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.
neutral
medium
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
83%Questions answered1Evaded / deflected12Questions audited
Answered
High priority
Timeframe for ECLGS NPLs to leave the book via guarantee recovery.
Asked by Mahrukh Adajania, Nuvama
Provided a specific timeframe (3-6 months) for recovery.
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Question
Over what time frame do these ECLGS NPLs move out of the book, as in get resolved?
Sunil Samdani, CFO
Hopefully, in another 3 months or max 3-6 months, we should be able to recover the entire ECLGS claim.
Partial answer
Medium priority
Expected quarterly accretion to SME pool from now on.
Asked by Mahrukh Adajania, Nuvama
Gave a percentage (2%) but not an absolute rupee amount as asked.
no absolute number givengave percentage range instead of absolute
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Question
On an average, how much do you see would accrete to the SME pool every quarter from now on?
Sunil Samdani, CFO
Normally with 98% collection efficiency, that accretion should not be more than 2%... We expect the slippages number to reduce starting second quarter onwards.
Answered
High priority
Expected recovery through income statement from ARC sale in FY24.
Asked by Mahrukh Adajania, Nuvama
Provided a specific Q1 number and indicated it as a minimum for the year.
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Question
What kind of recovery through the income statement could we expect from ARC sale, say, in FY24?
Sunil Samdani, CFO
Both put together, it's about INR 270 odd crore in Q1, and as I said, Q1 is historically the weakest quarter, so that's the minimum we should look at.
Partial answer
Medium priority
Interest reversals during the quarter and margin outlook.
Asked by Nitin Aggarwal, Motilal Oswal
Did not provide the reversal number during the call, deferred to later.
promised to provide number later but did not give it in the call
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Question
If you can share a data point on the interest reversals that we had during the quarter, and how do you see therefore the margin?
Sunil Samdani, CFO
ECLGS, we had reversed the interest long back... For the other businesses, that reversal number, I'll just get that number and I'll tell you.
Answered
High priority
Total provisions including contingent and EEB.
Asked by Jai Mundhra, ICICI Securities
Provided a specific total provision number.
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Question
What is the quantum of total provision? We have given 4,300 crore provision for EEB. What would be the total provision, including all, you know, contingent, et cetera?
Sunil Samdani, CFO
The total provision as on June end stands at INR 57.5 billion.
Answered
High priority
PCR on non-MFI businesses and breakup.
Asked by Jai Mundhra, ICICI Securities
Provided specific PCR percentages for each segment.
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Question
What I'm trying to calculate is the PCR on the non-MFI businesses also... Is that the math roughly right?
Sunil Samdani, CFO
On the SME loans, we are covered around 58% in terms of PCR. The retail is about 45%, and the housing is about 40%.
Answered
High priority
Expected credit loss on the 2% slipping into SMA.
Asked by Saurabh Kumar, JP Morgan
Provided a specific credit cost estimate (2.5%) for the EB portfolio.
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Question
If your collection efficiency is 98%, 2% is slipping forward. I just want to know, typically, what is the loss rate on this or the NPA rate on this 2%?
Sunil Samdani, CFO
Then on the incremental side, it should be around 2.5%. On the EB portfolio.
Evasive
Medium priority
Reason for adding 20 bps variance to credit cost guidance.
Asked by Prakhar Agarwal, Elara Capital
Did not explain why the variance was added; deflected by saying it's a buffer.
denied confirming the variancegave vague reason
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Question
What makes you add this 20 basis points? Because last quarter... we said the credit cost will be around 2%.
Sunil Samdani, CFO
No, no, I'm not confirming that, right? We would want to keep that something in our hand for future, which is unknown. Our endeavor is to keep it within 2%.
Answered
High priority
Whether INR 920 crore slippages from EE book include one-offs.
Asked by M. B. Mahesh, Kotak Securities
Clearly stated no one-offs.
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Question
This INR 920 crore of slippages from the EE book, that has no one-off, right?
Sunil Samdani, CFO
No, that has no one-off. It's not.
Answered
High priority
NIM sustainability and cost of deposit trajectory.
Asked by Abhishek Murarka, HSBC
Reaffirmed NIM guidance range without hedging.
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Question
Incrementally, how do you see NIM sustaining at this level? ... Do you think there should be NIM pressure going forward?
Sunil Samdani, CFO
Clearly, we've given a range of 7%-7.5%, and we absolutely not see any reason why should we change that range.
Answered
Medium priority
Average cost of term deposits and marginal TD rate.
Asked by Manish Shukla, Axis Capital
Provided a specific number for average cost of TDs.
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Question
What will be your average cost of term deposits on the book today?
Sunil Samdani, CFO
About 7.1%.
Answered
High priority
Reason for large slippages from non-EEB pool.
Asked by Puneet Balani, Macquarie
Attributed to seasonality and provided comparative data.
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Question
On the total non-EEB pool... it looks like a bulk of the slippages are from SMA zero... Can you comment more on this?
Sunil Samdani, CFO
If you compare it with the last year's first quarter, there itself, we had a slippages of about INR 950 odd crore... This is not something unusual. That's the seasonality which always play out.