Latest news with #EEB
Time of India
06-05-2025
- Business
- Time of India
ICICI Securities downgrades Bandhan Bank to Add, target price Rs 185
Financials Bandhan Bank reported muted Q4FY25 PAT of Rs 3.2 billion (RoA of 0.7%). Loan growth was slower, at 4% QoQ (10% YoY), while NIM continued its moderating trajectory (down 20bps QoQ to 6.7%) as growth remained driven by secured loans. Slippages inched up QoQ but were broadly in line at ~5.1% QoQ (vs. 4.9% QoQ). SMA 0+1+2 improved to 3.3% vs. 3.8% QoQ. However, SMA0 in West Bengal (WB) flared up to 2.3% (vs. 0.9%) due to localised issues and bunched-up holidays, though this has been partly rolled-back as on date, as per management. Exposure to Karnataka and Tamil Nadu is limited at ~1% each of the EEB book. The bank believes that credit costs have peaked, though should remain elevated in H1FY26 with improvement in H2FY26. Despite building in ~14?15% YoY growth, PPOP growth is likely to be muted for FY26? 27E due to pressure on NIM (unfavorable loan mix change) and opex growth outpacing loan growth. Investment Rationale Post the risk-weight rollback by RBI, Tier-1 at Bandhan Bank has jumped to 17.9%, suggesting a strong capital buffer. ICICI Securities appreciates management's strategy of focusing on secured products to drive growth and structurally reducing embedded risk in the business. While the bank seems well placed on the interest rate cycle with ~55% higher share of fixed rate loans and ~30% share of wholesale TD. However, continued loan mix change in favour of secured loans (~1,000bps differential) would continue to weigh on NIM; down ~30bps YoY in FY26, in our estimate. Bandhan Bank shall remain in investment phase with rising opex to assets ratio; thus leaving credit costs as the only lever for RoA (likely to play out in H2FY26). The stock trades at an inexpensive at ~1x/0.9x FY26E/FY27E ABV with stable ~1.5% RoA. The target price of Rs 185 (~1x FY27E ABV) is unchanged. Basis the current upside, I-Sec has revise Bandhan Bank?s rating to ADD (vs. Buy). Key risk is higher-than-estimated stress impacting profitability.. Live Events Promoter/FII Holdings Promoters held 39.98 per cent stake in the company as of 31-Mar-2025, while FIIs owned 22.73 per cent, DIIs 16.36 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ICICI Securities has downgraded Bandhan Bank to Add from Buy with a target price of Rs 185. The current market price of Bandhan Bank is Rs 163.95 .Bandhan Bank reported muted Q4FY25 PAT of Rs 3.2 billion (RoA of 0.7%). Loan growth was slower, at 4% QoQ (10% YoY), while NIM continued its moderating trajectory (down 20bps QoQ to 6.7%) as growth remained driven by secured loans. Slippages inched up QoQ but were broadly in line at ~5.1% QoQ (vs. 4.9% QoQ). SMA 0+1+2 improved to 3.3% vs. 3.8% QoQ. However, SMA0 in West Bengal (WB) flared up to 2.3% (vs. 0.9%) due to localised issues and bunched-up holidays, though this has been partly rolled-back as on date, as per management. Exposure to Karnataka and Tamil Nadu is limited at ~1% each of the EEB book. The bank believes that credit costs have peaked, though should remain elevated in H1FY26 with improvement in H2FY26. Despite building in ~14?15% YoY growth, PPOP growth is likely to be muted for FY26? 27E due to pressure on NIM (unfavorable loan mix change) and opex growth outpacing loan the risk-weight rollback by RBI, Tier-1 at Bandhan Bank has jumped to 17.9%, suggesting a strong capital buffer. ICICI Securities appreciates management's strategy of focusing on secured products to drive growth and structurally reducing embedded risk in the business. While the bank seems well placed on the interest rate cycle with ~55% higher share of fixed rate loans and ~30% share of wholesale TD. However, continued loan mix change in favour of secured loans (~1,000bps differential) would continue to weigh on NIM; down ~30bps YoY in FY26, in our estimate. Bandhan Bank shall remain in investment phase with rising opex to assets ratio; thus leaving credit costs as the only lever for RoA (likely to play out in H2FY26). The stock trades at an inexpensive at ~1x/0.9x FY26E/FY27E ABV with stable ~1.5% RoA. The target price of Rs 185 (~1x FY27E ABV) is unchanged. Basis the current upside, I-Sec has revise Bandhan Bank?s rating to ADD (vs. Buy). Key risk is higher-than-estimated stress impacting held 39.98 per cent stake in the company as of 31-Mar-2025, while FIIs owned 22.73 per cent, DIIs 16.36 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
&w=3840&q=100)
Business Standard
30-04-2025
- Business
- Business Standard
Bandhan Bank Q4 results: Profit jumps 482% to ₹318 cr, revenue at ₹3,456 cr
