Any current/future new fundraising through debt or equity?

Bandhan Bank is **not looking at any near-term capital raise** as of the latest update. Despite a decrease in Tier-1 capital and higher unsecured book compared to peers, management feels **comfortable with current capital levels** and has no immediate plans for equity or debt fundraising. The Bank remains **well capitalized** with a Capital to Risk-weighted Assets Ratio (CRAR) of 15% (excluding current quarter profit) and 15.7% (including profit), providing sufficient headroom to support growth. Management will continue to **monitor capital on an ongoing basis** and may consider future actions

Future growth expectations in sales/revenue/volumes?

Bandhan Bank expects continued momentum in business growth across all verticals for the rest of FY25. Gross advances grew 22% YoY in Q1 FY25; full-year loan book growth guidance remains at 18-20%. Focus on growing secured assets like housing, secured commercial banking, and secured retail products. EEB portfolio growth to continue but at a lower rate compared to secured assets. Total deposits grew 23% YoY, higher than advances growth; retail deposits (CASA + retail TD) grew 19% YoY, term deposits up 25%. Strategic priorities include geographic diversification and product diversification with n

Future growth expectations in earnings/operating earnings/profits/EPS?

Bandhan Bank reported a 47% year-on-year growth in profit after tax for Q1FY25, reaching Rs. 1,063 crores, with return on assets at 2.5% and return on equity at 18.8% (annualized). Advances grew 22% year-on-year, supported by diversified growth across business verticals including a strong focus on secured assets like housing and commercial banking. Deposit growth was higher than advances at 23% year-on-year, maintaining a stable retail deposit ratio (~69%). The Bank expects loan book growth of 18-20% and higher deposit growth, focusing on product and geographic diversification. Net int

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Bandhan Bank LtdQ2 FY24Banks

Bandhan Bank Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹202P/E: 25.6Market Cap: ₹31.3K CrSector: Banks

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

Capex

Yes

1 of 5 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Bandhan Bank expects continued momentum in business growth across all verticals for the rest of FY25.
→Gross advances grew 22% YoY in Q1 FY25; full-year loan book growth guidance remains at 18-20%.
→Focus on growing secured assets like housing, secured commercial banking, and secured retail products.
→EEB portfolio growth to continue but at a lower rate compared to secured assets.
→Total deposits grew 23% YoY, higher than advances growth; retail deposits (CASA + retail TD) grew 19% YoY, term deposits up 25%.
→Strategic priorities include geographic diversification and product diversification with new offerings (LCs, Forex, bank guarantees, Bharat QR).
→Digital banking penetration and data analytics initiatives are expected to enhance customer acquisition and CASA ratios.
→Operating profit grew 24% YoY in Q1; net profit grew 47% YoY, indicating robust profitability to support growth.
→Capital position remains strong (CRAR ~15.7%), supporting sustainable growth plans.

Margin guidance

Category 3

→Bandhan Bank reported a 47% year-on-year growth in profit after tax for Q1FY25, reaching Rs. 1,063 crores, with return on assets at 2.5% and return on equity at 18.8% (annualized).
→Advances grew 22% year-on-year, supported by diversified growth across business verticals including a strong focus on secured assets like housing and commercial banking.
→Deposit growth was higher than advances at 23% year-on-year, maintaining a stable retail deposit ratio (~69%).
→The Bank expects loan book growth of 18-20% and higher deposit growth, focusing on product and geographic diversification.
→Net interest margin guidance remains stable around 7% to 7.5%.
→Non-interest income including steady releases from provision on security receipts (Rs. 60-70 crores quarterly) provides consistent support.
→Operating expenses are being controlled and investments continue, supporting profitable growth.
→Capital adequacy remains strong (CRAR ~15.7% including Q1 profit), supporting future growth without the immediate need for capital raise.
→Overall, the Bank expects continued momentum in earnings driven by growth, stable margins, improving asset quality, and controlled credit costs.

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Fundraise plans

→Bandhan Bank is **not looking at any near-term capital raise** as of the latest update.
→Despite a decrease in Tier-1 capital and higher unsecured book compared to peers, management feels **comfortable with current capital levels** and has no immediate plans for equity or debt fundraising.
→The Bank remains **well capitalized** with a Capital to Risk-weighted Assets Ratio (CRAR) of 15% (excluding current quarter profit) and 15.7% (including profit), providing sufficient headroom to support growth.
→Management will continue to **monitor capital on an ongoing basis** and may consider future actions if needed, but no specific plans have been disclosed.
→Discussions with regulators on capital and risk-weight matters are part of routine interactions but have not led to decisions on raising capital yet.

Order book

The transcript from Bandhan Bank's Q1 FY25 Earnings Call does not provide any information regarding current or expected order book or pending orders. The discussion primarily revolves around: - Financial performance, including advances, deposits, and profit growth. - Risk weight increase for the EEB portfolio. - Capital adequacy and stress testing. - Digital initiatives and geographic diversification. - Asset quality and credit cost outlook. - Branch expansion and hiring trends. - CEO succession progress. No details related to order book or pending orders are mentioned in the provided pages.

Capex plans

Yes

- Bandhan Bank is continuing to invest in people, technology, and building key capabilities to drive strategic growth. - Investments have been made over the past quarters in IT upgrades, digital channels, and branch re-energizing. - The focus is on digitization and technology upgrades, which will impact future hiring and operational expansion. - Capital position remains well-capitalized with a CRAR of 15% (15.7% including Q1 profit), sufficient to support future growth plans. - No immediate plans for capital raise; capital levels will be monitored continuously to support asset growth. - Strategic investments include product diversification, geographic expansion, and digital banking penetration to enhance customer experience and growth. - The bank aims for a calibrated and conservative approach, especially in risk-weighted assets and maintaining capital adequacy. Overall, the bank prioritizes strategic investments in digitalization and growth while maintaining a strong capital base without near-term capital raising.

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