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Bandhan Bank

Profit Statement 2016 2017 2018
Net Interest Income INR bil 24.0 30.3 45.0
Net Fee Income INR bil 3.20 4.05 5.99
Other Income INR bil 0.910 3.02 4.64
Total Revenues INR bil 28.1 37.4 55.6
Operating Profit INR bil 17.8 23.9 37.7
Provisions INR bil 0.802 3.33 7.60
Net Profit INR bil 11.1 13.5 19.5
Balance Sheet 2016 2017 2018
Interbank Loans INR bil 13.5 26.7 19.2
Customer Loans INR bil 168 297 396
Total Assets INR bil 302 443 564
Shareholders' Equity INR bil 44.5 93.8 112
Interbank Borrowing INR bil 0.249 0.453 0.974
Customer Deposits INR bil 232 339 432
Issued Debt Securities INR bil 10.3 2.85 5.21
Ratios 2016 2017 2018
ROE % 28.6 19.5 19.0
ROA % 4.45 3.61 3.87
Costs (As % Of Assets) % 4.12 3.62 3.55
Costs (As % Of Income) % 36.6 36.1 32.1
Capital Adequacy Ratio % 26.4 31.5 ...
Net Interest Margin % 9.62 8.14 8.93
Loans (As % Of Deposits) % 72.5 87.7 91.7
NPLs (As % Of Loans) % 0.512 1.25 2.04
Provisions (As % Of NPLs) % 29.1 53.7 72.1
Valuation 2016 2017 2018
Price/Earnings (P/E) ... 41.6 32.2
Price/Book Value (P/BV) ... 5.96 5.61
Dividend Yield % ... 0.213 0.570
Earnings Per Share (EPS) INR 10.2 12.3 16.3
Book Value Per Share INR 40.6 85.5 93.8
Dividend Per Share INR 0 1.09 3.00

