First Read: Bandhan Bank "Core metrics to remain under pressure" (Neutral)

研报英文原文证据摘录

First Read: Bandhan Bank "Core metrics to remain under pressure" (Neutral)

rd P/BV). In

EPS (UBS, diluted) (Rs)

our view, delivery on core PPOP/loan growth acceleration and NIM improvement will be

UBS Cons.

the next re-rating catalyst. We have a Neutral.

03/26E 7.59 7.59

03/27E 17.46 17.36

Total loans grew 1% QoQ (MFI loans down QoQ); NIMs stable QoQ 03/28E 21.47 21.81

Bank's net loans were up 1.1% QoQ and grew 18.0% YoY. Among key segments, Micro

Finance loans declined 2.4% QoQ and were flat YoY while housing finance loans grew Yash Agarwal

Analyst

modest at 5.8% YoY. Growth in Retail assets and Wholesale loans were strong at 45%

yash.agarwal@ubs.com

YoY and 38% YoY respectively. Deposits were down 0.9% QoQ /up 6.6% YoY. CASA +91-22-6155 6007

ratio was up 10bp QoQ to 29.4%. This was driven by healthy growth in SA deposits.

Bank's GNPA/NNPA was down 12bp/4bp QoQ to c3.15%/0.9%. Tier I ratio was up 20bp Alok Srivastava

sequentially to 17.5%.

alok.srivastava@ubs.com

+91-22-6155 6037

Management cuts FY27 exit ROA guidance to 1.2-1.4% (vs 1.6-1.8% earlier)

Karan Paresh Trivedi

Management guided for a loan growth of ~15% for FY27 with growth in EEB book to Associate Analyst

remain lower. They maintained their exit FY27 credit cost guidance of 1.6-1.7% as they karan.trivedi@ubs.com

expect a gradual decline in slippages to continue. Bank expects NIMs to reman stable (vs +91-22-6155 6177

improvement earlier) due to pressure on cost of funds owing to macro challenges and

also expects opex to remain elevated. Consequently, they cut their exit FY27 ROA

guidance to 1.2-1.4% vs 1.6-1.8% earlier.

Valuation: We have a Neutral rating

Highlights (Rsm) 03/23 03/24 03/25 03/26E 03/27E 03/28E 03/29E 03/30E

Revenues 117,282 124,903 144,572 135,637 154,893 177,117 202,424 231,156