Bandhan Bank tanks 7% as Amphan cyclone hit business
Published On: Friday, May 22, 2020 | By: Team KnowMyStock
The Private sector lender, Bandhan Bank shares tanked 7.28 per cent to Rs 195.4 on the BSE on Friday after the bank said its services have been impacted in some areas of West Bengal and Odisha due to Amphan and the cyclone is likely to impact the business of around 65,000 of micro banking borrowers, worth Rs 260 crore. Cyclone Amphan struck five districts of West Bengal and coastal Odisha on May 20 and lasted till the wee hours of May 21 The major impact has been in the district of South 24 Parganas..“As per the initial assessment, in our areas of operations, 49 banking units (micro banking outlet) in five districts were impacted of which 45 are operational today,” the Kolkata-headquartered Bandhan Bank said in a BSE filing. It further informed that the bank will not be able to continue services in five branches due to issues inaccessibility.
Bandhan Bank said in its press release that the banking outlets which had received prior warning of the Amphan cyclone were prepared with the necessary safety and business continuity measures which enabled the continuity of operations.“In our experience of Fani, the cyclone that caused large scale damage in Odisha in May 2019, the impacted portfolio took 3 to 6 months to achieve normalcy, aided by the committed workforce and customer loyalty,” Bandhan Bank said. “On the back of this experience, we expect the Amphan affected portfolio to regularise by Q3 of FY21,” it added.
Source: Financial Express, Business Standard,
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