Bandhan Bank on Wednesday reported a 482 per cent year-on-year increase in net profit to Rs 317.90 crore in the January–March quarter (Q4FY25) on the back of lower provisions, even as net interest income (NII) saw a 4 per cent dip. Net profit in the year-ago period had stood at Rs 54.62 crore. Sequentially, net profit was down 25.4 per cent. The bank's operating profit was at Rs 1,571 crore in Q4FY25 compared to Rs 1,838 crore in Q4FY24, as the EEB (Emerging Entrepreneurs Business, which includes microfinance) portfolio saw a decline. Net revenue for Q4FY25 was Rs 3,456 crore compared to Rs 3,560 crore in Q4FY24. NII — the difference between interest earned and interest expended — for Q4FY25 stood at Rs 2,756 crore compared to Rs 2,859 crore in Q4FY24. Partha Pratim Sengupta, managing director and chief executive officer, Bandhan Bank, said the microfinance sector has faced a bit of stress and overall liquidity tightening in the system has impacted both growth and profitability at an industry level. However, he expects a gradual improvement in the MFI segment in the coming months on the back of recent regulatory and monetary actions. 'In the quarter, while loan growth and profitability showed moderate progress versus guidance, we remain encouraged by the continued resilience across the operational metrics,' Sengupta said. Provisions and contingencies in Q4FY25 were lower at Rs 1,260 crore compared to Rs 1,774 crore in Q4FY24. Net interest margin (NIM) for the quarter was 6.7 per cent, 96 basis points lower than the year-ago period. Sengupta pointed out that despite the stress in microfinance, for the full year FY25, the bank had delivered a 'reasonably strong performance'. 'We are one of the very few financial institutions who have a sizeable microfinance portfolio, but have shown year-on-year growth in almost all the parameters if we consider the full-year performance,' he said. The bank's net revenue for FY25 was Rs 14,458 crore, a growth of 16 per cent Y-o-Y. NII for FY25 at Rs 11,491 crore was higher by 11 per cent Y-o-Y. Operating profit at Rs 7,389 crore in FY25 was up 11 per cent Y-o-Y, while net profit at Rs 2,745 crore was higher by 23 per cent Y-o-Y. Roadmap Highlighting the strategic priorities for the next 2–3 years, Sengupta said, 'Over the next couple of years, our strategic priority will centre on achieving deposit growth that outpaces advances growth, with a strong emphasis on stable granular retail deposits.' The bank is targeting advance growth of 15–17 per cent CAGR over the next 2–3 years, with a strategic focus on increasing the secured base. 'We expect secured advances to constitute over 55 per cent of total advances by FY27. While both the secured portfolio and the EEB book are expected to grow, the secured book will grow at a relatively higher pace,' Sengupta said, adding that the growth trajectory of the EEB portfolio would align with prevailing economic conditions.
The Print
30-04-2025
- Business
- The Print
Bandhan Bank to restructure loan book, cut EEB share to 35 pc
The realignment is expected to lower its net interest margin (NIM) by about 50 basis points to 6.1-6.2 per cent from 6.7 per cent recorded in the March quarter. The bank plans to bring down the EEB loan share from 42 per cent to 35 per cent of its total advances, while increasing the share of secured loans, currently at 42 per cent. Kolkata, Apr 30 (PTI) Bandhan Bank will undergo a strategic business rebalancing over the next two-three years, aiming to reduce its reliance on unsecured microfinance loans under the Emerging Entrepreneurs Business (EEB) segment and shift towards a more secured loan portfolio, a top company official said. EEB is a high-margin unsecured loan product. 'The EEB business stress is expected to ease from the second quarter of the current fiscal. We want the EEB share of our loan exposure to be around 35 per cent, while raising the secured lending share,' Managing Director and CEO Partha Pratim Sengupta said. He said the lender is targeting 15-17 per cent credit growth over the next two-three years, and is innovating its product portfolio to support this shift. Bandhan Bank on Wednesday reported a more than five-fold increase in its net profit for the quarter ended March 31 at Rs 318 crore, compared to Rs 55 crore in the year-ago period, driven by lower provisions despite a decline in net interest income. The lender's net revenue in the reporting quarter stood at Rs 3,456 crore, marginally lower than Rs 3,560 crore in the corresponding quarter of the previous year. PTI BSM RBT This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Economic Times
30-04-2025
- Business
- Economic Times
Bandhan Bank Q4 results: Profit zooms 483% YoY to Rs 318 crore, but NII falls 4%
