Stories Inside 01-46 47-133 Corporate Overview Statutory Reports A Young and Modern Bank 02 Board’s Report 47 Five Years of The Bank; 04 Report on 76 Nearly Two Decades of Bandhan Corporate Governance A Consistent 06 Management Discussion & 115 Performance Trajectory Analysis Report A Growing Bandhan of Trust 10 Rethinking, Reimagining Banking 12 Message from the Chairman 14 Message from the Managing 16 Director & Chief Executive Officer Board of Directors 18 Management Team 21 Extending Pan-India Reach 22 A Wide Spectrum of Offerings 24 Cultivating Human Capital 28 Risk Monitoring and Management 30 Optimising Growth Attributes 32 The Making of A National Brand 36 Foundation Day Celebrations 38 Transforming Lives 40 134-184 Committed to Inclusive 42 Growth of All Financials Continuing the Winning Streak 44 Corporate Information 46 Financial Statements 134 Forward-looking Statement This report contains forward-looking statements, which may be identified by their use of words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Bank’s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Bank cannot guarantee that these assumptions and expectations are accurate or will be realised. The Bank’s actual results, performance or achievements could thus differ materially from those projected in any such forward-looking statements. The Bank assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events. The Bank has sourced the industry information from the publicly available resources and has not verified those information independently. About this report The Bank’s key purpose is to ensure that every individual falls under the purview of formal banking. In order to achieve this, the Bank is reaching out to the unbanked and under-banked population of the country and providing the rightful access to basic banking and financial services while also catering to metro and urban India through its various products and services. Through this report, it is being demonstrated how the Bank is living its purpose. To view this report online, please visit: www.bandhanbank.com In a world that is increasingly connected yet impersonal, Bandhan Bank brings the human touch to banking, extending a helping hand for financial inclusion and economic development. The Bank builds relationships for life with millions of Indians who are most in need of such an uplift. This is achieved through state-of-the- art technology operational efficiency, and doorstep services that fulfil this country’s unique requirements. The result is substantial value created for both the Bank and its customers… and, ultimately, for India. Nurturing Driving Creating Relationships Efficiency Value The Bank engages with its customers Well supported by its hi-touch and The Bank aims to constantly through a one to one connect. It hi-tech business model, the Bank has enhance its value proposition for strives to become the ‘first bank always focussed on strengthening its its stakeholders. The differentiated of choice’ for all their banking and internal processes, improving services, business model is based on strong financial requirements, deepening and optimising capital efficiency. liquidity, capital adequacy, asset and strengthening its relationships The Bank’s in-depth knowledge quality, highly ethical and effective with customers over the years. With gained about individual customers governance. The Bank lives by its the ultimate aim of last-mile banking, through personal interaction helps it mission of creating value through a the Bank is taken to the customers, to take better credit decisions, drive committed team that fully believes in introducing them to the Bank’s value- productivity and increase profitability. the Bandhan goal of aiding financial accretive and tech-driven products empowerment. and services. The Bank remains true to its overarching mission of not just creating value for all stakeholders, but also simultaneously delivering consistent value for the nation. Annual Report 2019-20 A Young and Modern Bank Bandhan Bank’s core fibre Bandhan started in 2001 as a not-for-profit enterprise that stood for financial inclusion and women empowerment through sustainable livelihood creation. It turned into a non-banking financial company (NBFC) a few years later. In 2015, the Reserve Bank of India (RBI) gave Bandhan the universal banking licence. On August 23, 2015, Bandhan Bank was born with a bouquet of products for customers in all segments. In all the avatars of Bandhan, the objective has remained