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Bandhan Bank Ltd

BSE Code : 541153 | NSE Symbol : BANDHANBNK | ISIN:INE545U01014| SECTOR : Banks |

NSE BSE
 
SMC up arrow

182.40

1.25 (0.69%) Volume 6616867

18-May-2024 11:54:59

Prev. Close

181.15

Open Price

180.00

Bid Price (QTY)

182.35(484)

Offer Price (QTY)

182.40(667)

 

Today’s High/Low 186.00 - 178.10

52 wk High/Low 272.00 - 170.30

Key Stats

MARKET CAP (RS CR) 29190.78
P/E 9.78
BOOK VALUE (RS) 129.082268
DIV (%) 15
MARKET LOT 1
EPS (TTM) 18.52
PRICE/BOOK 1.4037559364854
DIV YIELD.(%) 0.83
FACE VALUE (RS) 10
DELIVERABLES (%) 34.36

F&O Quote

181

1 (1%)
Open Price 182 Average Price 182 Open interest 105,002,500
High Price 183 No. Of Contracts Traded 5,922,500 Open Interest Change -5,880,000
Low Price 179 Turnover (`. In Lakhs) 1,076,769,725 Open Interest Change(%) -5%
Prev. Close 180 Market Lot 2,500 Option Chain | Detailed View >>
4

News & Announcements

17-May-2024

Board of Bandhan Bank recommends Final Dividend

17-May-2024

Bandhan Bank standalone net profit declines 93.24% in the March 2024 quarter

16-May-2024

Bandhan Bank Ltd leads losers in 'A' group

15-May-2024

Bandhan Bank Ltd spurts 0.82%, rises for fifth straight session

17-May-2024

Board of Bandhan Bank recommends Final Dividend

11-May-2024

Bandhan Bank to discuss results

12-Apr-2024

Bandhan Bank allots 249 equity shares under ESOP

10-Apr-2024

Bandhan Bank appoints Head - Wholesale Banking

Corporate Actions

Bonus
Splits
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Capital Structure
Book Closure
Board Meeting
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EGM
 

Financials

Income Statement

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Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AU Small Finance Bank Ltd 540611 AUBANK
Axis Bank Ltd 532215 AXISBANK
Bank of Madura Ltd (Merged) 531966 BANKMADURA
Bank of Punjab Ltd(merged) 500070 BANKPUNJAB
Bank of Rajasthan Ltd(merged) 500019 BANKRAJAS
Capital Small Finance Bank Ltd 544120 CAPITALSFB
Centurion Bank of Punjab Ltd(merged) 532273 CENTBOP
City Union Bank Ltd 532210 CUB
CSB Bank Ltd 542867 CSBBANK
DCB Bank Ltd 532772 DCBBANK
Dhanlaxmi Bank Ltd 532180 DHANBANK
Equitas Small Finance Bank Ltd 543243 EQUITASBNK
ESAF Small Finance Bank Ltd 544020 ESAFSFB
Federal Bank Ltd 500469 FEDERALBNK
Fino Payments Bank Ltd 543386 FINOPB
Global Trust Bank Ltd (Merged) 500161 GLOBLTRUST
HDFC Bank Ltd 500180 HDFCBANK
ICICI Bank Ltd 532174 ICICIBANK
IDBI Bank Ltd(merged) 532235 IDBIBANK
IDBI Bank Ltd 500116 IDBI
IDFC First Bank Ltd 539437 IDFCFIRSTB
IndusInd Bank Ltd 532187 INDUSINDBK
ING Vysya Bank Ltd(Merged) 531807 INGVYSYABK
Jammu and Kashmir Bank Ltd 532209 J&KBANK
Jana Small Finance Bank Ltd 544118 JSFB
Karnataka Bank Ltd 532652 KTKBANK
Karur Vysya Bank Ltd 590003 KARURVYSYA
Kotak Mahindra Bank Ltd 500247 KOTAKBANK
Lakshmi Vilas Bank Ltd(Merged) 534690 LAKSHVILAS
Nedungadi Bank Ltd (Merged) 511264 NEDUNGBANK
RBL Bank Ltd 540065 RBLBANK
South Indian Bank Ltd 532218 SOUTHBANK
Standard Chartered PLC 580001 STAN
Suryoday Small Finance Bank Ltd 543279 SURYODAY
Tamilnad Mercantile Bank Ltd 543596 TMB
Times Bank Ltd (merged) 532252 TIMESBANK
Ujjivan Small Finance Bank Ltd 542904 UJJIVANSFB
United Western Bank Ltd(merged) 500430 UNIWESTBNK
Utkarsh Small Finance Bank Ltd 543942 UTKARSHBNK
Yes Bank Ltd 532648 YESBANK

Share Holding

Category No. of shares Percentage
Total Foreign 510678568 31.70
Total Institutions 200168962 12.43
Total Govt Holding 1142660 0.07
Total Non Promoter Corporate Holding 12143370 0.75
Total Promoters 644115857 39.98
Total Public & others 242720331 15.06
Total 1610969748 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Bandhan Bank Ltd