Bandhan Bank reported a strong set of numbers in the March quarter as its profit soared 483% YoY to Rs 318 crore as compared to just Rs 55 crore in the year-ago period. ADVERTISEMENT Net interest income (NII) for the fourth quarter however came at Rs 2,756 crore compared to Rs 2,859 crore in Q4FY24, representing a degrowth of 4% YoY. Operating profit in the reporting period stood at Rs 1,571 crore in the fourth quarter as against Rs 1,838 crore in the same period last year. The provisions (other than tax) and contingencies charged to the profit and loss for Q4FY25 were lower at Rs 1,260 crore compared to Rs 1,774 crore in Q4FY24. The collection efficiency for EEB loans was at 97.8% for Q4 FY25, slightly higher than 97.4% in coverage ratio (including technical write-offs) as of March 2025 stood at 86.5% versus 84.5% in the previous year. Excluding technical write-off, PCR stands at 73.7%. As of March 31, 2025, total deposits stood at Rs 1.51 lakh crore as against Rs 1.35 lakh crore in the previous year – a growth of 12% YoY. CASA Deposits stood at Rs 47,437 crore and CASA Ratio stood at 31.4%; CASA + Retail TD to total deposit ratio stands at around 69% ADVERTISEMENT Gross Advances rose 10% YoY to Rs 1.37 lakh crore as of March 2025, as against Rs 1.25 lakh crore in the previous year. On a YoY basis, retail book (other than housing) grew 98%, Wholesale Banking grew 35%, and the Housing book showed a growth of 11% (18% YoY excluding IBPC). On Wednesday, Bandhan Bank shares closed 1.8% lower at Rs 165 on NSE. (You can now subscribe to our ETMarkets WhatsApp channel)
HKFP
22-04-2025
- Business
- HKFP
21 restaurants fined for breaching Hong Kong disposable plastic regulation one year after ban
Hong Kong authorities have fined 21 restaurants for breaching the city's disposable plastic ban in the year since the policy came into effect. Under the first phase of the citywide plastic ban, which began in April last year, restaurants are prohibited from using styrofoam tableware, as well as most single-use plastic items such as utensils, stirrers, and plates. They had a six-month 'adaptation period,' which ended in October. Plastic cups and food containers are currently still allowed to be sold and used for takeaway but cannot be distributed for dine-in purposes. In a Facebook post published on Monday – a day before Earth Day – the Environment and Ecology Bureau (EEB) said that it had received 122 reports of restaurants suspected of violating the ban between October, when the adaptation period ended, and mid-April. Most of the eateries complied after follow-up by the authorities, and only 21 restaurants were fined for still breaching the rule despite receiving a written warning, the bureau said. A business will be fined HK$2,000 if it fails to comply within 10 days after receiving a warning for violating the plastic ban. However, the EEB also highlighted some improvements. 'Relative to the over 26,000 eateries in Hong Kong, we can see that the sector has mostly gotten used to the new laws,' it wrote in the Chinese-language post. It added that an increasing number of customers have been getting into the habit of bringing their own reusable cutlery and that restaurants have also been using alternatives to plastic. 'The restaurant chains say that more than 80 percent of their customers no longer ask for takeaway cutlery, thereby preventing over 60 million sets of disposable cutlery from being dumped into landfills in Hong Kong,' the bureau also said. 'Low-carbon city' Under the second phase, the ban will be extended to more types of tableware including plastic cups, cup lids, food containers and food container covers, which are currently only banned for dine-in services but still allowed for takeaway customers. No timeline has yet been announced for the second phase and the Facebook post also did not mention when the new rules would kick in. But the bureau said it was preparing to collaborate with 'large-scale restaurant groups' to conduct tests in the middle of the year for plastic alternatives to identify substitutes that would 'affect citizens' lives the least.' The bureau hopes to promote a plastic-free culture and turn Hong Kong into a 'green, low-carbon city,' it added. According to Hong Kong's Climate Action Plan 2050, which was released in 2021, the city aims to reduce carbon emissions by 50 per cent from the 2005 levels before 2035, and to achieve carbon neutrality before 2050. Green groups, however, have criticised the plan, saying it does not have a mechanism for reporting the progress of meeting the objectives. The government should establish regular reporting and clear reduction targets for different sectors, they said.
