Bandhan Bank Ltd., incorporated in the year 2014, is a banking company (having a market cap of Rs 49793.84 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
While its performance in 1QFY22 is going to be highly volatile, the risks to MFI lenders are receding at the margin. Near term earnings/asset quality pressure may continue as the recovery in CE and implementation of the Assam package will take some time. Bandhan has already reported a sharp decline in CE to ~72% (including NPAs) in its recent business update. Progress in CE in the coming months remains a key monitorable. The brokerage continues to maintain Neutral rating with a TP of INR375 per share (2.5x FY23E ABV).
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.
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