#1Investor Presentation – Q1 FY 2018-19 Bandhan Bank July 2018#2Disclaimer Bandhan Bank This presentation is confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Bandhan Bank Limited (also referred to as 'Bank'). 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This presentation contains certain supplemental measures of performance and liquidity that are not required by or presented in accordance with Indian GAAP, and should not be considered as an alternative to profit, operating revenue or any other performance measures derived in accordance with Indian GAAP or an alternative to cash flow from operations as a measure of liquidity of the Bank. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make independent analysis as you may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. 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The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding expansion plans and the benefits there from, fluctuations in our earnings, our ability to manage growth and implement strategies, competition in our business including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, our ability to win new contracts, changes in technology, availability of financing, our ability to successfully complete and integrate our expansion plans, liabilities, political instability and general economic conditions affecting our industry. Unless otherwise indicated, the information contained herein is preliminary and indicative and is based on management information, current plans and estimates. Industry and market-related information is obtained or derived from industry publications and other sources and has not been verified by us. 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This presentation is not an offer for sale of securities in the UNITED STATES or elsewhere.#3Key Highlights & Strengths Bandhan Bank#4Key Highlights Bandhan Bank - Overview Loan portfolio (on book + off book) for Q1FY 18-19 grew 52.37% Y-0-Y Deposits grew by 36.83% Y-o-Y in Q1 FY 18-19 Net NPA at 0.64% Retail Deposit to Total Deposit at 80% Added 6.35 lakh Customer during the quarter with total customer base reaching to 13.65 million (Micro Banking- 11 million and Non Micro- 2.65 million) Income from PSLC of 2.56 Billion to be recognised over 4 quarters, hence booked 0.64 Billion in Q1 FY18-19 MTM losses of 0.87 Billion to be amortised over 4 quarter, hence booked 0.22 Billion in Q1 FY18-19 Snapshot of operations (30th June 2018) Total Deposits Total loans and advances Net interest margin (NIM) *307.0 bn * 325.9 bn¹ 10.27%* CASA ratio (%) 35.5% ROAA (%) 4.49%* BAN 34 States & UTS 937 Branches 2,764 DSCs 458 Cities 475 28,826 ATMs Employees * Annualised 1 Gross loan portfolio; 19.92%* ROAE (%) Bandhan Bank 13.65 mm 85% Customers PRIORITY Micro loans 95%¹ Priority sector loans#5Geographical Distribution Bandhan Bank#6Geographical Distribution Banking Outlets Focus on serving the rural & underbanked population Metro, 4000 3700 3701 3284 3000 Rural, 2000 37% 2444 2764 2764 1000 840 936 937 0 June 17' March 18' June 18' Branches DSCs Banking Outlets 10% Urban, 19% Semi-urban, 34% Bandhan Bank Multi channel distribution network with a mix of branches and digital Branches ATMs DSCs Net banking mBandhan Debit card Bandhan Bank has 3rd highest distribution network amongst Private Banks in India in terms of Banking Outlets* * Source RBI MOF database as on 10.04.2018 6#7Geographical Distribution Bandhan Bank Branch Mix- State Wise Significant presence in under- penetrated East and North East India Banking Outlets as on 31st March 