Bandhan Bank - Strategy Is To Diversify Credit Book: Nirmal Bang

Nirmal Bang Report

We attended the Bandhan Bank Ltd.’s analyst day 2022, wherein the bank demonstrated its various initiatives and progress across business verticals on assets, liabilities and asset quality segments.

The management discussed on the strategic priorities of the banks in terms of portfolio diversification, geographical diversification and focus on granular deposits.

Management expects diversification of credit book to be in favour of non-micro finance institution segments going forward and credit mix to be even by FY2025E driven by higher growth in non-MFI loan book.

The focus would remain on granular deposits and expects composition of retail deposits to increase to around 80% by FY25E versus 74% as on 1=H1 FY23.

On asset quality front, the management expects overall slippages to normalise and expects to achieve steady state credit cost of ~1.8% from FY24E onwards.

We believe, Bandhan Bank is in right direction to diversify its credit book driven by new segment introduction as well as expanding to new geographies going forward.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.