Loan growth of 20%+ in FY24
Advances expected to grow over 20% for the full year, with microfinance growing 17%.
BANDHANBNK / guidance tracker
Keep management guidance in view.
Bandhan Bank · forward-looking guidance across the available source record.
Research layer active
Guidance tracker
What management said would happen.
growth
Credit cost around 2% with 20bps variance
Credit cost guided at approximately 2%, with a possible variance of 20 basis points.
NIM guidance of 7-7.5%
Net interest margin expected to remain in the 7% to 7.5% range.
Branch count target of 1,600 by FY24 end
Bank plans to reach approximately 1,600 branches by the end of the financial year.
Loan growth of 18-20% for FY25
Management expects overall loan book growth of 18-20% for FY25, with secured book growing faster than EEB.
Deposit growth higher than loan growth
Deposit growth will continue to outpace advances growth, with focus on retail deposits.
NIM maintained at 7-7.5%
Net interest margin is expected to remain in the range of 7-7.5% for FY25.
Credit cost guidance of 1.8-2% for FY25
Credit cost for FY25 is expected to be in the range of 1.8-2%, despite Q1 coming in lower at 1.6%.
Credit cost guidance of 2.5% for FY26
Management reiterated target of 2.5% credit cost for full year, with sequential improvement expected each quarter.
EV portfolio growth of 5-8% in FY26
EV book expected to grow 5-8% for the full year, with H2 recovery compensating for H1 decline.
Overall advances growth of ~10% in FY26
Total advances growth target of around 10% for FY26, driven by non-EV segments growing at 26-27%.
NIM stabilization in H2 FY26
Management expects NIM compression in Q2 but stabilization in H2 due to lower slippages and deposit repricing benefits.
Loan growth of ~20% YoY for FY24
Management expects overall advances to grow nearly 20% year-on-year, driven by festive demand and strong disbursements in H2.
Credit cost guidance of 2% ±20bps for FY24
The bank expects credit cost to remain in the range of 1.8% to 2.2% for the full year, supported by lower slippages and higher recoveries in H2.
OpEx to assets ratio of 3.5% for FY24
Management guided for operating expenses to assets ratio of 3.5% for FY24, with balance sheet growth in H2 absorbing costs.
Secured loan share target of 50% by FY26
The bank aims to increase the share of secured assets to 50% of total advances by fiscal year 2026, up from 44% currently.
Credit cost guidance of 1.8%-2% for FY25
Management expects full-year credit cost to remain within 1.8%-2% of advances, with Q3 potentially elevated but Q4 showing improvement.
Advances growth of 18% ± 1% for FY25
Overall advances growth target of 18% ± 1%, with EEB growing at 10%-12% and secured book growing faster.
NIM guidance of 7%-7.5% for FY25
Net interest margin expected to remain in the 7%-7.5% range, with some moderation in coming quarters due to product mix shift.
OpEx to assets ratio similar to FY24
Operating expenses to average assets ratio expected to be at similar levels as FY24, around 3.7%-3.8%.
Credit cost target of 2.5-3% for EEB by FY27 exit
Management expects EEB credit cost to settle at 2.5-3% by FY27 exit, with overall bank credit cost at 1.5-1.6%.
NIM improvement from Q4 onwards
NIM is expected to bottom at 5.8% in Q2 and improve from Q4 as term deposit repricing benefits flow through.
EEB growth to resume from Q3
EEB portfolio is expected to see gradual growth from Q3 onwards as operating environment shows signs of recovery.
Secured mix to increase to 57-58% over 7 quarters
Secured loan mix is expected to increase further by 2-3 percentage points over the next 6-7 quarters.
Secured assets to reach ~50% by FY26
Management expects secured portfolio share to increase from current 44.5% to nearly 50% by FY26.
NIM to remain in 7%-7.5% range near-term
Management guided NIM to stay around 7%-7.5% in the near term, with a strategic review in March.
ROA target of 2.5%-2.8% and ROE of 14%-18%
Medium-term guidance for ROA and ROE, with detailed three-year plan to be shared after February strategy meet.
Secured mix target of 55%+ by FY27
Management aims to increase secured advances share from 49% to over 55% by FY27, with secured book growing 3x faster than EEB.
Credit cost target of ~2% in near term, 1.5-1.6% by FY27
CFO guided for overall credit cost to stabilize around 2% in the near future and decline to 1.5-1.6% by FY27 as secured mix improves.
NIM to moderate further
CEO stated NIM will continue to moderate as the bank shifts to secured assets, but ROA target remains near 2% through volume growth and cost control.
EEB disbursements to be calibrated in Q4
Management indicated Q4 EEB disbursements will be moderated versus prior year, with focus on renewals for good-quality borrowers.
Credit cost target of 1.6-1.7% by Q4 FY27
Management reiterated medium-term credit cost guidance of 1.6-1.7% overall and 2.5-3% for the EB segment by end of FY27.
Advances CAGR of 15-17% over 2-3 years
Management guided for 15-17% CAGR in advances, with deposit growth expected to be higher than loan growth.
NIM improvement from current levels
CFO expects NIM to improve from 5.9% due to cost of funds declining 35-50 bps over next 2-3 quarters, partly offset by repo rate cut impact of ~11 bps.
EB book to show sequential growth
Management expects the microfinance portfolio to grow sequentially, with degrowth phase behind, supported by improving disbursements and collections.
Loan growth of 17-20% in FY25
Management expects total advances to grow 17-20% over the next 2-3 years, with EEB growing 14-15%.
Normalized credit cost of 1.8-2% in FY25
CFO guided for total portfolio credit cost between 1.8% and 2% in FY25, down from 3.4% in FY24.
Deposit growth to outpace advances growth
Bank aims for liability-first approach with deposits growing faster than assets to improve CD ratio.
CGFMU claim resolution expected in Q1 FY25
Management expects the pending CGFMU audit to conclude in Q1 FY25, with a positive outcome anticipated.
Advances growth of 15-17% over next 3 years
Targeting 15-17% year-over-year advances growth, with secured mix exceeding 55% by FY27.
Credit cost target of 1.5-1.6% over 2-3 years
Expect credit costs to improve from current elevated levels to 1.5-1.6% on a full-year basis over the next 2-3 years.
ROA target of 1.8-1.9% over 2-3 years
Aiming for return on assets of 1.8-1.9% over the next 2-3 years, driven by better asset quality and operating leverage.
OpEx to asset ratio to increase 10-20bps over 2 years
Operating expenses to average assets ratio expected to rise by 10-20 basis points from current levels over the next two years due to investments.
ROA target of 1.6-1.8% by Q4 FY27
Management reiterated guidance to achieve ROA of 1.6-1.8% (give or take 10bps) by exit of FY27, driven by margin improvement, lower credit costs, and higher fee income.
NIM improvement of 10-20bps over next 2-3 quarters
Expect further NIM expansion of 10-20bps from current 6.2% level, driven by continued reduction in cost of funds as term deposits reprice.
Credit cost guidance of 1.6-1.7% by exit FY27
Credit cost expected to improve from current 2% to 1.6-1.7% by Q4 FY27, aided by sustained collection efficiency and lower slippages.
PSLC cost reduction by 50% in FY27
Priority sector lending certificate cost expected to halve in FY27 compared to FY26, with near-neutralization by FY28, driven by process improvements in EEB and direct agri loans.