reaching out to the unbanked and the under-banked, and providing last-mile banking for all, big or small. The core purpose has graduated from financial inclusion to inclusive banking. One of India’s youngest universal banks Bandhan Bank is driven by a constant desire to serve its 2.01 crore customers better. It offers world- class banking products and services Vision Mission to urban, semi-urban and rural To be a world-class bank with To provide our customers accessible, customers. convenient and affordable financial simple, cost-effective and innovative solutions for all, offered in an inclusive financial solutions in a courteous and and sustainable manner. responsible manner. To create value for Key differentiators all stakeholders through a committed The experienced management, team, robust policies and superior diversified team, and a well- systems and technology. entrenched distribution network, all of which makes the Bank well poised to meet the aspirations of customers and all other stakeholders, are its key differentiators. Values that drive Bandhan Bank The service that your Bank provides Our values are anchored around our business ethics, consumer focus, and corporate to its customers stands out, as it responsibility towards society at large. strives every day to nurture every relationship, listening closely to customers, and bringing solutions to them that truly cater to their needs. Expanding network Cost effective Respect Exemplary Accountability, Transparency Effective The Bank expanded its network and simple for all governance professionalism, and integrity teamwork & to establish 4,559 banking outlets and discipline commitment across 34 out of 37 States and Union Territories. This includes 1,018 bank branches, 3,346 banking units and 195 home loan centres. 02 03 Corporate Overview Corporate Scaling new benchmarks Serving the unserved and under-served 35% 36% 19% 10% Rural Semi-Urban Urban Metro Statutory Reports Statutory Key Highlights `57,082 crore `1,28,928 crore 64.29% Financial Statements Total Deposits Total Advances and Deposits Share of Microloans in Total Advances 36.84% 3.64% 21.07% CASA Ratio ROAA ROAE 78.43% 27.43% 4,559 Share of Retail in Total Deposits Capital Adequacy Ratio Banking Outlets 02 03 Annual Report 2019-20 Five Years of The Bank; Nearly Two Decades of Bandhan 2006 2010 Bandhan acquired an 2009 NBFC and established 2001 Bandhan Financial Services Private Bandhan became the Limited, yet the core largest microfinance objective remained institution (MFI) in the that of financial The microfinance portfolio country. Bandhan started as a inclusion. was transferred from society that stood for society to NBFC. financial inclusion and women empowerment through sustainable livelihood creation. Started microfinance operations in rural Bengal. 04 05 Corporate Overview Corporate 2018 Reports Statutory 2020 2015 On the day of listing itself, Bandhan Bank emerged as 2019 8th most valued the The Bank set bank on the basis of 1,000th Bandhan Bank started up its Financial Statements market capitalisation. operations as a bank branch th universal bank on Bandhan Bank and 4,000 August 23. acquired the stake banking outlet. of HDFC Limited in It became the GRUH Finance, one first microfinance of India’s foremost company in India to affordable housing get a universal banking finance companies. licence. On the day of the launch, the Bank started with 2,523 banking outlets. 04 05 Annual Report 2019-20 A Consistent Performance Trajectory Business Mix in FY 2019-20 5.78% 4.92% 1.02% 3.91% 31.06% 25.86% Assets Liabilities 63.16% 64.29% Microloans Term Deposit Mortgage Savings Account SME Loans Current Account NBFC Other Retail Loans CAGR CAGR Total Business 46.91% Advances 46.51% (` in crore) (` in crore) 1,28,928 71,846 88,008 44,776 66,208 32,339 46,772 23,543 27,682 15,593 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 06 07 CAGR CAGR Corporate Overview Corporate Deposits 47.41% Net Worth 46.10% (` in crore) (` in crore) 57,082 15,195 43,232 11,202 33,869 9,382 23,229 Reports Statutory 4,447 12,089 3,335 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 CAGR CAGR CASA 68.54% Total Income 64.20% Financial Statements (` in crore) (` in crore) 21,028 7,873 17,618 5,558 11,624 3,738 2,815 6,837 2,606 1,083 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 CAGR CASA Ratio Profit After Tax 82.10% (%) (` in crore) (391) bps 643 bps 40.75 489 bps 3,024 36.84 34.32 788 bps 29.43 1,952 21.55 1,346 1,112 275 2015-16