Bandhan Bank Limited — Q4 FY24
Bandhan Bank reported a Q4 FY24 PAT of ₹55 crore, sharply down due to a ₹3,852 crore technical write-off on legacy microfinance loans, primarily from pre-2022 vintages.
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 answered0Evaded / deflected12Questions audited
Answered
High priority
Breakdown of technical write-off between CGFMU and non-CGFMU, and what drove the write-off.
Asked by Mahrukh Adajania, Nuvama
Management provided specific breakdown and clear rationale for the write-off.
Read the exchange
Question
So of the total write-offs, how much was CGFMU, and likewise for the provision, right? ... what really drove the overall technical write-offs, as in that it was just a prudent measure, or it was a regulatory nudge?
Rajeev Mantri, CFO
the CGFMU portfolio within that was INR 3,053 crore, and remaining was about INR 800 crore. ... this is primarily coming from the perspective of looking at what kind of collection has happened on this particular book, and also looking at strengthening our portfolio quality.
Partial answer
Medium priority
How to view slippages in context of SMA disclosures going ahead.
Asked by Mahrukh Adajania, Nuvama
Provided slippage numbers but did not explain how to view them relative to SMA data.
did not address SMA context directly
Read the exchange
Question
So how do you think of how should we view slippages in the context of the SMA disclosures going ahead?
Rajeev Mantri, CFO
our slippage is, as I had mentioned, for quarter four was INR 1,017 crore, which is a significant improvement that we've seen compared to the last quarter of INR 1,390 crore.
Answered
High priority
Is the entire CGFMU audit portfolio already written off with no additional P&L impact?
Asked by Jai Mundhra, ICICI Securities
Clear affirmative answer.
Read the exchange
Question
The entire CGFMU audit portfolio has already been written off, right? So there is no additional PNL impact, irrespective, negative impact, irrespective of the outcomes of the audit. Is that understanding right?
Rajeev Mantri, CFO
Correct. That's correct.
Answered
High priority
What is the outstanding provision on the EEB GNPA portfolio?
Asked by Jai Mundhra, ICICI Securities
Provided PCR percentage directly.
Read the exchange
Question
Out of the INR 3,200 crore EEB book, what is the outstanding provision?
Vikash Mundhra, Head of IR
Jai, we have a PCR of 75% on our EEB portfolio.
Partial answer
High priority
How should one look at credit cost given slippage stabilization?
Asked by Jai Mundhra, ICICI Securities
Two different numbers given (2.5-2.6% vs 1.8%) causing confusion.
contradictory numbers from different executives
Read the exchange
Question
So even if slippages were to stabilize at INR 1,000 crore ± on a quarterly basis, the credit cost, how should one look at the credit cost?
Rajeev Mantri, CFO
our normalized credit cost should be more around 2.5%-2.6% ... Chandra Shekhar Ghosh: 1.8% credit cost in the financial year 2024-2025.
Answered
Medium priority
What is the sustainable fee income from ARC and provision releases?
Asked by Jai Mundhra, ICICI Securities
Provided a specific quarterly range.
Read the exchange
Question
How, is there, what, what kind of a sustainability, could be there in this, fee, fee income item?
Vikash Mundhra, Head of IR
around INR 60 crore-INR 80 crore of, you know, income from the ARC recovery, we would expect every quarter.
Answered
High priority
What is the steady state loan growth expectation for FY25?
Asked by Jai Mundhra, ICICI Securities
Provided a clear growth range.
Read the exchange
Question
what could be the, let's say, FY 2025 growth expectations on loan growth?
Chandra Shekhar Ghosh, MD & CEO
Total bank, we will, we will 18% plus. ... Rajeev Mantri: roughly around 17% to 18% to 20% growth
Answered
High priority
What was the write-off of CGFMU and non-CGFMU book?
Asked by Piran Engineer, CLSA
Repeated the breakdown clearly.
Read the exchange
Question
if you can just repeat, what was the write-off of the CGFMU book and the non-CGFMU book? I missed it.
Rajeev Mantri, CFO
Roughly for the CGFMU book was around INR 3,050 crore and about INR 800 crore for the remainder.
Answered
Medium priority
What are the standard asset provisions outstanding?
Asked by Piran Engineer, CLSA
Provided a specific total figure.
Read the exchange
Question
in the entire book, what are our standard asset provisions outstanding over and above the INR 3,400 crore NPA provision?
Rajeev Mantri, CFO
INR 900 crore plus of standard asset provision that exists.
Partial answer
Medium priority
Where are slippages coming from and what is the run rate?
Asked by Piran Engineer, CLSA
Identified states but did not quantify expected run rate.
no specific run rate given
Read the exchange
Question
in terms of our, slippages from MFIs, I think INR 625 crore slip, but it's still a relatively high number, like 4% annualized. So any particular states where you're seeing this slippage, and how should we think about, a run rate level there?
Vishal Wadhwa, Business Head of EEB
slippages primarily coming in from states of Punjab, and also some of that is being carried forward from Manipur. ... Going forward, I think the trajectory would remain similar.
Partial answer
High priority
How sustainable is the NIM improvement and were there one-offs?
Asked by Nitin Aggarwal, Motilal Oswal
Explained sustainability but did not confirm or deny one-off reversals.
did not directly address one-off interest reversal
Read the exchange
Question
how sustainable is this NIM? And was there any one-off interest reversal that really supported this performance?
Rajeev Mantri, CFO
we've seen higher NIM improvement of about 38 basis points. ... as the slippages continue to perform better, we do see an improvement that will help us on the NIMs.
Answered
High priority
Timeline for audit completion and impact on earlier claim?
Asked by Nitin Aggarwal, Motilal Oswal
Provided timeline and clear view on no impact to earlier claim.
Read the exchange
Question
any specific timeline, if you can share? And, do you think that the outcome of this audit can have a bearing on the earlier claim also that got passed and not just the pending one?
Ratan Kumar Kesh, ED & COO
we believe that we should be able to get a resolution in the next, which is this particular quarter, which is quarter one. ... we do not believe at this stage of any impact of the tranche one claim.