Bandhan Bank Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Advances growth continued to remain robust at 52% YoY to | 32590 crore, above our estimate. Micro loans (forms 85.8% of advances) grew 44.8% YoY to | 27979 crore while non micro loans rose 127% YoY from | 2068 crore in Q1FY18 to | 4614 crore in Q1FY19 NII increase was higher than estimate at 39.5% YoY to | 1037 crore led by robust growth in AUM and strong margins at ~10.27%. On a sequential basis, NIM increased ~100 bps from 9.3% in Q4FY18 to...

Bandhan's 1QFY19 results indicate strong momentum across all fronts (loan growth 52% YoY, deposits 37% YoY, earnings 47.5% YoY) as well as stability across key qualitative parameters (GNPLs flat QoQ, cost-income ratio 34.2%, down 140bps YoY). Microbanking loan book grew 45% YoY, while other retail loans were up 123% YoY on a low base. CASA deposits were up 84% YoY, with CASA ratio of 35.5%. NIMs benefitted from the recent capital raise to expand to 10.3% and Tier1 ratio now stands at 31.4%. Nonmicrobanking assets are now 14.2% of the loan mix. The bank added 0.39mn microbanking customers (+4.7% growth) and 0.25mn retail banking customers (11% growth). We upgrade our earnings estimates by 2%/5% for FY19/20 resulting into a revised TP of INR650...

Bandana Bank, despite being a former micro-finance players and considering the impact of demonetization, posted the lowest NPAs amongst scheduled commercial banks with a GNPA ratio of 1.25% & NNPA ratio of 0.58% as on 31st March 2018 . In absolute terms, gross NPA were `373.14 core compared with `86.26 cores and Net NPA stood at `172.90 core against `61.17 cores. However,...

Bandhan Bank, despite being a former micro-finance players and considering the impact of demonetization, posted the lowest NPAs amongst scheduled commercial banks with a GNPA ratio of 1.25% & NNPA ratio of 0.58% as on 31st March 2018. In absolute terms, gross NPA were ` 373.14 crore compared with ` 86.26 crores and Net NPA stood at ` 172.90 crore against ` 61.17 crores. However, on a sequential basis, Bank witnessed stable growth and reduction in bad loans with gross NPA ratio down from 1.67 % in the third quarter ending December 2017 Bank has taken various initiative too closely monitor asset quality, and expects asset quality to further improve and credit cost to decline in FY2019. The bank has been making provision at the higher rate of 1% for standard advances against the...

Bandhan Bank Ltd is a newly licensed commercial bank transformed from a microfinance in August 2015. Currently the bank has a network of 887 branches and 430 ATMs, remarkable growth within a short span of time. They largely focusing on serving underpenetrated and underbanked rural markets of India. As on 9MFY18, the bank's net advances stood at Rs22,931cr against Rs12,438cr in FY16. On the liability side the bank has build a strong base of current account and savings account deposits with a healthy CASA ratio of 33.2%. The company...

IPO NOTE

Operating Model Focused on Serving Underbanked and Underpenetrated Markets: The Company's focus on underbanked and underpenetrated markets allows it to meet certain regulatory requirements. As the company focuses specifically on serving underbanked and underpenetrated markets, 29.15% of its banking outlets are located in unbanked rural areas and 96.49% of its Gross Advances are Priority Sector Lending (PSL)...

Bandhan Bank Ltd. (BBL), incorporated in 2014 is a Kolkata based commercial bank promoted by its founder, MD and CEO Mr. Chandra Shekhar Ghosh. BBL provides pan-India services with focus on micro banking and general banking services majorly serving under-banked and underpenetrated markets in India. BBL is the first microfinance company and the first in a decade that was granted a banking license. BBL started its operation as an NGO in 2001 which was transferred into India's largest microfinance company by number of customers and size of loan...

Bandhan Financial Services had received in principle approval from RBI to set up a Bank and it began its banking operations in August 2015 with the name Bandhan Bank Ltd (Bandhan). The bank has grown remarkably in a very short span of time. It primarily focuses on serving underbanked and underpenetrated markets in India (East and North Ea..