*Bandhan Bank (BANDHAN IN ) 4QFY22 Business Update: Strong loan growth; EEB CE back to pre-covid level*
*• Collection efficiency (incl. NPA customers and excluding arrears) for the month of Mar-22 stands at 96% vs. 93% in Dec-21, 90% in Sept-21 and 80% in June-21 with EEB at 95% vs. 91% in Dec-21, 86% in Sept-21 and ~72% in June’21. Non EEB collection efficiency was stable at 98% QoQ.*
*• Collection efficiency ex. NPAs and arrears was back to pre-covid levels of 99%*
• Loan book (incl. TLTRO) grew by 16.4% YoY (+15.2% QoQ) to Rs 1,014bn. The growth is higher for 4QFY22 as it is prior to w/os.
• Bank’s deposits grew by 23.5% YoY (+14% QoQ) to Rs 963bn led by 32.4/67.6% growth in bulk deposits (Rs 219bn, 22.7% of deposits).
• CASA grew 18.5/4.0% YoY/QoQ to form 41.6% (-400bps QoQ).
• Retail deposits grew by 21.2/4.2% YoY/QoQ to Rs. 744bn (~77.3% of total deposits, -730bps QoQ).
*We currently have a OP rating on the stock with target price of Rs xxx