Bandhan Bank is a commercial bank focused on serving underbanked and underpenetrated markets in India. Bandhan Bank is the first instance in India of a microfinance entity transforming into a universal bank. The Bank a wide array of loans through Banking Unit (BU) outlets under Banking Units vertical to benefit small business owners in need of financial assistance. The Bank operates its Group Loans and Small Business & Agri Loans (SBAL) business channels from its BU outlets. In addition to the loan and deposit products, the bank also offers other banking products and services to generate non-interest income and cater towards the additional needs of its customers. These products and services include debit cards, Internet banking, mobile banking, EDC-POS terminals, online bill payment services and the distribution of third-party general insurance products and mutual fund products. Bandhan Konnagar was formed in 2001 as a non-governmental organisation ('NGO') providing microfinance services to socially and economically disadvantaged women in rural West Bengal. Bandhan Financial Services (BFSL) started its microfinance business in 2006 and the NGO transferred its microfinance business to BFSL in 2009 and thereby the entire microfinance business was undertaken by BFSL. By the time BFSL transferred its microfinance business to the bank, it was India's largest microfinance company by number of customers and size of loan portfolio. Bandhan Bank Limited was incorporated as on December 23, 2014 at Kolkata, West Bengal as a public limited company. A licence authorising the Bank to carry on banking business was issued by the RBI in terms of Section 22 of the Banking Regulation Act on June 17, 2015. The Bank began operations on August 23, 2015 when Bandhan Financial Services Limited ('BFSL'), its ultimate parent company, transferred its entire micro finance business to the bank and the bank simultaneously commenced general banking activities. To complement the micro loan business, since obtaining its banking license it has also focused particularly on creating a strong general banking business. To this end, it launched the general banking business on August 23, 2015 by opening a Greenfield network of 501 bank branches and 50 automated teller machines ('ATMs'). In 2016, Bandhan Bank expanded its branch and doorstep service centers (DSC) network to 656 branches and 2,022 DSCs. In 2017, the bank expanded its branch and DSC network to 840 branches and 2,546 DSCs. Bandhan Bank launched an initial public offer (IPO) during the period from 15 March 2018 to 19 March 2018. The IPO was a combination of fresh issue of 9.76 crore shares and an Offer for Sale of 2.16 crore shares from selling shareholders. The IPO was priced at Rs 375 per share. The stock debuted at Rs 485 on BSE on 27 March 2018, a premium of 29.33% over the IPO price. On 28 September 2018, Bandhan Bank informed the stock exchanges that since the bank was not able to bring down the shareholding of Non Operative Financial Holding Company (NOFHC) to 40 percent as required under the licensing condition, general permission to open new branches stands withdrawn and the bank can open branches with prior approval of RBI and the remuneration of the MD & CEO of the Bank stands frozen at the existing level, till further notice. Bandhan Bank said in a statement that it is taking necessary steps to comply with the licensing condition to bring down the shareholding of NOFHC in the Bank to 40 percent and shall continue to engage with RBI in this behalf. On 12 October 2018, Bandhan Bank informed the stock exchanges that the bank has received an exemption from the Securities and Exchange Board of India with respect to (i) lock-in of one year on the equity shares held by the promoter; and (ii) eligibility condition of one year from listing; as required under regulations 36(b) and 82(b) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2009, respectively, in order to comply with the requirements of RBI Licensing Guidelines for Private Sector Banks issued on February 22, 2013.During FY 2018-19, the Reserve Bank of India vide its letter dated September 19, 2018 has imposed two restrictions on the Bank, one is withdrawal of general permission to open new branches whereby the Bank is not permitted to open new branches without the prior approval of the RBI and the other is freezing of remuneration of the MD & CEO at the existing level due to non-compliance of one licensing condition of dilution of excess shareholding of Non-operative Financial Holding Company ('NOFHC') in the Bank to 40% of the paid-up capital of the Bank, within three years from the commencement of the operations of the Bank. The Bank has taken initiatives to comply with the only remaining licensing condition and in that regard amalgamation of GRUH Finance Limited into and with the Bank has been approved by the Board by which the existing shareholding of NOFHC in the Bank will be brought down to 61% (approx.). The Bank along with NOFHC has also initiated several other steps to comply with the only remaining licensing condition at the earliest. The Bank is constantly in touch with the RBI on the matter. During FY 2017-18, the Bank forayed into the gold loan business by commencing gold loan operations at 57 branches in eastern India. The number of these branches increased to 60 in the FY 2018-19. On March 31, 2019, the Bank's outstanding gold loan book stood at Rs 128.28 crore from 22,619 customers. During the year 2019, the Bank set up 50 new branches and 21 new ATMs. As on 31 March 2019, the Bank has 986 Branches, 3014 DSCs and 481 ATMs. During the FY2019, total deposits grew by 27.64% to Rs 43,231.62 crore, of which Rs 17,617.73 crore (40.75%) was Current Account and Savings Account (CASA') deposits. Bandhan Bank was declared as the winner in the Noteworthy Lender to the MSE - Private Sector Bank' category at the SIDBI ET MSE Awards 2018 held on January 2019. Bandhan Bank received the award in Best Performing Bank' in terms of Aadhaar generation and update (using online client) at the Aadhaar Excellence Awards in October 2018. The bank also won the Emerging Company of the Year' at The Economic Times Awards 2019 for Corporate Excellence. Also won Fastest Growing Company' and Excellence in Business Performance' at The Economic Times Bengal Corporate Awards 2020. The Bank has set up 32 new branches, 332 new Banking Units and 4 ATMs and as a result, the branch distribution network went up to 1,018 branches and 485 ATMs in FY 2019-20. With the expanding network of banking outlets and customers, the total deposits increased from Rs 43,231.62 crore as on 31 March 2019 to Rs 57,081.50 crore as on 31 March 2020 registering an increase of 32.04%. The outbreak of COVID-19 pandemic across the globe and in India has contributed to a significant decline and volatility in the global and Indian financial markets and slowdown in the economic activities. The RBI on March 27, 2020, April 17, 2020 and May 23, 2020, announced 'COVID-19 Regulatory Package' on asset classification and provisioning. In terms of these RBI guidelines, the lending institutions have been permitted to grant an effective moratorium of six months on payment of all instalments/ interest as applicable, falling due between March 1, 2020 and August 31, 2020 ('moratorium period'). As at 30 June 2020, the total number of Branches, Banking Units and ATM network stood at 1018, 3541 and 485 respectively. As at 30 September 2020, the total number of Branches, Banking Units and ATM network stood at 1045, 3656 and 487 respectively. As at 31 Decemeber 2020, the total number of Branches, Banking Units and ATM network stood at 1107, 4090 and 487 respectively. The bank's total banking outlets as on 31 March 2021 stood at 5310. The network consists of 1147 branches and 4163 banking units and the total number of ATMs stood at 487 across the country. During the FY'21, the Total Deposits increased by 36.6% to Rs 77,972.2 crore as on 31 March 2021. During the year 2021, the Bank opened 751 new banking outlets, with a focus on geographies outside of East and North-East. Out of the total 5,310 banking outlets, 34% were established in rural, 39% in semi-urban, 18% in urban and 9% in metro locations. It opened 618 new Banking Units (BUs) pan-India with a sole focus on financial inclusion. In FY'21, Bank launched its digital account opening journey - Neo+ Savings account, to digitize the liability onboarding process. It further launched three new Current Account products in FY 2021-22 namely Biz Deluxe Current Account, Biz PRO Current Account and Start-up Current Account. Apart from this, Gold Loan was strengthened as a product during the year. During the year 2022, Bank extended housing loan services to 25 additional centres, thereby expanding its presence to 356 centres across 20 states and two Union Territories. It focused on affordable home loans with the majority of loans being below Rs 20 lakh. It launched a special campaign for higher ticket size loans with rate of interest starting from 6.40%. It started a Direct Sales Agent (DSA) channel for sourcing home loans and distribution of Unit Linked Insurance Plan (ULIP) in FY 2021-22. During the FY'22, the Bank has added 329 new banking outlets. Out of the total 5,639 banking outlets, 35% are established in rural, 37% in semi-urban, 18% in urban and 10% in metro locations. During FY 2021-22, Bank opened 287 new BUs pan-India with a focus on financial inclusion and to enhance portfolio quality by limiting the number of customers served by a BU. A total of 42 branches were added during the FY'22, taking Bank's footmark to 1,189 branches. During FY 22-23, Bank opened 138 new BUs pan-India with a focus on financial inclusion and to enhance portfolio quality by limiting the number of customers served by a BU. A total of 222 branches were added during the FY'23, taking Bank's footmark to 1,411 branches. During the FY'23, the Bank has added 360 new banking outlets. Out of the total 5,999 banking outlets, 35% are established in rural, 37% in semi-urban, 18% in urban and 10% in metro locations.

