Bandhan started in 2001 as a not-for-profit enterprise that stood for financial inclusion and women empowerment through sustainable livelihood creation. It turned into an NBFC a few years later but the core objective remained financial inclusion. When Bandhan Bank started operations on August 23, 2015, it was the first instance of a microfinance entity transforming into a universal bank in India. On the day of launch itself, Bandhan Bank started with 2,523 banking outlets.
Bandhan Bank is driven by a constant desire to serve better. It offers world-class banking products and services to urban, semiurban, and rural customers alike. In the last few years of operations, Bandhan Bank has spread its presence to 34 of the 36 states and union territories in India with 4,559 banking outlets serving 2.01 crore customers, as on March 31, 2020. With its experienced management, diversified team, and well-entrenched distribution, Bandhan Bank is well poised to meet the aspirations of its customers and stakeholders.
The share price of Bandhan Bank Ltd fell ~5% intraday to Rs 229 on 12th May 2020 ahead of its results. The results were declared just a few minutes before the closing bell.
The bank's net interest income (NII) rose by 9% sequentially and 34% YoY to Rs 1,680 crores during Q4FY20. NII for FY20 rose 41% YoY to Rs 6,324 crores from Rs 4,495 crores in FY19. The net interest margin (NIM) for Q4FY20 (merged) was 8.1% as compared to 7.9% in Q3FY20 and 10.7% in Q4FY19 on a standalone basis. The Non-Interest income for Q4FY20 was Rs 500 crores, an increase of 28.87% on a YoY basis.
Gross non-performing assets (NPAs) saw a decline of 1.48% as compared to 2.04% in the same period in Q4FY19. In absolute terms, the gross NPA figure for the March quarter stands at Rs 993 crores as compared to Rs 820 crores in Q4FY19, a rise of over 20%. On a sequential basis, the performance of the gross NPA figure has improved by 16%. The net NPA of the bank stood at 0.58% as compared to 0.81% in Q3FY20 and 0.58% in Q4FY19.
The lender has made provisions to the tune of Rs 827 crores in the quarter ended on March 31, 2020, as compared to Rs 153 crores in Q4FY19. Sequentially, the bank had set aside Rs 295 crores in the December quarter as provisions and contingencies. During the quarter the Bank has taken COVID 19 related provision amounting to Rs 690 crores. This provision is higher than the RBI minimum required provision. With this provision and additional Standard Assets provision that Bank is carrying in Micro banking portfolio total additional provision in books stands at Rs 1,000 crores.
At the end of March 2020, the bank's Total Capital to Risk (Weighted) Assets Ratio (CRAR) is at 27.43%; Tier I at 25.19%, and CET 1 at 25.19%.
Total Advances in Q4FY20 grew by 60% to Rs 71,846 crores as compared to Rs 44,776 crores on a YoY basis and 9.76% against Rs 65,456 crores on a QoQ basis. The total deposits increased by 32.04% to Rs 57,802 crores as on March 31, 2020, as compared to Rs 43,232 crores as on March 31, 2019, and 3.96% QoQ against Rs 54,908 crore as on December 31, 2019.
Overall, the lender's operating profit for the quarter was Rs 1,521 crores, up by 32% YoY from Rs 1,154 crores in Q4FY19. The bank registered a 21% fall in Net Profit to Rs 517 crores as compared to Rs 651 crores in the previous quarter ended inMarch 2019.
“Q4FY20 has been a satisfying quarter given the challenges faced during the quarter. During the quarter, the Bank has showcased the strengths of its deposit franchise with continuously growing deposits in all the segments. The Bank has made additional COVID 19 related provision on standard advances amounting to Rs 690 crores. We have taken all the necessary steps to ensure the safety of our customers and employees. We further endeavor to work with our employees and customers ensuring to be at the service in this critical time” said Mr. Chandra Shekhar Ghosh, Managing Director, and CEO of Bandhan Bank.
Banking outlets as on March 31, 2020, stood at 4,559. The network consists of 1018 branches, 3,346 banking units (DSC), and 195 GRUH Centers as against 986 branches and 3,014 banking units (DSC) as on March 31, 2019. The total number of ATMs stood at 485 as of March 31, 2020, against 481 as of March 31, 2019. During the year, the number of employees of the bank has gone up from 32,342 to 39,750.
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