Bandhan Bank Limited — Q3 FY25
Bandhan Bank's Q3 FY25 results were weak, with PAT at INR 426 crore, down 42% YoY, driven by elevated provisions of INR 1,376 crore (including INR 336 crore from technical write...
bearish
high
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.
75%Questions answered0Evaded / deflected10Questions audited
Partial answer
High priority
How will the share of EEB change by FY27 or FY26?
Asked by Hardik Shah, ICICI Securities
Management gave directional strategy but did not provide a specific EEB share target for FY26 or FY27.
no specific timeline givenno quantitative target for EEB share
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Question
Just wanted to check how would you view the share of EEB because I think in your unsecured, you have some proportion of the retail unsecured also. So just wanted to check by FY 2027 end or maybe FY 2026 end, how do you see the EEB share?
Partha Pratim Sengupta, Managing Director and CEO
If I grow, say, 1x in EEB, I will grow 3x in the other segments. So that is our very clear-cut strategy, and accordingly, we have framed it. And today, if you look at our figures also, we have already increased our secured percentage from 42% to 49%. So if we continue with this trend only, this 55% percentage what we are focusing will be achieved.
Partial answer
High priority
Will Q4 MFI disbursement be better than Q3's INR 12,000 crore?
Asked by Hardik Shah, ICICI Securities
Confirmed growth but did not quantify the expected disbursement amount.
no specific number givenvague 'little growth'
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Question
But sir, it should still be better versus 3Q, right, wherein we have done some INR 12,000 crores.
Rajinder Kumar Babbar, Executive Director and Chief Business Officer
So it is, yeah, definitely, because as the MD sir has said, we are going for a balanced growth as compared to the EEB that's going to move faster. So definitely, we will disburse in the EEB book in this quarter. And we are expecting a little growth, but not as compared with the last year.
Partial answer
High priority
Will MFI slippages improve in Q4 and Q1 with guardrails?
Asked by Hardik Shah, ICICI Securities
Provided a range for Q4 slippages but did not give a clear improvement trajectory for Q1.
range given instead of precise numberuncertainty in outlook
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Question
How should we look at the MFI slippages in Q4 and maybe Q1 when tighter guardrails come into picture? So would it be fair to assume maybe the similar forward flow from SMA to NPA till the time we get more comfortable in the external environment, or do you think we have reached to a level wherein SMA to NPA should start seeing some improvement?
Partha Pratim Sengupta, Managing Director and CEO
So maybe the level of slippages would not be 1,196, what we have witnessed in Q3, but it will be substantial. So the thing is that not much improvement in the slippages. It may not be INR 1,200 crore, maybe close to INR 1,000 or maybe like that. But slippages, we are seeing that trend.
Answered
Low priority
What is the average maturity of the EEB portfolio?
Asked by Hardik Shah, ICICI Securities
Provided specific average and range for EEB portfolio maturity.
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Question
I wanted to know the average maturity of our EEB portfolio.
Partha Pratim Sengupta, Managing Director and CEO
So it is mainly two years. Maximum is two years and average is around 18 months. So it varies from one year to two years.
Answered
Medium priority
What is the yield on the EEB book and is it declining?
Asked by Hardik Shah, ICICI Securities
Provided both disbursement yield and average quarterly yield.
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Question
And lastly, on the yield side, so what is our yield on the EEB book? I mean, what yield do we operate at?
Rajeev Mantri, CFO
22.95% at the time of the disbursement, yes. On average, the yield for the quarter was about 20.3%.
Partial answer
High priority
How will NIMs shape up over 2-3 years with shift to secured?
Asked by Hardik Shah, ICICI Securities
Confirmed NIM moderation but did not provide a quantitative forecast for 2-3 years.
no specific NIM target givenqualitative only
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Question
On a two-to-three-year basis, we are going to shift our portfolio from unsecured to secured. Along with that, the MFI yields also are going to get depressed due to the guardrail rule coming up. So how are we looking at our NIMs shaping up in the next two to three years?
Partha Pratim Sengupta, Managing Director and CEO
As we go more secured and we do more secure business, this NIM is definitely going to be moderated. So that trend is also visible right now also, 7.3%. So it has come down to 6.9% during the quarter. So that will be a little bit more moderated in the coming quarters, no doubt on it.
Answered
Medium priority
Is Bandhan aligned with the two-plus-one member rule in MFI?
Asked by Roshni, CLSA
Clearly stated that Bandhan already follows stricter norms than industry.
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Question
I just wanted to check if we are currently aligned with the two plus one member rule in MFI, or is that something that's going to come in for us from April 1st onwards?
Partha Pratim Sengupta, Managing Director and CEO
So the industry is still doing three plus one, but we are doing two plus one. So that is one. Ours is a little bit tougher than the industry. Number two is that the industry is giving a DPD of 60 days, whereas we are taking it as a 30 days.
Answered
Medium priority
What was the interest reversal for this quarter?
Asked by Roshni, CLSA
Provided the exact figure for interest reversal.
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Question
And if you could just mention what the interest reversal for this quarter has been like?
Rajeev Mantri, CFO
Yeah, so the interest reversal for the quarter was around INR 69 crores.
Partial answer
High priority
How will the shift to secured impact credit cost?
Asked by Vinayak Agarwal, Jefferies
Answered generally about credit cost drivers but did not address the specific impact of the shift to secured on FY25 credit cost.
did not directly link shift to secured to credit costno FY25 specific guidance
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Question
You mentioned that the share of secured loans will continue to inch up from current levels of 40%-55%, and NIMs, as a result, will modulate. Could you also comment on how this will impact credit cost in the FY 2025?
Partha Pratim Sengupta, Managing Director and CEO
Credit cost has very little to do with the secured or unsecured advances. Credit cost is more dependent on two factors. One is your total advances and the loan loss provision... we have an internal target of achieving a credit cost of 2%.
Answered
Medium priority
What drove the dip in collection efficiency from September to December?
Asked by Vinayak Agarwal, Jefferies
Explained the geographic drivers and provided January improvement as outlook.
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Question
If you look at the collection efficiency, we've seen a dip for the month of December versus September. Could you please explain what is driving this and what's your outlook here?
Vishal Wadhwa, Head of Emerging Entrepreneurs Business
The collection dip that happened in quarter three as compared to quarter two was marginal, specifically in certain geographies of UP, Tamil Nadu, Maharashtra, and Gujarat for us. But what we have seen is in the month of January, the collection efficiencies have been better in comparison to December month.
Answered
Medium priority
What precautions has Bandhan taken regarding the Karnataka ordinance?
Asked by P.V. Jayaprakash, L&T
Provided portfolio size, delinquency, and stated no major risk perceived.
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Question
The scenario, what is happening with me? So have you taken some precautions or have taken some steps towards that, how to tackle this?
Partha Pratim Sengupta, Managing Director and CEO
Our Karnataka portfolio is only INR 740 crores out of a total EEB portfolio of INR 56,000 crores, which is very, very small, and only 13% of which is now delinquent. It is more or less, as we have been telling, that what is happening in the rest of India, apart from Bengal and Assam, the trend is almost in line with that.