Bandhan Bank Ltd Chairman Speech

"Against the backdrop of improved economic conditions, your Bank has demonstrated healthy growth in advances and deposits."

Dr. Anup Kumar Sinha

Non-Executive (Independent) Chairman

Dear Shareholders,

It is my distinct pleasure to present your Bank's Annual Report for the financial year ended on March 31, 2023. The Bank had set out on a transformation journey with the aim of delivering superior value and experience to customers in a rapidly evolving landscape. Underpinned by the outstanding efforts of its team members,

I am proud to say the Bank is succeeding on this agenda, having overcome the significant challenges thrown by the pandemic right at the outset of this journey.

Economic Review

Amid considerable uncertainties about economic activities in a large number of countries - including major economies such as the US, Euro Area and China - India has emerged as a shining beacon. With its 7.2% GDP growth in FY 22-23,

India had been the fastest growing large economy in the world last year, a distinction that India looks set to maintain even in the current year. The Indian government successfully met its FY 22-23 fiscal deficit target of 6.4% of GDP. Other noteworthy highlights of the fiscal performance include encouraging tax collections and a focus on capital expenditure. Although goods exports faced challenges due to the geopolitical situation and rising oil prices, the country's services exports performed exceptionally well.

The global repercussions of the war led to significant inflation and interest rate impact worldwide. In India, consumer prices surged to an eight-year high of 7.8% year-on-year in April 2022 and averaged 6.7% (YoY) during FY 22-23. The surge in inflation and monetary tightening across the globe prompted the Reserve

Bank of India (RBI) to raise its policy repo rate by 250 basis points during FY 22-23 to 6.5%, which has since been kept unchanged during the current financial year. Despite policy uncertainties in the global arena, India's macro parameters presently suggest that risks of further hike in interest rates in the near term is limited.

India has demonstrated prudent macroeconomic management by avoiding overstretching during the pandemic.

This approach has contributed to stable growth and effective inflation management. Furthermore, multidimensional policy initiatives over several years, such as supply-side policy reforms, boost in infrastructure, formalisation of the economy, Direct Benefit Transfer and the Insolvency and Bankruptcy Code, have enhanced competitiveness, promoted inclusion and propelled growth.

Sector Review

The sustained policy focus to strengthen the banking sector has yielded positive outcomes. Reforms implemented by the government and the RBI have also prompted greater focus on improving asset quality, with the gross nonperforming assets (GNPA) ratio reaching a ten-year low of 3.9% in March 2023.

Net non-performing asset also improved to 1% in March 2023, a level last seen in June 2011. Additionally, stress tests confirm that the banks are well- capitalised and capable of withstanding adverse macroeconomic conditions. The GNPA ratio is expected to further decline to 3.6% by March 2024.

