Bandhan Bank Q4 Concall Summary
- Expecting INR 60-80 crore from ARC (Asset Reconstruction Company) this year, which they sold last year.
- Targeting 1.8% credit cost.
- Targeting 18% growth in the overall loan book (14% for Emerging Entrepreneurs Portfolio (EEP)).
- Targeting 5% Gross Non-Performing Assets (GNPA) for EEP.
- Confident about EEP.
- Current Net Interest Margin (NIM) of 7.3% will face some pressure as they diversify.
- Targeting 3% slippage ratio.
- Operating cost is high for this fiscal year and will remain the same in the next fiscal year.
- Expecting INR 1,200 crore recovery from audits (CGFMU).
- Targeting 2.5% Net Non-Performing Assets (NNPA).
- The portfolios written off are from the years 2019-20 and 2020-21 (pre-pandemic period).
- The search for a new CEO is ongoing.
- Expecting recoveries from written-off loans as frontline staff may not be aware that these accounts have been written off.
- Individual EEP loan size is INR 1.5 lakh (50 basis points lower interest rate compared to Group EEP).
Disclosure – Not invested, worried about the asset quality as management is always optimistic and as the company is looking for a new CEO.”
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