Stocks - Q : Quality | V : Valuation | PT : Price Trend
Funds - P : Performance | Q : Quality
Funds - P : Performance | Q : Quality
Bandhan Bank has reported its performance for quarter and financial year ending March 2024. The bank’s deposits grew by 25% YoY to Rs. 1.35 lakh Cr during the year, and gross advances grew by 14.5% YoY to Rs. 1.25 lakh Cr. During Q4FY24, Bank has technically written off loans amounting to Rs.3,852 crores. On an underlying basis, adjusting for technical write-offs and liquid assets to total deposits (LATD), the advances growth was 20%. The Gross Non-Performing Assets (GNPA) ratio improved to 3.8% in FY24 from 4.9% in FY23, and the Net NPA ratio improved to 1.1% from 1.2%.
The bank’s net revenue for the FY24 was Rs. 12,490 Cr, compared to Rs. 11,728 Cr in FY23. The Net Interest Income (NII) for FY24 stood at Rs. 10,326 Cr, an 11% growth from Rs. 9,260 Cr in FY23. The Net Interest Margin (NIM) for the year was 7.3%.The Return on Equity (RoE) for the year was 10.7%, and Return on Assets (RoA) was 1.4%. For Q4FY24 Bandhan bank has reported ROE 1% and ROA of 0.1% on account of impact of techical write-off done during the quarter. Excluding the impact of write-off done during the quarter, ROA and ROE are at 2.2% and 17% respectively.
The bank's balance sheet size as of March 31, 2024, was Rs. 1.78 lakh Cr, a growth of 14% from Rs. 1.56 lakh Cr as of March 31, 2023. The capital adequacy ratio stood at 18.3%, well above the regulatory requirement of 11%. The Board of Directors recommended a dividend of Rs. 1.50 per equity share for the year, consistent with the previous year.
The collection efficiency for Emerging Entrepreneurs Business (EEB) loans improved to an average of 99% during Q4FY24. The bank's Provision Coverage Ratio (PCR) as of March 31, 2024, was 71.8%.
Having reviewed the legacy portfolio (pre-FY21 originated EEB portfolio) and as a prudent measure, Bandhan has written off loans during the quarter to the tune of Rs 3,852 Cr. The management expects credit costs to be contained at 1.8-2% on an overall portfolio, while EEB portfolio credit costs are likely to be at ~2.5%.
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MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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