Bandhan Bank Ltd. share price target

Bandhan Bank operates as a commercial bank. It provides checking accounts, savings deposits and money market, mortgage and term loan services. It also offers card facilities and internet banking services. Bandhan...

Bandhan Bank started financial year FY20 with an impressive set of numbers surpassing our estimates on all fronts. PAT during Q1FY20 grew by 46% yoy to Rs 701 cr vs. our estimate of Rs 591 cr, led by strong credit growth, stable margins and controlled cost. Loans (on book + off book) surged by 39% yoy while micro loans grew by 40%. Non-micro assets growth was at 36% yoy. Liabilities of the bank are gaining more traction with a deposit growth of 42% YoY. CASA ratio increased to 36.1% from 35.5% YoY, retail deposits to total deposits stood at 76.1%. Margins improved further from 10.3% to 10.5% YoY...

resulted in CASA share reducing from 41% to 36% in one quarter itself. Many banks that have reported Q1 results have shown decline in CASA deposits. In our view, management will have to resort to branch expansion to keep up momentum of CASA deposits. Also, incremental loan growth is being driven by increase in the ticket size of the micro-loans which to some extent...

Bandhan Bank continued its growth traction with AUM growth of 39.4% YoY to | 45420 crore, driven by both micro (40% YoY) as well as non-micro loans (36% YoY). Steady customer acquisition at ~7.1 lakh and healthy growth in average ticket size to | 64000 led to AUM growth. Deposit accretion continued to stay healthy at 29% YoY to | 43701 crore. However, sequentially CASA saw de-growth while term deposit continued...

Bandhan Bank Ltd. (BBL) was incorporated in 2014 as a wholly owned subsidiary of Bandhan Financial Holdings Ltd. (BFHL). Kolkata- headquartered BBL is the first bank to be set up in the eastern part of India after Independence and is 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 urban, semi-urban and rural markets in India. BBL is the first microfinance entity and the first in a decade that was transformed into a universal bank in India. BBL started its operation as an NGO in 2001 which was transferred into India's largest microfinance company by number of customers...

Bandhan Bank has delivered a stellar set of numbers in 4QFY19, ahead of our expectation. It has reported strong numbers on all fronts asset quality, AUM growth, profitability and margin. PAT jumped substantially by 68% YoY to Rs 651 cr, supported by strong topline growth. Strong AUM growth of 33% YoY, led to 46% YoY growth in NII resulting into sharp uptick in NIM. Robust growth in other income and higher margin with normal credit costs enabled Bandhan to deliver +5% RoA during the quarter. Asset quality trend continued to improve as GNPAs declined by 37bps QoQ to 2% (Ex-IL&FS; 1%), and PCR was...

Traction in business decelerated marginally though it remained healthy at ~30% YoY. Healthy customer acquisition at ~23% YoY to 95 lakh & 14% YoY increase in average ticket size to | 59700 led to AUM growth 38.5% YoY. Micro & non micro segment grew ~40% YoY & ~31% YoY, respectively, though deceleration is seen compared to previous run rate. Deposit saw healthy traction of 27.6% YoY to | 43232 crore, led by robust growth of 49% YoY & 54% YoY in current & savings deposit while retail term...

micro loans reported growth of 40%. Non-micro loan AUMs growth was at 37.3% yoy. Liabilities of the bank are gaining more traction CASA touching 41%, retail to total deposits forming 77.4%. Margins improved further during the quarter from 10.5% to 10.7% led by improvement...

Absolute GNPA surged more than doubling to | 8310 crore, led by prudent recognition of entire | 388 crore of exposure to IL&FS; group. Accordingly, GNPA ratio increased ~112 bps QoQ to 2.41% Bank has made full provision of ~| 385 crore. This has kept overall credit cost higher, which has impacted growth in profitability. Therefore, PAT came in at | 331 crore, up 10% YoY. It had reversal of MTM provision of ~| 96 crore in Q3FY19. Customer acquisition remained robust with 9.22 lakh customers...

ICICI Securities Ltd | Retail Equity Research AUM growth continued to remain robust at 51% YoY to | 33373 crore. Micro loans (form 86% of advances) grew 47.3% YoY to | 28974 crore, while non micro loans grew 80.2% YoY NII growth continued to remain robust at 55.4% YoY to | 1077 crore led by AUM growth and strong margins at ~10.3%. Margins remained steady QoQ at 10.3%. Non-interest income grew 3.5% YoY to | 230 crore. The bank realised | 263 crore from sale of PSL...