Bandhan Bank Ltd., incorporated in the year 2014, is a banking company (having a market cap of Rs 48988.50 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 3943.37 Crore, up 4.10 % from last quarter Total Income of Rs 3787.91 Crore and up 15.82 % from last year same quarter Total Income of Rs 3404.84 Crore. The bank reported net profit after tax of Rs 373.08 Crore in latest quarter.
Investment Rationale
BANDHAN reported higher-than-estimated PAT, supported by margin expansion. This was despite elevated slippages/provisions due to (a) the second COVID wave (which severely impacted the MFI sector) and (b) the disturbance in credit culture due to loan waivers. Restructuring/SMA overdue in the MFI book increased sharply. Provision coverage increased to ~62%, which gives us some comfort. Collection efficiency in the MFI portfolio stood at 86%, with 85% for West Bengal – closer to the rest of India. Overall, asset quality remains uncertain as the pool of restructured/SMA overdue remains high. Thus, the brokerage estimates credit cost to remain elevated at 5.5% of loans for FY22 (similar to FY21 levels).
Promoter/FII Holdings
Promoters held 40 per cent stake in the company as of June 30, 2021, while FIIs held 35.4 per cent, DIIs 2 per cent and public and other 22.6 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.
