AgenciesRelated
Motilal Oswal has neutral call on with a target price of Rs 330. The current market price of Bandhan Bank Ltd. is Rs 303.3. Time period given by analyst is one year when Bandhan Bank price can reach defined target.
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.
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).
Did you Know?
Stock score of Bandhan Bank Ltd moved up by 1 in 3 months on a 10-point scale.
View Latest Stock Report »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.
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