Bandhan Bank has provided a robust business update in Q4: Key highlights

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Bandhan Bank Q4 Updates

Bandhan Bank on Tuesday updated the exchange about its business for the Q4FY22. Let us look at the numbers.

Loans and advances - The private lender reported loans and advances at Rs 1.01 lakh crore, up 15% QoQ and 16% YoY. For the December quarter, the loans and advances were Rs 87,998 crore and for Q4FY21, it was Rs 87,043 crore.

CASA - Current Account Savings Account deposits increased to Rs 40,072 crore, up 18% YoY. The retail deposits were 77% of the total deposits. The total deposits increased 24% year-on-year to Rs 96,331 crore at the end of the last quarter of 2021-22.

CER - Collection Efficiency Ratio (CER) of Bandhan Bank stood at 96% at the end of FY22, against 93% in the preceding third quarter. CER of the micro-credit vertical increased 95% in Q4FY22, up from 91% in the third quarter of last fiscal.

Update on Bandhan Group acquisition of IDFC MF business

  • Last year, the board of directors of IDFC Limited and IDFC Financial Holding Company Limited gave the nod to kick-start the divestment process for IDFC MF.
  • The bid boiled down to a two-horse race between a Bandhan Group-led consortium and a combine led by Invesco MF for the asset.
  • As per the latest reports, the promoter of Bandhan Bank is in the pole position to win the bid for IDFC's mutual fund business in a deal valued at about Rs 4,500 crore.

Brokerage Radar:

Brokerage firm Jefferies has maintained a ‘Buy’ call with a target price of Rs 380. As per Jefferies, the bank reported healthy asset growth at 16% YoY/ 15% QoQ, may see negative net slippages in Q4. Sufficient provision buffers should keep credit costs low. CASA ratio should normalize in Q1 FY23.

Bandhan Bank was trading at Rs 312.70 per share, down 0.85% on Wednesday afternoon.