Nuvama

Bandhan’s Q2FY26 earnings are the weakest in the sector with a big miss on NIM and higher credit cost. Had it not been for lower opex, the bank could have reported a loss. Compared to consensus, NIM was 8% lower, PPOP

RoA remains low; Q1 still a beat

Bandhan’s Q1FY26 earnings though weak are better than expected with a beat on NIM, lower slippage and provisions. NIM fell 27bp QoQ versus our expectation of 45bp while credit cost of INR11.5bn was 9% lower QoQ including

Bandhan reported weak Q4FY25 earnings, with PAT significantly below consensus driven by higher slippage leading to higher credit cost, lower NIM and another big technical write-off. NIM fell 20bp QoQ due to higher

Bandhan reported weak Q3FY25 earnings with a sharp drop in NIM and a big technical write-off. A sharp decline in NII due to margin miss and weak core fees led to PAT missing consensus by 7%. Net one-off income was high

Bandhan’s earnings deteriorated in Q2FY25, but were stronger than MFI peers given the big clean-up that has already happened and early guardrails. Lagged EEB slippage rose to 5.6% from 4.3%, up 38% QoQ, but declined 25%

Thematic

Banking

October 24, 2024

Invite for Punjab National Bank- Conference Call-28th Oct'24

Nuvama Wealth Management is hosting a conference call with the management of Punjab National Bank to discuss the Company’s Q2FY25 ended September 2024 financial results on Monday, October 28, 2024 at 4.30 PM IST.

Earnings strong; CAR markdown big too

Bandhan reported strong Q1FY25 earnings with a beat on PAT driven by lower-than-normalised seasonality. AUM grew 0.7% QoQ—a contrast to typical sequential decline in Q1—led by sharp growth in retail. Even EEB loans

Clean-up complete; all eyes on new CEO

Bandhan’s Q4 PAT was significantly below consensus driven by a miss on credit cost and opex. NII beat estimates by 6% due to lower slippage and strong EEB growth. Credit cost was uncomfortably high at 5.8%. While BAU

Small improvement in SMA, miss on PAT

Bandhan’s PAT missed consensus by 15% due to higher provisions and lower other income. While there was some improvement in SMA, it remained high at 3.3% (4.2% QoQ) and NPLs rose sharply driving an increase of 9% QoQ in

Thematic

Banking

January 03, 2024

Banking - Wage settlement impact on banks; Sector Update

The Indian Banks' Association (IBA) and bank unions have agreed to a 17% wage hike for public sector banks. The wage revision will be effective from November 1, 2022, for a period of five years

Standard stress continues to stay high

In Q2FY24, Bandhan’s NII missed consensus due to weaker than expected asset growth of 1% QoQ. Based on Bandhan’s business update, we had assumed asset growth of ~4% QoQ. More disappointing than the NII miss was the fact

Asset quality falls short of expectations

While Bandhan posted weak Q1FY24 earnings, it is in line with consensus. Meanwhile, earnings expectations have been rebased since the business update. But asset quality fell short of expectations with non-ECLGS EEB

Earnings rebound sharply

Bandhan’s earnings rebounded sharply in line with guidance—Q4FY23 PAT shot up 178% QoQ (-57% YoY), which is in line with our estimate. Core PPOP rose 19% QoQ driven by NII growth of 19% QoQ and opex uptick of 9% QoQ.

Thematic

Banking

May 08, 2023

Invite for Five-Star Business Finance - Conference Call-10th May'23

Nuvama Wealth Management is hosting a conference call with the management of Five-Star Business Finance to discuss the Company’s Q4FY23 financial results on Wednesday, May 10, 2023 at 10.00 AM IST.

Asset quality rebounds

Standard stress pool (1-90 DPD EEB loans) reduced sharply from 13.1% to 8.1% QoQ in Q3FY23, as guided. EEB slippage also fell from INR36bn to INR28.5bn with 90% from the disclosed stress pool. While NII growth missed

Pain to persist in Q3FY23; no hurry to buy

Highlights from Bandhan’s analyst day: i) Bandhan reiterated its strategy of a) diversifying out of EEB towards housing, retail and commercial, b) expanding its geography; and c) upgrading its IT framework. ii) Steady

Big miss; lofty slippage to persist in Q3

PAT of INR2bn missed rebased Street’s estimates of INR6-8bn and declined 76% QoQ on higher credit cost, which rose sharply to 5.2% vs. 2.7% QoQ. Slippage was at an all-time high of 21% vs. 5% QoQ. The bank wrote-off

Quarter marked by one-offs

The Q1FY23 earnings of Bandhan Bank (Bandhan) were impacted by a few one-offs, viz., Assam floods, higher MTM losses and RBI regulations. Asset quality stress was higher given Assam floods and greater flows from

Strong recovery trends, sustenance key

Bandhan Bank’s (Bandhan) Q4FY22 PAT of INR19bn surpassed estimates on strong core profitability and lower credit cost. Q4FY22 was characterised by sharp recovery trends seen in lower stress; GNPL down to 6.5% and lower

Micro risk to macro possibilities

Post a significant underperformance since our initiation, we now upgrade Bandhan Bank (Bandhan) from ‘REDUCE’ to ‘BUY’, given the waning red-flags. Our earlier prognosis of sectoral headwinds were as expected, which are

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