Driven by the favourable market conditions and the efforts of the government and the RBI, banks reported healthy profits in the year in review. Among the various factors boosting banks' strong performance are the post-pandemic economic normalisation, recovery in credit demand, and a considerable improvement in asset quality. Credit growth stood at around 15% for the year, the highest growth in over a decade, driven by MSME credit (14% y/y), housing loans (15%) and personal loans (21%). Even though India's credit growth has been impressive, negative credit-to-GDP gap, as compared to advanced and emerging market peers, means that the banking sector needs to continue its efforts in reaching out to larger populations for the success of the Indian growth story.

The clean-up of bank balance sheets following the RBI's Asset Quality Review in 2016 has played a vital role in maintaining the banking sector's resilience despite the pandemic's impact. It has also facilitated credit expansion during the economic recovery. Notably, the banking sector achieved the lowest cost of provisioning in more than a decade during FY 22-23.

The Bank's Progress

Against the backdrop of improved economic conditions, your Bank has demonstrated healthy growth in advances and deposits. The retail segment, including housing and MSME loans, has been a significant contributor to credit uptake. Additionally, the Bank's asset

quality has improved significantly over the past year, while maintaining a healthy CASA ratio that provides a stable source of funds for lending activities, enhancing overall financial efficiency.

The growth witnessed in housing finance, commercial loans and retail loans verticals aligns with the Bank's portfolio diversification agenda. The Bank has also made substantial progress in its IT and digital transformation journey, which brings it closer to the vision of becoming a leading digital banking institution. This transformation will empower the Bank to expand its product offerings, extend its reach and deliver a frictionless banking experience.

During the year, the Bank crossed the significant milestone of three crore customers. This accomplishment stands as a testament to the trust diligently earned over the years and reinforces the Bank's unwavering commitment to upholding the highest standards of ethics and prioritising customer experiences.

Moving ahead, the Bank is actively expanding new capabilities such as Commercial Vehicle Lending, Loans against Property for Business and Government Business Operations. These strategic initiatives aim to create a greater business impact and enhance the range of services available to customers. Furthermore, the Bank is focussed on geographic diversification and expanding its market reach to connect with a broader customer base.

Changes to the Board

In the latter part of the year, the Bank welcomed Ratan Kumar Kesh as its first Executive Director on the Board. With nearly three decades of rich experience, Ratan brings valuable expertise in operations, including areas such as transformation, automation, customer experience and quality improvement. His proven leadership in handling complex functions will undoubtedly contribute to the continued growth and success of the Bank. We extend a warm welcome to Ratan and eagerly look forward to his contribution in taking the Bank to new heights.

The Road Ahead

India's economic landscape is showing signs of continued expansion, with inflationary pressures easing. The country's growth story is fuelled by strong domestic demand and a thriving services sector. The recent Consumer Confidence Survey conducted by the RBI reaffirms positive sentiments regarding the current and future economic conditions among Indian consumers.

Opportunities for growth are also stemming from government initiatives, including large investments in infrastructure projects, which not only pushes growth higher immediately but also boosts the long-term growth potential of the economy. Policies promoting domestic manufacturing, such as Production Linked Incentives (PLIs), are also expected to contribute to India's long-term economic growth.

For FY 23-24, India's real GDP growth is projected at around 6.5%. This healthy economic momentum and the improved resilience of the banking system provide foundation for a strong credit growth trajectory in the coming years. Risks to India's growth outlook include weak external demand, volatility in global financial markets, prolonged geopolitical tensions and the potential impact of El Nino on monsoon patterns.

In Conclusion

The Bank is poised to leverage upcoming opportunities and contribute to our nation's growth aspirations. The focus remains on driving inclusive banking and being a Bank for all, providing products and services that cater to changing customer needs, and building enduring relationships on the firm foundation of trust. By continuing on this path, the Bank is confident in its ability to generate value and pave the way for a better and stronger future for all stakeholders.

Warm regards,

Dr. Anup Kumar Sinha

Non-Executive (Independent) Chairman

Message from the MD & CEO

"The unwavering commitment to the Bank's vision has propelled it forward, enabling considerable progress in key areas such as information technology, digitalisation, and workforce development, among others areas of thrust."

Chandra Shekhar Ghosh

Managing Director & Chief Executive Officer

Dear Shareholders,

Allow me to start by highlighting one major milestone that your Bank crossed in the period under review - 3 crore customers. This achievement stands as a testament to the trust the Bank has diligently built over the years, fortifying its commitment to serving customers with integrity and reliability. In a short span of seven and a half years, your Bank has been able to place itself in the minds and hearts of its customers and all other stakeholders.

As I reflect on the past financial year,

I am encouraged by the performance delivered by the Bank. The Bank's nearterm vision includes its commitment to portfolio, geographic, people and tech transformations. The unwavering

commitment to the Bank's vision has propelled it forward, enabling considerable progress in key areas such as information technology, digitalisation, and workforce development, among other areas of thrust.

Operational Environment

Despite a challenging global geopolitical backdrop, the Indian economy experienced a robust revival during FY 22-23 as numerous businesses returned to normalcy, driven by a substantial increase in both business and consumer confidence. The Government's emphasis on enhancing infrastructure, promoting local manufacturing, and nurturing a digitally-empowered economy provided tailwinds to the growth trajectory.

