Any current/future capex/capital investment/strategic investment?

The bank has recently completed a significant technology transformation by migrating to a new core banking system (Oracle's FLEXCUBE), marking the first phase of its tech transformation journey. Alongside the CBS migration, they have launched new Internet banking platforms and a mobile banking app (mBandhan) with improved user experience and functionality. Sunil Samdani mentioned ongoing investments in retail and commercial segments, including hiring quality talent to support growth. IT transformation and new branch addition costs, which were substantial previously, are expected to taper down

Future growth expectations in sales/revenue/volumes?

Housing book shows steady recovery with disbursals increasing from INR 200 crores to INR 550 crores per month; stronger growth expected in next quarters. Overall loan book growth target of ~20% YoY for FY24, with stronger momentum expected in H2 with festive season demand. Retail loan book grew 80% YoY and commercial banking 65% YoY; emphasis on increasing secured assets to 50% of portfolio by FY26. Savings deposits growing steadily with improved savings bank rates aiding increased balances and customer acquisition. Digital banking transactions up significantly (95% GB transactions dig

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

The bank expects steady recovery and stronger growth in the housing loan book in upcoming quarters, driven by rising disbursals and improved business productivity. Credit growth guidance remains robust with an anticipated 20% year-on-year loan book growth by FY24 end, supported by strong demand and portfolio expansion. Net Interest Margin (NIM) is expected to remain in the guided range of 7% to 7.5%, with improvements seen in Q2 and September 2023. Operating expenses are guided to stabilize at a 3.5% expense-to-asset ratio in FY24, with a 10 basis points improvement expected in FY25. C

Bandhan Bank LtdQ2 FY24Banks

Bandhan Bank Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹176P/E: 22.4Market Cap: ₹30.2K CrSector: Banks

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

Housing book shows steady recovery with disbursals increasing from INR 200 crores to INR 550 crores per month; stronger growth expected in next quarters.
Overall loan book growth target of ~20% YoY for FY24, with stronger momentum expected in H2 with festive season demand.
Retail loan book grew 80% YoY and commercial banking 65% YoY; emphasis on increasing secured assets to 50% of portfolio by FY26.
Savings deposits growing steadily with improved savings bank rates aiding increased balances and customer acquisition.
Digital banking transactions up significantly (95% GB transactions digital, 57% YoY rise in monthly active users).
Business rebalancing toward retail and commercial verticals expected to drive higher growth volumes, aided by tech transformation and branch expansion.
Management confident of meeting medium-term strategic goals and higher productivity leading to sustainable growth.

Margin guidance

Category 3

The bank expects steady recovery and stronger growth in the housing loan book in upcoming quarters, driven by rising disbursals and improved business productivity.
Credit growth guidance remains robust with an anticipated 20% year-on-year loan book growth by FY24 end, supported by strong demand and portfolio expansion.
Net Interest Margin (NIM) is expected to remain in the guided range of 7% to 7.5%, with improvements seen in Q2 and September 2023.
Operating expenses are guided to stabilize at a 3.5% expense-to-asset ratio in FY24, with a 10 basis points improvement expected in FY25.
Credit cost is targeted around 2% plus/minus 20 basis points by FY24 end.
Profit growth is strong, with Q2 FY24 net profit up 245% YoY; further improvements anticipated as the second half of the year is seasonally stronger for business growth and credit demand.
Recoveries, especially from ARC pools, are expected to positively impact profitability in the coming quarters.

See what Bandhan Bank Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

There is no explicit mention in the provided transcript regarding current or future fundraising plans through debt or equity. However, some relevant points include: - The bank is managing expenses with a guided operating expense ratio of 3.5% for FY24, with a slight improvement expected in FY25. - Incremental costs related to IT transformation and new branch additions are tapering down. - There is an ongoing focus on balance sheet growth, deposit mobilization, and credit growth of nearly 20% YoY. - No direct disclosure or discussion on fresh capital raising—equity or debt—is mentioned in the available excerpts. Therefore, based on the transcript, Bandhan Bank has not communicated any plans for fundraising through debt or equity in the near term.

Order book

Yes

The transcript does not specifically mention the current or expected order book or pending orders for Bandhan Bank. However, related insights include: - The housing loan book growth has been slow for 3-4 quarters but is showing steady recovery. - Disbursement run rate for the housing book has increased significantly from INR 200 crores/month to INR 550 crores/month. - The management expects stronger growth in housing loans in upcoming quarters due to improved business productivity and underlying demand. - Overall loan book grew 12.3% YoY and 4.3% QoQ in Q2FY24, reflecting an uptick in demand across asset verticals. - The bank added approximately 6 lakh new borrowers in the Enterprise and Emerging Businesses (EEB) segment during Q2FY24. - Credit growth guidance for FY24 stands around 20% YoY. No explicit order book or pending order figures are given in the transcript.

See what Bandhan Bank Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

The bank has recently completed a significant technology transformation by migrating to a new core banking system (Oracle's FLEXCUBE), marking the first phase of its tech transformation journey.
Alongside the CBS migration, they have launched new Internet banking platforms and a mobile banking app (mBandhan) with improved user experience and functionality.
Sunil Samdani mentioned ongoing investments in retail and commercial segments, including hiring quality talent to support growth.
IT transformation and new branch addition costs, which were substantial previously, are expected to taper down as the bulk of these costs have been incurred already.
The bank plans to add 100 to 120 new branches per year over the near term.
Overall operating expense to assets ratio is guided at 3.5%, with cost efficiencies expected going forward.

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