Bandhan Bank Ltd., incorporated in the year 2014, is a banking company (having a market cap of Rs 50999.62 Crore).
Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 3787.91 Crore, down -1.90 % from last quarter Total Income of Rs 3861.12 Crore and up 13.19 % from last year same quarter Total Income of Rs 3346.47 Crore. The bank reported net profit after tax of Rs 103.03 Crore in latest quarter.
Investment Rationale
Bandhan Bank witnessed a couple of favourable developments in the week gone by (Jun 13-19). Firstly, RBI’s consultative paper on harmonisation of regulations for MFIs subsides the concerns of the bank being subjected to maximum number of lenders or lending rate cap. Secondly, Assam government’s decision of providing relief as well as incentive for MFI loans will partially address one of the key concerns of its elevated stress pool in Assam (14% in 90+dpd and 11% in 31-90 dpd bucket for Assam as of Mar ’21). Bandhan Bank, with highest market share in Assam (>55% market share with Rs70bn exposure), is naturally bound to benefit from the scheme designed in a way to retain credit culture and promote responsible repayment behaviour. However, it is difficult to quantify the extent of impact as borrower indebtedness of only up to Rs125k is eligible and Bandhan is actively graduating borrower from MFI to individual loans.
Promoter/FII Holdings
Promoters held 40 per cent stake in the company as of March 31, 2021, while FIIs held 35 per cent, DIIs 1.8 and public and others 23.2 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