Against this backdrop of improved economic conditions and positive consumer sentiments, there was a notable surge in credit demand, especially in the latter half of the year. The festive season brought additional joy, not only for the Bank and the financial services industry, but also for the entire economy, as festive spending was observed across all segments of society after nearly two years of subdued activity caused by the pandemic.

The floods in Assam as well as the high inflation experienced in the first half of the year, however, did pose some challenges. High inflation and rising interest rates in several other economies triggered sharp hike in interest rate by the Reserve Bank of India (RBI). Additionally,

the implementation of new regulatory norms in the first quarter necessitated the revision of risk assessment practices for microfinance disbursal, leading to muted growth in the microcredit segment during this period.

Performance Review

While the first quarter witnessed a subdued performance from the Bank, there was significant improvement from the second quarter. For the full year, the total advances for the Bank registered a growth of 10%, reaching ?1.09 lakh crore as of March 31, 2023.

In line with the portfolio diversification agenda of your Bank, there was significant progress made. The secured book as a proportion of the total loan book increased from 36% in FY 21-22 to around 43% in FY 22-23. The retail loan book, which includes personal loans, gold loans, two-wheeler loans and auto loans, witnessed a massive growth of 233% year-on-year, albeit on a relatively smaller base. Additionally, the Commercial Banking vertical, comprising the Financial Institution group (FIG), MMG, and BBG, recorded an encouraging growth of 72% year-on-year.

The Bank has experienced strong demand for housing loans. Till the end of Q3 FY 22-23, housing finance segment registered over 28% YoY growth. In the fourth quarter, the Bank moved the housing finance vertical to the new tech platform that caused a temporary slump resulting in a 13% YoY growth in the financial year. This disruption was a one-time event, and the Bank is now back on track in terms of its growth in housing loans.

The growth witnessed in the housing finance, commercial loans and retail verticals is a positive development, aligning with the Bank's portfolio diversification objectives. Around the

time when your Bank embarked on its portfolio diversification drive a little over three years ago, even before the onset of the pandemic, microfinance group loans accounted for nearly 60% of the overall loan book. As of the end of FY 22-23, this share has reduced to 35%, in line with your Bank's strategic pursuit. The proportion of loans under commercial banking has reached 18.5%. Additionally, other retail assets such as gold loans, personal loans, and two-wheeler and auto loans have seen their cumulative share increase from less than 1% to 5% during this period.

Your Bank's total deposits experienced a healthy growth of 12% year-on-year, outpacing industry growth, and reached ?1.08 lakh crore. It is noteworthy to mention that the contribution of MFI customers to the total deposit remains at a low 4.3%. Deposits are driven by trust, and this is another indication of the trust that your Bank has been able to garner from customers. The Bank's dedicated focus on deposit mobilisation has led to a 6% year-on-year growth in CASA deposits, which now stand at ?42,455 crore. The CASA ratio remains healthy at 39.3%. This growth in CASA deposits is primarily driven by a substantial 17.5% year-on-year increase in current account deposits.

The fourth quarter, the Bank moved the housing finance vertical to the new tech platform that caused a temporary slump resulting in a 13% YoY growth in the financial year. This disruption was a one-time event, and the Bank is now back on track in terms of its growth in housing loans.

With the restoration of people's livelihoods, the Bank has observed a strong inclination among customers to regularise their accounts, maintain a healthy credit record and ensure continued access to formal credit. In line with this, the Bank has achieved an overall collection efficiency (excluding NPA) of 98.5% in the month of March 2023. In the year in review, the Bank also received a sum of ?917 crore from the government as part of the Credit Guarantee Fund for Micro Units (CGFMU).

In FY 22-23, your Bank has achieved a net profit of ?2,195 crore, a significant increase from ?126 crore in the previous year. While operating profit witnessed a decline of 11.5% to ?7,091 crore, it was due to extensive hiring to support the growth aspirations, distribution expansion and investments in tech infrastructure.

Your Bank's efforts towards tightening underwriting standards and managing asset quality have yielded positive results. As of March 31, 2023, Gross NPA stood at 4.9%, showing a sharp improvement from 6.5% a year back. Furthermore, Net NPA stood at 1.2% as of March 31, 2023, compared to 1.7% in the same period of the previous year. These figures reflect the Bank's commitment to maintaining a healthy loan portfolio and managing credit risks effectively.

In terms of geographical diversification, the Bank has made continued progress in expanding beyond eastern India. Of late, customer base expanded rapidly in various relatively new geographies, with states like Uttar Pradesh and Bihar now featuring among our top three markets, along with West Bengal. While your Bank continues to maintain a strong presence in rural and semi-urban areas, it is also strengthening presence in metro and tier-1 cities to cater to a broader

customer base, in line with its agenda of being a bank for all. As of March 31, 2023, the Bank operates a total of 5,999 banking outlets, reflecting an increase of 360 banking outlets during FY 22-23.

IT & Digital Transformation

The Bank has made strong progress in its IT and digital transformation journey, driving it towards the goal of becoming one of the frontrunners in digital banking capabilities. A notable achievement is the growing adoption of digital channels by our non-micro credit customers, with 94% of their transactions now conducted through digital mediums, up from 90% in the previous year. Furthermore, the popularity of UPI transactions through Bandhan Bank has increased, with an impressive 53 crore transactions processed in the past year. This continued shift towards digital channels underscores the trust your Bank's customers place in its digital offerings and the Bank's steadfast commitment to delivering a frictionless banking experience.

