The Company’s Q3 (OCT to DEC ’18) net profit up 10.3% at INR 331 Cr after prudently providing fully INR 384.95 Cr on one large Infrastructure company;

The Company’s NII grew by 53.5% at INR 1,124 Cr while CASA ratio stood at 41.4%

The stock touched an intraday high of INR 474.80 and an intraday low of INR 451.10 on the National Stock Exchange (NSE)

Key Highlights:

• Loan Portfolio: Bandhan Bank’s loan portfolio (on book + off book) grew 46.1% YoY at INR 35,599 Cr
• Deposit portfolio of the company grew 36.9% YoY at INR 34,639 Cr
• Net NPA stood at 0.7%
• Retail Deposit to Total Deposit at 84.8%, CASA grew 70.7% YoY at INR 14,342 Cr; CASA ratio stood at 41.4%
• Client: The Company Added 9.22 lakh Customer during the quarter with total customer base reaching to 15.33 million (Micro Banking – 12.15 million and Non Micro – 3.18 million)
• During the nine months period ended December 2018, out of INR 275.8 Cr of PSLC income, INR 203.5 Cr has been recognized during December 2018 of which INR 73.28 Cr has been recognized during
  Q3FY19
• During the quarter we have written back treasury investment provision of INR 95.50 Cr on account of favorable yield curve movement in AFS and HFT portfolio
• Provision of INR 384.95 Cr made in respect of an exposure to a borrower from Infrastructure development & finance sector; which was classified as non-performing asset and fully provided for during the quarter

CEO Speak:

Commenting on the performance, Mr. Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said: “Our core business of Microbanking and Deposits – particularly retail including CASA has continued its strong performance in Q3FY19.

With the announcement of the merger with the Gruh Finance, we are excited and confident to accelerate this growth in affordable housing segment.”

Bandhan Bank – Company Profile

Incorporated on 23rd December 2014, Bandhan Bank Limited is Kolkata, West Bengal based commercial bank focused on (1) Micro Banking and (2) General Banking Services.

History – Bandhan started in 2001 as a not-for-profit enterprise that stood for stood for financial inclusion and women empowerment through sustainable livelihood creation. lt 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.

Business – Bandhan Bank is driven by a constant desire to serve better. lt offers world-class banking products and services to urban, semi-urban 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 3,992 banking outlets serving 1.53 crore customers, as on December 31, 2018.

Network – Total Banking outlets as on December 31, 2018, stood at 3992. The network consists of 978 branches and 3,014 doorstep service centers. Total number of ATMs stood at 480 as on December 18. The number of employees of the bank has gone up to 31,115.

Stock Price Movement

The stock ended 3.55% higher to INR 471.55 (NSE) when the market closed! The share price of Bandhan bank traded almost flat during the quarter ended 31 December 2018.

Bajaj Corp on Technical Charts

The stock price of Bandhan Bank Limited is trading almost 7% lower when compared to its 50 EMA (INR 504) and trading more than 9% lower when compared to its 200 EMA (INR 518)

Also Read –

Value Pick Stock of the Month – Vadilal Industries Limited

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Bandhan Bank: Q3 FY 2018-19 Key Highlights appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Bandhan Bank – Company Profile

• Incorporated on 23rd December 2014, Bandhan Bank Limited is Kolkata, West Bengal based commercial bank focused on (1) Micro Banking and (2) General Banking Services.
• The company currently offers a variety of asset and liability products and services designed for micro and general banking, as well as other banking products and services to generate non-interest income.
• The company has a banking license that permits it to provide banking services pan-India across customer segments.

Bandhan Bank – Product Portfolio

The bank’s product portfolio mainly covers 4 items, viz –

• ACCOUNTS – (1) Savings Accounts, and (2) Current Accounts
• LOANS – (1) Retail Loans, (2) MSME Loans, (3) Small Enterprise Loans, (4) Microloans, and (5) Agri Loans
• DEPOSTS
• NRI BANKING – (1) Deposit, and (2) Remittance

Current Network

• Bandhan Bank is driven by a constant desire to serve better. Bandhan Bank started with 501 branches, 50 ATMs, and 2022 Door step Services Centres (DCSs) on day one.
• Presently, Bandhan Bank has 3799 touch points pan India consisting of 893 bank branches, 2696 Door step Services Centres (DCSs), and 433 ATMs and serving more than 12 million customers.

Employees and Distribution Network

• Bandhan Bank has a team of nearly 27,300 employees on roll.
• The Bank’s distribution network is strong in East and Northeast India, with West Bengal, Assam and Bihar.

Company Promoters

The Promoters of the Bank are –

• Bandhan Financial Services Private Limited (BFSL) is a non-banking financial institution for purposes of carrying out non-banking financial activities without accepting public deposits.
• BFSL was accorded in-principle approval by the RBI on April 9, 2014 for setting up a bank in the private sector. The promoter of Bandhan Financial Holdings Limited (BFHL) is BFSL.
• Financial Inclusion Trust (FIT) is an irrevocable charitable trust with objectives including inter alia eliminating functional illiteracy in India by making education economically relevant.
• North East Financial Inclusion Trust (NEFIT) is an irrevocable charitable trust with objectives including inter alia eliminating illiteracy in India by making education available to the underprivileged.

IPO Opening / Closing Date

IPO Details – Price, Minimum Bid and Other

Financial Performance

Revenues

Bandhan Bank shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 3 years and jumped from INR 7.95 Cr in FY 2015 to INR 4320 Cr for the period ended FY 2017.

Profits

Though the company has shown steady growth in revenue, the company has also registered growth in profits in these 3 years. Starting from INR 0.6 Cr of profits in FY2015, the company’s earnings improved to INR 1112 Cr for the period ended FY 2017.

CONCLUSION –
Considering company’s valuation, financial parameters, and the sector potential in which it is operating, FinBlab recommends SUBSCRIBE ratings on Bandhan Bank IPO.

Also Read –

(1) Detail Analysis and Finblab View on up-coming BHARAT DYNAMICS LIMITED IPO

(2) Finblab’s Valuepick of the month BALKRISHNA INDUSTRIES LIMITED

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Bandhan Bank Limited IPO – Details, Price Band, Analysis appeared first on Upcoming ipos: Latest news on stocks, economy & finance.