2018 JAMMU AND KASHMIR IMACHAL PRADESH PUNJAB RAKHAND HARYAN New Delhi UTTAR PRADESH SIKKIM RAJASTHAN Jaipur जयपुर MADHYA India A med ad અમદાવ CHHATTISGAR Chhindwara ODISHA Mumba मुंबई MAHARASHTRA TELANGANA Hyderabad హైదరాబాద్ ANDHRA KARNATAKA PRADESH Bengaluru Chennai Sarsted Glas Mysuru ಮೈಸೂರು TAMIL NADU Kochi KERALA ARUNACHAL PRADESH NAGALAND MEGHALAYA ANTPUR Bangladesh TRURA MIZORAM West 10.00% North 7.10% North East 10.90% South 6.50% East 52.70% In East & North East Regions, Bandhan Bank has the highest distribution network amongst Private Banks and second highest distribution reach amongst all Banks in India, in terms of Banking Outlets * * Source RBI MOF database as on 10.04.2018#8Micro Banking Assets Micro Banking Asset Growth (in Billion) 44.8% 279.7 193.2 June 17' June 18' 276.5 March 18' Micro Loan Disbursements (in Billion) 107.76% 46.41 96.42 Number of Active Micro Borrowers (in Mn) 6.72 18.30% 7.95 7.70 Bandhan Bank Q1 FY 18 June 17' Q1 FY 19 June 18' March 18' 10#9Business Overview Bandhan Bank 8#10Asset Overview Advances Growth (in Billion) 52.37% 213.89 325.9 323.4 June 17' June 18' Composition of Advances (in %) March 18' Number of Active Borrowers (in Million) 18.82% 8.08 6.8 June 17' Higher PSL Portfolio 5% 7.83 June 18' March 18' 90% 85% 86% 95% 10% June 17' 15% 14% June 18' March 18' Priority sector advances (as a % of advances) - FY2018 Non-Micro Banking Assets Micro Banking Assets ■ PSL Assets Non PSL Assets Bandhan Bank 9#11Non-Micro Banking Assets Bandhan Bank Product wise Disbursements - Non Micro Advances (in Billion) Retail SME Small Enterprise Loan Total Disbursement - Non Micro Banking Asset ( in Billion) 59.28% 6.61 2.47 1.83 2.85 0.75 1.57 1.29 4.15 Q1 FY 18 Q1 FY 19 Non Micro Banking Portfolio growth (in Billion) 20.68 128.11% 46.14 46.89 Q1 FY17 Q1 FY 19 June 17' June 18' March 18 11#12Liabilities Profile Deposits Growth ( in Billion) 224.39 36.83% 307.03 Number of Customers (in Million) Micro Banking General Banking 25.81% 13.65 13.01 61.47 10.85 1.61 2.66 2.4 9.24 10.99 10.6 54.43 136.69 June 17' June 18' March 18' CASA (%) 110.87 35.5% 34.3% 26.3% 88.15 48.09 Bandhan Bank 11.00 June 17' 20.72 June 18' Current Savings TD Retail TD Others June 17' June 18' March 18' 12#13Labilities Profile Retail to total Deposits (%) 75.7% 80.0% 71.9% Bandhan Bank Moving towards a more stable and cheaper source of funding June 17' June 18' March 18' Borrowings 20% Average SA Balance (in 000') General Banking Micro Banking 1.21 1.56 2.10 34.00 36.10 29.52 Q1 FY 18 Q1 FY 19 Q4 FY 18 Deposits 0% Borrowings 100% 23 Aug 2015 March 2016 Deposits 80% Borrowings 4.1% Deposits 95.9% 13 June2018#14Credit Rating Instrument Rating of Bank's Financial Securities Rating Unsecured Subordinated Non- Convertible Debenture* CARE AA; Stable (Double A; Outlook: Stable) Rating Agency Amount (in Billion) CARE Ratings 1.60 [ICRA]AA (Double A; Outlook: Stable) ICRA [ICRA]AA (Double A; Term Loans From Bank* ICRA 0.80 Outlook: Stable) Certificate of Deposit [ICRA] A1+ ICRA 15.00 Bandhan Bank 14#15Financial Overview Bandhan Bank 15#16Financial Performance Total income (in Billion) Net Interest Income Other Income Total Income 44.3% 12.48 10.67 8.65 2.11 2.03 1.22 10.37 8.64 7.43 PAT (in Billion) 47.5% 3.27 4.82 3.88 Q1 FY 18 Q1 FY 19 Q4 FY18 Bandhan Bank Operating expenses to Average Assets (%) 4.16% 3.98% 3.69% Q1 FY18 Q1 FY19 Q4 FY18 Q1 FY 18 Q1 FY 19 Q4 FY18 16#17Financial Performance Bandhan Bank ROAA & ROAE* ■ROAA ROAE Spread % Yield Cost of funds (Excl Cap.) Spread 28.1% 27.7% 16.7% 19.9% 15.4% 9.6% 7.0% 14.6% 8.9% 6.5% 