In line with the rapid growth in digital adoption, your Bank's online channels have emerged as a key driver, accounting for 31% of retail deposits. As the Bank strives for digital excellence, it introduced the pilot phase of Neo+ Digital Savings Bank accounts. The Bank has also deployed 30,000 biometric-enabled tablets to streamline the account opening and customer onboarding procedures and strengthen last mile banking. This transformative initiative has resulted in substantial enhancements in operational efficiency and customer convenience.

As part of the comprehensive IT transformation strategy, your Bank has successfully migrated the Housing Finance portfolio to a new Core Banking System (CBS), integrating the Loan Origination System and Loan Management System. Building on this achievement, the Bank is now poised to embark on the migration

The Bank's focus on areas such as Commercial Vehicle Lending, Loans against Property for Business, and Government Business, among others, will contribute to the top line and bottom line, further strengthening your Bank's position in the industry.

... /

of our other business verticals to the advanced new CBS, in FY 23-24.

The new CBS will empower the Bank to introduce a range of new products with speed. These innovations will not only enhance the customer experience but also create additional avenues for customer engagement and deposit growth. These capabilities will help drive greater customer traction, resulting in more products per customer and higher life time value.

The Bank continues to prioritise the enhancement of its online presence and the delivery of exceptional digital banking experiences. Digital Banking solutions are in an everlasting state of evolution and in the coming financial year, your Bank will introduce omnichannel internet and mobile banking platforms. This strategic initiative reinforces the Bank's digital capabilities, allowing it to offer a seamless and integrated banking experience across various channels for its valued customers.

People Initiatives

Human capital is one of the most important assets for your Bank. The Bank has always placed significant emphasis on training. I am happy to tell you that over 99% of the Bank's employees received at least one training in the year in review. The training conducted through online,

app-based and classroom modules totalled 16 lakh man hours.

Performance Appraisals

Your Bank utilises a structured performance review process to identify talent for vacant roles and facilitate career progression. Additionally, an Internal Job Posting (IJP) mechanism enables employees to apply for open positions within the Bank. In the past year, 9,307 employees received grade promotions, while 5,690 employees were elevated to higher roles based on competency analysis. The Bank has also conducted thorough succession planning for key departments and is actively addressing identified gaps through internal hiring.

To keep pace with your Bank's rapid expansion plans, the Bank has increased manpower by 16% in the year under review. The Bank also focussed on getting on board young and diverse talent through campus hiring drives. The Bank hired a total of 1,102 employees across levels and locations through this drive. With the tech transformation currently underway, your Bank will activate stronger productivity enhancement tools and processes to help them discharge their duties even better.

Business Strategy & Outlook

Your Bank's business strategy is aligned with its vision of sustained growth with strategic diversification. India today stands at the cusp of an excellent growth phase, and the Bank is dedicated to partnering with the growth aspirations of our nation and its people. Our strong granular and retail deposit franchise is a testament of the trust shown by the customers in the bank.

While maintaining the Bank's strong presence in the East and Bharat

regions, it has been actively expanding its presence across the nation. Through targeted geographic diversification, deeper market penetration, localised hiring, and leveraging the Bandhan brand, the Bank aims to establish a dominant position in driving greater momentum and success.

To unlock significant business impact, the Bank is developing new capabilities and exploring diverse revenue streams. The Bank's focus on areas such as Commercial Vehicle Lending, Loans against Property for Business, and Government Business, among others, will contribute to the top line and bottom line, further strengthening your Bank's position in the industry.

Driving cross-sell and branch-led sales is a key priority for expanding the Bank's retail assets and liabilities portfolio.

The Bank is implementing multiple initiatives to maximise the potential of its branch network, enhancing employee productivity through the effective use of digital and data analytics.

Your Bank has achieved considerable success in moderating its credit cost and will continue to work towards getting it to pre-pandemic level of below 2%. We are confident that with the steps the Bank has taken so far and a strong future business outlook, we will continue to improve our profitability and deliver on the promises made to our shareholders.

Recognitions received

As a part of its people transformation agenda, your Bank has been working to increase employee engagement across levels. To measure the engagement, your Bank conducted the 'Bandhan Employee Engagement Study' in collaboration with Gallup, the global leader in employee engagement research. Over 35,000 employees took part in the survey. I

am happy to inform you that based on the engagement scores recorded in the survey, your Bank received the 'Gallup Exceptional Workplace Award 2023'. It is noteworthy that only 57 companies worldwide, spanning various sectors, were honoured with this award. That is not all, your Bank was also recognised as one of the World's Best Banks of 2023 by Forbes and Statista. This is a result of your trust in us.

I extend my heartfelt gratitude to all those who have played a part in your Bank's success. I would like to express my sincere appreciation to the Bank's customers, whose trust and loyalty have been instrumental in its journey. I also extend my gratitude to the shareholders for their unwavering support. Last but not least,

I want to acknowledge the exceptional dedication of the Bank's employees, whose commitment to serving customers is unparalleled.

Thank you all for your continued belief in Bandhan Bank as it steadfastly pursues its vision to become a world-class financial institution for all.

To unlock significant business impact, the Bank is developing new capabilities and exploring diverse revenue streams.

The Bank's focus on areas such as Commercial Vehicle Lending, Loans against Property for Business, and Government Business, among others, will contribute to the top line and bottom line, further strengthening your Bank's position in the industry.

