Bandhan Bank: Concerns on MFI portfolio an overhang

Brokerages have lately turned optimistic though Q4 results hold key for sentiments to improve

Topics
Bandhan Bank | MFIs

Hamsini Karthik 

Bandhan Bank stock has gained over 40 per cent in a year, indicating that all the concerns expressed last year around how the lockdown could impair its business have subsided to a large extent.

However, for a full-blown improvement in sentiments, the upcoming March quarter results will hold key given that asset quality issues, particularly around the bank’s microfinance (MFI) business accounting for 65 per cent of total for has resurfaced. At over seven per cent gross non-performing assets (NPA) ratio, without considering the Supreme Court’s stay on asset classification, Q3 was ...

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First Published: Thu, March 18 2021. 16:38 IST
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