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summary Unit 2014 2015 2016 2017 2018
income statement          
Net Interest Income INR bil ... 9.33 24.0    
Total Revenues INR bil ... 10.8 28.1    
Operating Profit INR bil ... 4.67 17.8    
Net Profit INR bil ... 2.75 11.1    
balance sheet          
Interbank Loans INR bil 4.01 23.6 13.5    
Customer Loans INR bil 0 124 168    
Debt Securities INR bil 0 37.6 55.2    
Total Assets INR bil 5.27 198 302    
Shareholders' Equity INR bil 5.02 33.3 44.5    
Interbank Borrowing INR bil 0 0.098 0.249    
Customer Deposits INR bil 0 121 232    
Issued Debt Securities INR bil 0 30.5 10.3    
ratios          
ROE % ... 14.4 28.6    
ROA % ... 2.71 4.45    
Costs (As % Of Assets) % ... 6.07 4.12    
Costs (As % Of Income) % ... 56.9 36.6    
Capital Adequacy Ratio % ... 29.0 26.4   ...
Net Interest Margin % ... 9.20 9.62    
Interest Income (As % Of Revenues) % ... 86.2 85.4    
Fee Income (As % Of Revenues) % ... 13.4 11.4    
Equity (As % Of Assets) % 95.2 16.9 14.7    
Loans (As % Of Deposits) % ... 103 72.5    
Loans (As % Assets) % 0 63.0 55.7    
NPLs (As % Of Loans) % ... 0.151 0.512    
Provisions (As % Of NPLs) % ... 45.5 29.1    
valuation          
Market Capitalisation (End Of Period) USD mil ... ... ...    
Number Of Shares (Average) mil ... 809 1,095    
Share Price (End Of Period) INR ... ... ...    
Earnings Per Share (EPS) INR ... 3.40 10.2    
Book Value Per Share INR ... 41.2 40.6    
Dividend Per Share INR ... 0 0    
Price/Earnings (P/E) ... ... ...    
Price/Book Value (P/BV) ... ... ...    
Dividend Yield % ... ... ...    
Earnings Per Share Growth % ... ... 198    
Book Value Per Share Growth % ... ... -1.54    
income statement Unit 2014 2015 2016 2017 2018
income statement          
Interest Income INR bil ... 15.8 39.1    
Interest Cost INR bil ... 6.49 15.1    
Net Interest Income INR bil ... 9.33 24.0    
Net Fee Income INR bil ... 1.45 3.20    
Other Income INR bil ... 0.045 0.910    
Total Revenues INR bil ... 10.8 28.1    
Operating Cost INR bil ... 6.16 10.3    
Operating Profit INR bil ... 4.67 17.8    
Provisions INR bil ... 0.533 0.802    
Extra and Other Cost INR bil ... 0 0    
Pre-Tax Profit INR bil ... 4.14 17.0    
Tax INR bil ... 1.38 5.93    
Minorities INR bil ... 0 0    
Net Profit INR bil ... 2.75 11.1    
Dividends INR bil ... 0 0    
growth rates          
Net Interest Income Growth % ... ... 158    
Net Fee Income Growth % ... ... 120    
Total Revenue Growth % ... ... 160    
Operating Cost Growth % ... ... 67.3    
Operating Profit Growth % ... ... 282    
Pre-Tax Profit Growth % ... ... 312    
Net Profit Growth % ... ... 304    
market share          
Market Share in Revenues % ... 0.321 0.700   ...
Market Share in Net Profit % ... 0.669 ... ... ...
balance sheet Unit 2014 2015 2016 2017 2018
balance sheet          
Cash INR bil < 0.001 8.10 60.1    
Interbank Loans INR bil 4.01 23.6 13.5    
Customer Loans INR bil 0 124 168    
Debt Securities INR bil 0 37.6 55.2    
Fixed Assets INR bil 1.09 2.37 2.52    
Total Assets INR bil 5.27 198 302    
Shareholders' Equity INR bil 5.02 33.3 44.5    
Of Which Minority Interest INR bil 0 0 0    
Liabilities INR bil 0.253 164 258    
Interbank Borrowing INR bil 0 0.098 0.249    
Customer Deposits INR bil 0 121 232    
Sight Deposits INR bil 0 2.35 14.5    
Term Deposits INR bil 0 119 218    
Issued Debt Securities INR bil 0 30.5 10.3    
Other Liabilities INR bil 0.253 12.7 15.1    
asset quality          
Non-Performing Loans INR bil ... 0.188 0.863    
Gross Loans INR bil ... 124 169    
Total Provisions INR bil ... 0.085 0.251    
growth rates          
Customer Loan Growth % ... ... 35.4    
Total Asset Growth % ... 3,650 53.0    
Shareholders' Equity Growth % ... 565 33.3    
Customer Deposit Growth % ... ... 92.2    
market share          
Market Share in Customer Loans % 0 0.156 0.204   ...
Market Share in Total Assets % 0.005 0.157 0.213   ...
Market Share in Customer Deposits % 0 0.132 0.218   ...
ratios Unit 2014 2015 2016 2017 2018
ratios          
ROE % ... 14.4 28.6    
ROA % ... 2.71 4.45    
Costs (As % Of Assets) % ... 6.07 4.12    
Costs (As % Of Income) % ... 56.9 36.6    
Capital Adequacy Ratio % ... 29.0 26.4   ...
Tier 1 Ratio % ... 26.7 24.8   ...
Net Interest Margin % ... 9.20 9.62    
Interest Spread % ... 7.71 8.51    
Asset Yield % ... 15.6 15.6    
Cost Of Liabilities % ... 7.89 7.13    
Payout Ratio % ... 0 0    
Interest Income (As % Of Revenues) % ... 86.2 85.4    
Fee Income (As % Of Revenues) % ... 13.4 11.4    
Other Income (As % Of Revenues) % ... 0.413 3.23    
Equity (As % Of Assets) % 95.2 16.9 14.7    
Loans (As % Of Deposits) % ... 103 72.5    
Loans (As % Assets) % 0 63.0 55.7    
NPLs (As % Of Loans) % ... 0.151 0.512    
Provisions (As % Of NPLs) % ... 45.5 29.1    
Provisions (As % Of Loans) % ... 0.069 0.149    
Cost of Provisions (As % Of Loans) % ... 0.857 0.548    
other data Unit 2014 2015 2016 2017 2018
other data          
Employees ... ... ... ...  
Sight (As % Of Customer Deposits) % ... 1.94 6.25    

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Bandhan Bank Logo

Finance

Bandhan Bank has been growing its revenues and asset by 72.5% and 41.9% a year on average in the last 3 years. Its loans and deposits have grown by 47.2% and 52.9% a year during that time and loans to deposits ratio reached 91.7% at the end of 2018. The company achieved an average return on equity of 22.3% in the last three years with net profit growing 92.1% a year on average. In terms of operating efficiency, its cost to income ratio reached 32.1% in 2018, compared to 34.9% average in the last three years.

Equity represented 19.8% of total assets or 28.3% of loans at the end of 2018. Bandhan Bank's non-performing loans were 2.04% of total loans while provisions covered some 72.1% of NPLs at the end of 2018.

Valuation

Bandhan Bank stock traded at INR 526 per share at the end of 2018 resulting in a market capitalization of USD 8,996 mil. Over the previous three years, stock price rose by 0% or 0% a year on average. That’s compared to an average ROE of 22.3% the bank generated for its shareholders. This closing price put stock at a 12-month trailing price to earnings (PE) of 32.2x and price to book value (PBV) of 5.61x in 2018.