Warm regards,

Chandra Shekhar Ghosh

Managing Director & Chief Executive Officer

   

Bandhan Bank Ltd Company History

Bandhan Bank is a commercial bank focused on serving underbanked and underpenetrated markets in India. Bandhan Bank is the first instance in India of a microfinance entity transforming into a universal bank. The Bank a wide array of loans through Banking Unit (BU) outlets under Banking Units vertical to benefit small business owners in need of financial assistance. The Bank operates its Group Loans and Small Business & Agri Loans (SBAL) business channels from its BU outlets. In addition to the loan and deposit products, the bank also offers other banking products and services to generate non-interest income and cater towards the additional needs of its customers. These products and services include debit cards, Internet banking, mobile banking, EDC-POS terminals, online bill payment services and the distribution of third-party general insurance products and mutual fund products. Bandhan Konnagar was formed in 2001 as a non-governmental organisation ('NGO') providing microfinance services to socially and economically disadvantaged women in rural West Bengal. Bandhan Financial Services (BFSL) started its microfinance business in 2006 and the NGO transferred its microfinance business to BFSL in 2009 and thereby the entire microfinance business was undertaken by BFSL. By the time BFSL transferred its microfinance business to the bank, it was India's largest microfinance company by number of customers and size of loan portfolio. Bandhan Bank Limited was incorporated as on December 23, 2014 at Kolkata, West Bengal as a public limited company. A licence authorising the Bank to carry on banking business was issued by the RBI in terms of Section 22 of the Banking Regulation Act on June 17, 2015. The Bank began operations on August 23, 2015 when Bandhan Financial Services Limited ('BFSL'), its ultimate parent company, transferred its entire micro finance business to the bank and the bank simultaneously commenced general banking activities. To complement the micro loan business, since obtaining its banking license it has also focused particularly on creating a strong general banking business. To this end, it launched the general banking business on August 23, 2015 by opening a Greenfield network of 501 bank branches and 50 automated teller machines ('ATMs'). In 2016, Bandhan Bank expanded its branch and doorstep service centers (DSC) network to 656 branches and 2,022 DSCs. In 2017, the bank expanded its branch and DSC network to 840 branches and 2,546 DSCs. Bandhan Bank launched an initial public offer (IPO) during the period from 15 March 2018 to 19 March 2018. The IPO was a combination of fresh issue of 9.76 crore shares and an Offer for Sale of 2.16 crore shares from selling shareholders. The IPO was priced at Rs 375 per share. The stock debuted at Rs 485 on BSE on 27 March 2018, a premium of 29.33% over the IPO price. On 28 September 2018, Bandhan Bank informed the stock exchanges that since the bank was not able to bring down the shareholding of Non Operative Financial Holding Company (NOFHC) to 40 percent as required under the licensing condition, general permission to open new branches stands withdrawn and the bank can open branches with prior approval of RBI and the remuneration of the MD & CEO of the Bank stands frozen at the existing level, till further notice. Bandhan Bank said in a statement that it is taking necessary steps to comply with the licensing condition to bring down the shareholding of NOFHC in the Bank to 40 percent and shall continue to engage with RBI in this behalf. On 12 October 2018, Bandhan Bank informed the stock exchanges that the bank has received an exemption from the Securities and Exchange Board of India with respect to (i) lock-in of one year on the equity shares held by the promoter; and (ii) eligibility condition of one year from listing; as required under regulations 36(b) and 82(b) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2009, respectively, in order to comply with the requirements of RBI Licensing Guidelines for Private Sector Banks issued on February 22, 2013.During FY 2018-19, the Reserve Bank of India vide its letter dated September 19, 2018 has imposed two restrictions on the Bank, one is withdrawal of general permission to open new branches whereby the Bank is not permitted to open new branches without the prior approval of the RBI and the other is freezing of remuneration of the MD & CEO at the existing level due to non-compliance of one licensing condition of dilution of excess shareholding of Non-operative Financial Holding Company ('NOFHC') in the Bank to 40% of the paid-up capital of the Bank, within three years from the commencement of the operations of the Bank. The Bank has taken initiatives to comply with the only remaining licensing condition and in that regard amalgamation of GRUH Finance Limited into and with the Bank has been approved by the Board by which the existing shareholding of NOFHC in the Bank will be brought down to 61% (approx.). The Bank along with NOFHC has also initiated several other steps to comply with the only remaining licensing condition at the earliest. The Bank is constantly in touch with the RBI on the matter. During FY 2017-18, the Bank forayed into the gold loan business by commencing gold loan operations at 57 branches in eastern India. The number of these branches increased to 60 in the FY 2018-19. On March 31, 2019, the Bank's outstanding gold loan book stood at Rs 128.28 crore from 22,619 customers. During the year 2019, the Bank set up 50 new branches and 21 new ATMs. As on 31 March 2019, the Bank has 986 Branches, 3014 DSCs and 481 ATMs. During the FY2019, total deposits grew by 27.64% to Rs 43,231.62 crore, of which Rs 17,617.73 crore (40.75%) was Current Account and Savings Account (CASA') deposits. Bandhan Bank was declared as the winner in the Noteworthy Lender to the MSE - Private Sector Bank' category at the SIDBI ET MSE Awards 2018 held on January 2019. Bandhan Bank received the award in Best Performing Bank' in terms of Aadhaar generation and update (using online client) at the Aadhaar Excellence Awards in October 2018. The bank also won the Emerging Company of the Year' at The Economic Times Awards 2019 for Corporate Excellence. Also won Fastest Growing Company' and Excellence in Business Performance' at The Economic Times Bengal Corporate Awards 2020. The Bank has set up 32 new branches, 332 new Banking Units and 4 ATMs and as a result, the branch distribution network went up to 1,018 branches and 485 ATMs in FY 2019-20. With the expanding network of banking outlets and customers, the total deposits increased from Rs 43,231.62 crore as on 31 March 2019 to Rs 57,081.50 crore as on 31 March 2020 registering an increase of 32.04%. The outbreak of COVID-19 pandemic across the globe and in India has contributed to a significant decline and volatility in the global and Indian financial markets and slowdown in the economic activities. The RBI on March 27, 2020, April 17, 2020 and May 23, 2020, announced 'COVID-19 Regulatory Package' on asset classification and provisioning. In terms of these RBI guidelines, the lending institutions have been permitted to grant an effective moratorium of six months on payment of all instalments/ interest as applicable, falling due between March 1, 2020 and August 31, 2020 ('moratorium period'). As at 30 June 2020, the total number of Branches, Banking Units and ATM network stood at 1018, 3541 and 485 respectively. As at 30 September 2020, the total number of Branches, Banking Units and ATM network stood at 1045, 3656 and 487 respectively. As at 31 Decemeber 2020, the total number of Branches, Banking Units and ATM network stood at 1107, 4090 and 487 respectively. The bank's total banking outlets as on 31 March 2021 stood at 5310. The network consists of 1147 branches and 4163 banking units and the total number of ATMs stood at 487 across the country. During the FY'21, the Total Deposits increased by 36.6% to Rs 77,972.2 crore as on 31 March 2021. During the year 2021, the Bank opened 751 new banking outlets, with a focus on geographies outside of East and North-East. Out of the total 5,310 banking outlets, 34% were established in rural, 39% in semi-urban, 18% in urban and 9% in metro locations. It opened 618 new Banking Units (BUs) pan-India with a sole focus on financial inclusion. In FY'21, Bank launched its digital account opening journey - Neo+ Savings account, to digitize the liability onboarding process. It further launched three new Current Account products in FY 2021-22 namely Biz Deluxe Current Account, Biz PRO Current Account and Start-up Current Account. Apart from this, Gold Loan was strengthened as a product during the year. During the year 2022, Bank extended housing loan services to 25 additional centres, thereby expanding its presence to 356 centres across 20 states and two Union Territories. It focused on affordable home loans with the majority of loans being below Rs 20 lakh. It launched a special campaign for higher ticket size loans with rate of interest starting from 6.40%. It started a Direct Sales Agent (DSA) channel for sourcing home loans and distribution of Unit Linked Insurance Plan (ULIP) in FY 2021-22. During the FY'22, the Bank has added 329 new banking outlets. Out of the total 5,639 banking outlets, 35% are established in rural, 37% in semi-urban, 18% in urban and 10% in metro locations. During FY 2021-22, Bank opened 287 new BUs pan-India with a focus on financial inclusion and to enhance portfolio quality by limiting the number of customers served by a BU. A total of 42 branches were added during the FY'22, taking Bank's footmark to 1,189 branches. During FY 22-23, Bank opened 138 new BUs pan-India with a focus on financial inclusion and to enhance portfolio quality by limiting the number of customers served by a BU. A total of 222 branches were added during the FY'23, taking Bank's footmark to 1,411 branches. During the FY'23, the Bank has added 360 new banking outlets. Out of the total 5,999 banking outlets, 35% are established in rural, 37% in semi-urban, 18% in urban and 10% in metro locations.