8.4% 6.2% 4.4% 4.5% 4.1% Q1 FY18 Q1 FY19 Q4 FY18 Cost to Income Ratio 35.3% Q1 FY18 • Annualised; Monthly Average 34.3% 34.0% Q1 FY18 Q1 FY19 Q4 FY18 Fee Income to Total Income Ratio 9.6% 11.9% 13.1% Q1 FY19 Q4 FY18 Q1 FY18 Q1 FY19 Q4 FY18 17#18Financial Performance Capital Adequacy Ratio NIM Tier I Tier II Total 32.61% 31.48% 26.12% 1.18% 1.18% 1.55% 31.43% 30.30% 24.57% 10.8% 10.3% 9.3% Bandhan Bank Q1 FY18 June 17' June 18' Q1 FY19 Q4 FY18 March 18' Gross NPA and Net NPA Credit Cost Credit Cost - NPA Credit Cost - Standard Gross NPA (%) Net NPA 1.26% 1.25% 0.93% 1.37% 1.51% 0.64% 0.56% 0.58% 0.78% 0.70% 1.01% 0.66% 0.81% 0.36% 0.12% June 17' June 18' March 18' 18 Q1 FY18 Q1 FY19 Q4FY18#19Profit & Loss Statement (IN million) Particulars Q1 FY 19 Q1 FY 18 YoY% Q4 FY 18 QOQ% Bandhan Bank Interest Income 15,562 11,534 34.93% 13,506 15.22% Interest expenses 5,190 4,099 26.63% 4,872 6.53% Net Int. Income (NII) 10,372 7,435 39.50% 8,634 20.13% Non Interest Income 2,107 1,220 72.75% 2,034 3.59% Total Income 12,479 8,655 44.19% 10,668 16.97% Operating Expenses 4,273 3,086 38.49% 3,630 17.73% Operating Profit 8,205 5,569 47.34% 7,038 16.58% Provision (Std. + NPA+MTM) 800 556 43.83% 1,091 -26.64% Profit before tax 7,405 5,012 47.73% 5,947 24.51% Tax 2,588 1,747 48.14% 2,069 25.09% Profit after tax 4,817 3,266 47.51% 3,879 24.20% 19#20Balance Sheet (IN *Million) Bandhan Bank Particulars As at As at 30th June 2018 30th June 2017 YoY% As at 31st March 2018 QOQ% Capital & Liabilities Capital 11,928 10,951 8.92% 11,928 Reserves & Surplus 86,709 36,779 135.76% 81,891 5.88% Shareholder Funds 98,637 47,730 106.65% 93,819 5.13% Deposits 307,030 224,394 36.83% 338,690 -9.35% Borrowings 13,267 8,520 55.72% 2,850 365.50% Other liabilities and provisions| 16,329 13,751 18.75% 7,741 110.95% Total 435,263 294,395 47.85% 443,101 -1.77% Assets Cash and balances with Reserve Bank of India 18,950 18,327 3.40% 28,371 -33.21% Balance with Banks and Money at call and short notice 17,925 17,484 2.53% 26,735 -32.95% Investments 85,787 65,947 30.08% 83,719 2.47% Advances 305,330 187,431 62.90% 297,130 2.76% Fixed Assets 2,242 2,443 -8.22% 2,381 -5.84% Other Assets 5,029 2,763 81.97% 4,764 5.55% Total 435,263 294,395 47.85% 443,101 -1.77% 20#21Our Board & Management Bandhan Bank 21#22Experienced and professional team... Management Team Chandra Shekhar Ghosh MD & CEO Founder of BFSL, has 25 years of experience in the field of microfinance and development Awarded 'Entrepreneur of the Year' by Forbes and ET in 2014 Sunil Samdani Chief Financial Officer 15+ years of experience in financial industry Previously served as Head of Business Analytics and Strategy at Development Credit Bank and as CFO at Karvy Rahul Johri Head, Retail Banking 23+ years of experience across multinational banks. Previously worked as Head of Consumer Banking and member of India Management committee at DBS Bank India Mahendra Mohan Gupta Head, Legal 32+ years experience in the legal, finance and banking industry Previously worked as DGM- Legal at ICICI Bank Biswajit Das Chief Risk Officer 4 26 years of experience in banking industry Previously served as Head-RBS and regulatory reporting at ICICI Bank Santanu Banerjee Head, HR 25+ years of experience in the field of banking and finance Previously worked as Head of HR Business Relationship at Axis bank Arvind Kanagasabai Head, Treasury 28+ years of experience at a PSU Bank Previously served as CFO at SBI DFHHL, Mumbai Sourav Kar Chief Compliance Officer 25+ years of experience in banking industry Previously served as Regional Business Manager - Liability Sales at ING Vysya Bank Indranil Banerjee Company Secretary 15+ years experience in financial industry Previously served as Company Secretary at Energy Development Company Vijaykumar Ramakrishna Chief Information Officer 20+ years of experience in the field of technology Previously worked as Group Manager of Intuit India and as Chief Technology Officer of Yes Bank Subhro Kumar Gupta Chief Audit Executive F 33+ years experience in Banking Industry. Previously served as Head Audit at ICICI Bank Nand Kumar Singh Head, Banking Operations and Customer Services 25+ years experience in banking industry Previously served as Retail Banking Head, Patna Circle, at Axis Bank Nicky Sharma Chief Strategy Officer 10+ years of experience in the field of technology & Finance Previously served as Associate Director at PWC, Gurgaon Deepankar Bose Head, Corporate Centre ➤ 35+ years experience in banking industry Previously served as Chief General Manager and Head Of Wealth Management business, at SBI 22 Bandhan Bank#23Board of Directors ... backed by a strong independent Board Bandhan Bank Chandra Shekhar Ghosh MD & CEO Has significant experience in the field of microfinance Awarded 'Outstanding Leadership Award' by Dhaka University Harun Rashid Khan Chairman ➤ Retired as Deputy Governor of Reserve Bank of India Instrumental in formulation of Payments system Vision 2018 of RBI Bhaskar Sen Director Retired as Chairman & MD of United Bank of India ➤ Previously, Executive Director of Dena Bank Krishnamurthy Subramanian Director ➤ Significant experience in the field of finance services Sisir Kumar Chakrabarti Director ➤ Previously, Deputy Managing Director at Axis Bank ➤ Also worked with State Bank of Bikaner and Jaipur prior to joining Axis Bank Ranodeb Roy Non-executive Director ➤ Founder of RV Capital Management Private Limited, Singapore, he was earlier heading Fixed Income Asia Pacific in Morgan Stanley Asia) Singapore G.E. Baker Nominee Director ➤ Significant experience in the private equity sector ➤ Worked on IFC's investments in manufacturing and financial sector investments Dr. Holger Dirk Michaelis Nominee Director Significant experience in private equity and as strategic advisor to financial services companies Currently, he is working at GIC Chintaman Dixit Director Significant experience in finance and accountancy sector Previously, he has worked at Life Insurance Corporation and Indian Bank Snehomoy Bhattacharya Director ➤ Significant experience in public and private banking sector ► Previously worked as Executive Director - Corporate Affairs T. S. Raji Gain Director ➤ Significant experience in the field of agricultural and rural development, Previously, she has worked with NABARD Currently, Executive Director BIRD 23#24Awards and accolades Bandhan Bank mfin MEIN Microfinance Awards 2018 In Pursuit of Roslenical MFIN Microfinance Award 2018 Bandhan Ban kreceived the MFIN Microfi a ce Avard D18 - In Pursuit of Excellence' in the following two categories: • Risk and Resilience Framework Microfinance Plus Activities Shri Giriraj Sngh, Miniser of Sate for Micro, Small and Mediu mEnterprises (M ME), Govt. of India handed over the award in New Delhi on May 24, 2018. Pride of Bengal Mr. Chandra Sekhar Ghosh, MD & CEO, Bandhan Bank Ltd. received the Pride of Bengal award on June 30, 2018, at Kolkata. Pride of Bengal i san in pirational award in situted by Bund Ta be India (RI). The award honours individuals who have sgnificantly contributed in their own fields and have made Bengal proud in the global arena.#25Thank You Bandhan Bank