Bandhan Bank Management Guidance Tracker

Advances expected to grow over 20% for the full year, with microfinance growing 17%.

Management expects overall advances to grow nearly 20% year-on-year, driven by festive demand and strong disbursements in H2.

Medium-term guidance for ROA and ROE, with detailed three-year plan to be shared after February strategy meet.

Management expects total advances to grow 17-20% over the next 2-3 years, with EEB growing 14-15%.

Bank aims for liability-first approach with deposits growing faster than assets to improve CD ratio.

Management expects overall loan book growth of 18-20% for FY25, with secured book growing faster than EEB.

Deposit growth will continue to outpace advances growth, with focus on retail deposits.

Overall advances growth target of 18% ± 1%, with EEB growing at 10%-12% and secured book growing faster.

Management aims to increase secured advances share from 49% to over 55% by FY27, with secured book growing 3x faster than EEB.

Management indicated Q4 EEB disbursements will be moderated versus prior year, with focus on renewals for good-quality borrowers.

Targeting 15-17% year-over-year advances growth, with secured mix exceeding 55% by FY27.

Aiming for return on assets of 1.8-1.9% over the next 2-3 years, driven by better asset quality and operating leverage.

EV book expected to grow 5-8% for the full year, with H2 recovery compensating for H1 decline.

Total advances growth target of around 10% for FY26, driven by non-EV segments growing at 26-27%.

EEB portfolio is expected to see gradual growth from Q3 onwards as operating environment shows signs of recovery.

Management guided for 15-17% CAGR in advances, with deposit growth expected to be higher than loan growth.

Management expects the microfinance portfolio to grow sequentially, with degrowth phase behind, supported by improving disbursements and collections.

Management reiterated guidance to achieve ROA of 1.6-1.8% (give or take 10bps) by exit of FY27, driven by margin improvement, lower credit costs, and higher fee income.

Credit cost guided at approximately 2%, with a possible variance of 20 basis points.

Net interest margin expected to remain in the 7% to 7.5% range.

The bank expects credit cost to remain in the range of 1.8% to 2.2% for the full year, supported by lower slippages and higher recoveries in H2.

Management guided for operating expenses to assets ratio of 3.5% for FY24, with balance sheet growth in H2 absorbing costs.

Management guided NIM to stay around 7%-7.5% in the near term, with a strategic review in March.

CFO guided for total portfolio credit cost between 1.8% and 2% in FY25, down from 3.4% in FY24.

Net interest margin is expected to remain in the range of 7-7.5% for FY25.

Credit cost for FY25 is expected to be in the range of 1.8-2%, despite Q1 coming in lower at 1.6%.

Management expects full-year credit cost to remain within 1.8%-2% of advances, with Q3 potentially elevated but Q4 showing improvement.

Net interest margin expected to remain in the 7%-7.5% range, with some moderation in coming quarters due to product mix shift.

CFO guided for overall credit cost to stabilize around 2% in the near future and decline to 1.5-1.6% by FY27 as secured mix improves.

CEO stated NIM will continue to moderate as the bank shifts to secured assets, but ROA target remains near 2% through volume growth and cost control.

Expect credit costs to improve from current elevated levels to 1.5-1.6% on a full-year basis over the next 2-3 years.

Management reiterated target of 2.5% credit cost for full year, with sequential improvement expected each quarter.

Management expects NIM compression in Q2 but stabilization in H2 due to lower slippages and deposit repricing benefits.

Management expects EEB credit cost to settle at 2.5-3% by FY27 exit, with overall bank credit cost at 1.5-1.6%.

NIM is expected to bottom at 5.8% in Q2 and improve from Q4 as term deposit repricing benefits flow through.

Management reiterated medium-term credit cost guidance of 1.6-1.7% overall and 2.5-3% for the EB segment by end of FY27.

CFO expects NIM to improve from 5.9% due to cost of funds declining 35-50 bps over next 2-3 quarters, partly offset by repo rate cut impact of ~11 bps.

Expect further NIM expansion of 10-20bps from current 6.2% level, driven by continued reduction in cost of funds as term deposits reprice.

Credit cost expected to improve from current 2% to 1.6-1.7% by Q4 FY27, aided by sustained collection efficiency and lower slippages.

Bank plans to reach approximately 1,600 branches by the end of the financial year.

The bank aims to increase the share of secured assets to 50% of total advances by fiscal year 2026, up from 44% currently.

Management expects secured portfolio share to increase from current 44.5% to nearly 50% by FY26.

Secured loan mix is expected to increase further by 2-3 percentage points over the next 6-7 quarters.

Management expects the pending CGFMU audit to conclude in Q1 FY25, with a positive outcome anticipated.

Operating expenses to average assets ratio expected to be at similar levels as FY24, around 3.7%-3.8%.

Operating expenses to average assets ratio expected to rise by 10-20 basis points from current levels over the next two years due to investments.

Priority sector lending certificate cost expected to halve in FY27 compared to FY26, with near-neutralization by FY28, driven by process improvements in EEB and direct agri loans.