Bandhan Bank gains after Q1 business update

Bandhan Bank rose 2.82% to Rs 367 on reporting strong growth in advances and deposits in Q1 June 2020.

The private lender's loans & advances (on book+off book+TLTRO investments) jumped 18% year-on-year to Rs 74,325 crore (merged) in Q1 June 2020 as against Rs 63,164 crore in Q1 June 2019.

Total deposits rose 35% to Rs 60,602 in Q1 June 2020 from Rs 44,796 crore in Q1 June 2018. Retail to total deposits were flat at 78% in Q1 June 2020 over Q1 June 2019.

CASA deposits were reported at Rs 22,473 crore during the quarter, rising 47% from Rs 15,257 crore in the corresponding quarter last year. CASA ratio improved to 37.1% in Q1 June 2020 from 34.1% in the same quarter last year.

 

Bandhan Bank further added that subsequent to unlock 1, the collection in micro-banking loan vertical has shown positive traction from 1 June 2020. The bank reported a steady improvement in collection efficiency (in value terms) during the month of June 2020 and ended with approximately 68% as on last day of the month. This number has further improved to 70% (resulting in effective moratorium of about 30%) as on 3 July 2020. About 70% of customers have started repaying their loans.

For non-micro banking advances, collection efficiency for the month of June 2020 stands at about 84% (resulting in effective moratorium of about 16%).

Bandhan Bank's liquidity coverage ratio (LCR) as of 30 June 2020 stood at about 159%.

Bandhan Bank operates as a commercial bank. The bank provides accounts checking, savings deposits, money market, mortgage, and term loans services, as well as card facilities and internet banking services

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