previous year, Bandhan Bank had a 17.8% increase in loans and advances for the March quarter. Year-over-year, total deposits increased by 25.1%. After deducting the sale of its ₹720 crore non-performing asset portfolio to an asset reconstruction company (ARC), the loan growth is computed. ₹2,151 crore in short-term loans against fixed deposits are also included in this figure.
- Most recently, Bandhan Bank has been downgraded to “underperform” by brokerage firm Jefferies from its earlier recommendation of “buy” after its founder & CEO Chandra Shekhar Ghosh resigned with effect from July 9 this year.
- In my assessment, it is recommend that investors should refrain from purchasing shares of the company. Relative to its competitors, the company’s net profit appears to be comparatively lower. Therefore, from an investment perspective, it may be prudent to explore alternative opportunities with higher potential returns.
