Bandhan Bank Limited — Q2 FY24
Bandhan Bank reported a strong Q2 FY24 with PAT surging 245% YoY to INR 721 crore, driven by improved collection efficiency and lower credit costs.
neutral
medium
✓ Verified against BSE filing
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.
55%Questions answered4Evaded / deflected11Questions audited
Evasive
High priority
Will SME slippage run rate continue next quarter?
Asked by Mahrukh Adajania, Nuvama Wealth Management
Asked for specific slippage guidance; management gave qualitative historical trend without numbers.
no number givendeferred to historical trend
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Question
If you assume the same run rate of slippage, then would you again have a slippage of around INR 10-11 billion even in the next quarter? Or will recoveries improve materially?
Sunil Samdani, CFO
H2 historically has always been a better half... we expect this to reflect in the slippages number also going forward. And also, as I mentioned earlier, the recoveries will continue to improve.
Declined
High priority
Can you provide a slippage run rate for 2H?
Asked by Mahrukh Adajania, Nuvama Wealth Management
Explicitly refused to provide a number, redirected to slides.
refused to give numberredirected to presentation slides
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Question
Any run rate of slippage for 2H, percentage terms or any such thing that, if at all it's possible, to guide?
Sunil Samdani, CFO
So we don't want to put a number, but for that very reason, we've added 2 more blocks into our presentation... it gives us the confidence that the steady state credit card guidance that we've been giving is in line with that.
Declined
Medium priority
Can you provide DPD by vintage instead of NPA?
Asked by Gaurav Kochar, Mirae Asset
Stated the data is not available, effectively declining.
data not available
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Question
Rather than giving the NPA number, do you have a delinquency number, let's say 30+? How much of that-
Chandra Shekhar Ghosh, Founder, MD & CEO
That is not, not in hand now. It is not in hand now.
Partial answer
Medium priority
Is there a case to increase PCR given low recovery rates?
Asked by Gaurav Kochar, Mirae Asset
Provided current PCR levels but did not answer whether they plan to increase it.
did not address whether PCR should increase
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Question
Is there a case of increasing the PCR, moving it to maybe closer to 80%, where most of the banks are today?
Sunil Samdani, CFO
As far as our PCR on the EEB book goes, we are at 85%... the coverage on the unsecured book is already at an elevated level of 55%.
Declined
High priority
What could be the slippage or credit cost run rate going forward?
Asked by Gaurav Kochar, Mirae Asset
Explicitly refused to provide a number.
refused to give number
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Question
What could be the slippage run rate or credit cost run rate? Anything you can guide?
Sunil Samdani, CFO
We don't want to put a number to it today, but the DPD pool has substantially come down quarter-on-quarter, so we expect the slippages also accordingly to reflect that change.
Answered
High priority
How are you looking at cost of funds incrementally?
Asked by Jay Mundra, ICICI Securities
Provided specific basis point guidance and range.
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Question
How are you looking at cost of funds, sir, incrementally? Should they remain firm up, or you think they have already peaked?
Sunil Samdani, CFO
We feel that it will be 20 basis points or 25 basis points going up, next 2 quarters. But it will be compensated with higher yield, so we will remain in the range of 7-7.5 on the mean side.
Answered
High priority
Are you confident of 20% AUM growth despite negative YTD?
Asked by Jay Mundra, ICICI Securities
Affirmed confidence in 20% growth target with explanation.
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Question
YTD it is still a bit negative... you are confident of the 20% YOY growth, right?
Sunil Samdani, CFO
We saw that there is an normally, Q2 always has been taken the time to balance the March figure... the Q3 will be like to exceed the YTD, and the March it will become to this, the nearly 20%.
Partial answer
Medium priority
Why is fresh flow into DPD still high at 3-4%?
Asked by Himanshu Taluja, Aditya Birla Mutual Fund
Gave steady state expectation but did not address why current flow is elevated.
did not explain why current flow is higher than 2.5%
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Question
Your fresh flows from the standard book... still remains 3%-4% of your book basically... what is the why that fresh flow still remains high?
Sunil Samdani, CFO
On a steady state basis, we still expect about 2.5% to be the flow, and then there would be a recovery from there. And which would bring us to that desired level of credit cost.
Answered
Medium priority
Why has interest on advances not gone up despite repricing?
Asked by Saurabh Kumar, JPMorgan
Explained the reason clearly with timing of growth.
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Question
Your interest on advances has not gone up. So can you just tell us, because I thought there would be some repricing which would happen in the microfinance book.
Sunil Samdani, CFO
The growth for the quarter has been backended... July and 1H of August, we were still degrowing... the average for the quarter is lower than Q1, and that's precisely why my interest income is lower.
Answered
Low priority
Was there a one-off in savings deposit growth this quarter?
Asked by Prabal Gandhi, Ambit Capital
Denied one-off and explained the trend.
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Question
This quarter, we saw very good pickup in savings deposits... was there a one-off in our deposits this quarter?
Sunil Samdani, CFO
There has not been any element of volatility in our book... as we've now increased the savings bank's rates as well, we see a stability in the savings bank deposits.
Answered
Medium priority
Is there a change in strategy to increase group loan share?
Asked by Prabal Gandhi, Ambit Capital
Clarified no strategy change, explained growth in other segments.
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Question
We saw very sharp jump in group disbursements. So is there a change in strategy, or this is just an opportunistic kind of disbursement?
Sunil Samdani, CFO
The idea was never to degrow the EB or a group loan book. The idea was that the other businesses will pick up faster so that our secured, unsecured balances make up.
Answered
High priority
What changed on CGFMU recovery timeline?
Asked by Prakhar Agarwal, Elara Capital
Explained the reason for delay (audit and queries).
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Question
What made us change our stance in one quarter, wherein we were so certain that it will get reflected in Q2?
Ratan Kumar Kesh, Executive Director & COO
In the second tranche, there is an audit happened, and given that audit has happened and there are certain queries raised, so we are answering all of those queries.