Tag: bandhan bank

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. Read more

Private sector lender Bandhan Bank on Tuesday posted 29 per cent quarter-on-quarter (QoQ) fall in net profit at Rs 517.28 crore for the quarter ended March 31 and 20.5 per cent year-on-year degrowth in Q4 FY20 profit due to over two-fold rise in provision and contingencies. Profit for the quarter dropped to Rs 517.3 crore, against Rs 650.9 crore in the same period last year. Provisions and contingencies increased to Rs 827.36 crore during the quarter under review against Rs 294.88 crore in the preceding quarter ended December 2019.Net interest income for the quarter grew sharply by 33.6 per cent year-on-year to Rs 1,680 crore, with advances rising by 60.46 per cent (to Rs 71,846 crore). Asset quality of the company improved with the percentage of gross non-performing assets coming at 1.48 per cent in Q4FY20 over 1.93 per cent in December quarter.

Last week, the RBI lifted the ban on Bandhan Bank opening new branches. and the bank now plans to open 250 branches by the end of 2020. While the news seems to have helped Bandhan’s stock, which is down 2.6 percent since last Tuesday versus 5.3 percent fall in Sensex, it is still down by over 22 percent year-to-date, thanks to concerns over slowing growth and asset quality. Even though the Gruh Finance acquisition gave it a head-start in expanding its non-MFI business, Bandhan seems to have hit air pocket since then. Share of non-MFI loans remained stagnant at 39 percent in Q3, indicating that other streams of businesses aren’t helping much yet. Moreover, promoters of Bandhan Bank have to reduce their stake to 40 percent from 61 percent implying that the supply of shares in the open market may remain high. If demand for the stock isn’t encouraging, the scope for a sharp rebound in its price remains muted. In short, the negatives still outweigh positives.