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Elevated slippages in microfinance book
View Risks →Bandhan Bank Limited — Q1 FY24
Bandhan Bank reported a stable Q1 FY24 with net profit of INR 721 crore, down 18.7% YoY from INR 887 crore, impacted by seasonal weakness in microfinance and higher provisions.
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Bandhan Bank reported a stable Q1 FY24 with net profit of INR 721 crore, down 18.7% YoY from INR 887 crore, impacted by seasonal weakness in microfinance and higher provisions. Advances grew 6.7% YoY but declined sequentially due to a INR 2,151 crore large FD-backed loan repayment and a ~10% QoQ drop in microfinance. Retail and commercial banking grew strongly at 87% and 78% YoY respectively. NIM held at 7.3%, and credit cost improved to 2.4% from 2.9% QoQ. Management guided for 20%+ loan growth in FY24, credit cost around 2%, and NIM of 7-7.5%. Key risks include elevated slippages in the microfinance book and potential disruption from core banking system migration in Q2.
बंधन बैंक ने पहली तिमाही में 721 करोड़ रुपये का मुनाफा कमाया, जो पिछले साल के 887 करोड़ से 18.7% कम है। इसकी वजह छोटे कर्ज (माइक्रोफाइनेंस) में कमजोरी और ज्यादा प्रावधान (खराब कर्ज के लिए रखा गया पैसा) है। कर्ज देने में 6.7% बढ़ोतरी हुई, लेकिन पिछली तिमाही से यह घटा क्योंकि एक बड़ा एफडी-समर्थित कर्ज चुक गया और छोटे कर्ज में 10% गिरावट आई। रिटेल और कमर्शियल बैंकिंग में 87% और 78% की जोरदार बढ़ोतरी हुई। ब्याज आय का अंतर (NIM) 7.3% पर स्थिर रहा और क्रेडिट कॉस्ट (खराब कर्ज का खर्च) 2.4% पर आ गया। कंपनी को इस साल 20% से ज्यादा कर्ज बढ़ने, क्रेडिट कॉस्ट 2% और NIM 7-7.5% रहने की उम्मीद है। खतरा छोटे कर्ज में बढ़ते फिसलन (खराब कर्ज) और अगली तिमाही में कोर बैंकिंग सिस्टम बदलने से है।
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Read Transcript →Quarter Snapshot
Collection Efficiency (ex-NPA)
98%
+2pp YoY
Improved from 96% in Q1 FY23, indicating better asset quality.
Retail Loan Growth (ex-housing)
87% YoY
+87% YoY
Strong growth in personal, gold, two-wheeler, and auto loans.
Commercial Banking Growth
78% YoY
+78% YoY
SME and FIG verticals drove robust expansion.
Gross NPA
6.76%
-49bps YoY
Improved from 7.25% in Q1 FY23, partly due to ECLGS reclassification.
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Guidance and risk preview
Advances expected to grow over 20% for the full year, with microfinance growing 17%.
Q1 slippages of INR 920 crore from the EEB book were higher than expected, though management cites seasonality.
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