Bandhan Bank Ltd., incorporated in the year 2014, is a banking company (having a market cap of Rs 51493.09 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 has reported weak business growth and sharp decline in collection efficiency due to COVID-related restrictions and lockdowns still prevailing in the Northeast region. The second wave has led to a surge in COVID cases in the rural areas as well, which has affected collection efficiency in the MFI business. Near-term asset quality would remain under pressure as well as drive an uptick in credit cost estimates. Nonetheless, continued normalcy in business operations and the implementation of the Assam relief package would aid recovery in 2HFY22. Overall, the brokerage remains watchful of asset quality and the progress on collection efficiency in the coming months.
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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