Bandhan Bank Ltd Directors Reports

Bandhan Bank Ltd Company Background

Anup Kumar SinhaChandra Shekhar Ghosh
Incorporation Year2014
Registered OfficeDN 32 Sector V,Salt Lake
Kolkata,West Bengal-700091
Telephone91-33-66090909,Managing Director
Fax91-33-66090502
Company SecretaryIndranil Banerjee
AuditorM M Nissim & Co LLP
Face Value10
Market Lot1
ListingBSE,NSE,
RegistrarKFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Bandhan Bank Ltd Company Management

Director NameDirector DesignationYear
Ashok Kumar LahiriPart Time Chairman2017
Chandra Shekhar GhoshManaging Director & CEO2023
Holger Dirk MichaelisNominee2023
Indranil BanerjeeCompany Sec. & Compli. Officer2023
ALLAMRAJU SUBRAMANYA RAMASASTRINon-Exec. & Independent Dir.2023
Santanu MukherjeeNon-Exec. & Independent Dir.2023
Anup Kumar SinhaChairman & Independent Directo2023
NVP TendulkarNon-Exec. & Independent Dir.2023
Vijay N BhattNon-Exec. & Independent Dir.2023
Suhail ChanderNon-Exec. & Independent Dir.2023
Subrata Dutta GuptaIndependent Director2023
Ms Divya KrishnanNon-Exec & Non-Independent Dir2023
Aparajita MitraNon-Exec. & Independent Dir.2023
Philip MathewNon-Exec. & Independent Dir.2023
Ratan Kumar KeshExecutive Director2023

Bandhan Bank Ltd Listing Information

Listing Information
BSE_500
BSE_200
BSEDOLLEX
CNX500
BANKNIFTY
CNXMIDCAP
CNXMID50
CNX200
BSEALLCAP
BSELARGECA
BSEFINANCE
NFTMIDLQ15
NFTPVTBANK
MID150
LMI250
MSL400
BSEEVI
BSEDFINRVG
BSEPVTBNK
NFTYLM250
NFTYMC150
NFTYMSC400
NF500M5025
NFTYTOTMKT

Bandhan Bank Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/discount on adv billsRs.00012183.896
Income on InvestmentsRs.0001478.3033
Interest on balance with RBIRs.000140.5144
OthersNA00068.4065

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