Bandhan Bank Q1FY21 Result Review - Mr. Jaikishan Parmar, Sr, Equity Research Analyst, Angel Broking Ltd

"Bandhan banks Loan portfolio (on book + off book) grew 17.68% YoY, which is weak compared to his growth trajectory. However, considering the current situation 17.68% growth is not bad. The liability front bank did well, as Deposit and CASA grew at 35.3% and 47%, respectively. Other positives are NIM improved marginally, Lower OPEX led to an improvement in Cost to income ratio by 210bps to 27.9% and GNPA at 1.43% vs 1.48%QOQ. Overall Bank collections improved to 76% by the end of June'20 compared to 29% in April'20. Pre provision profit grew by 16.8% YoY, but accelerated additional provision on standard advances amounting to Rs. 750 crores impacted profitability. Here on the stock price movement will largely depend on how quickly collection improves to pre COVID level."

Shares of Bandhan Bank Ltd was last trading in BSE at Rs.349.65 as compared to the previous close of Rs. 352.4. The total number of shares traded during the day was 728878 in over 9133 trades.

The stock hit an intraday high of Rs. 370 and intraday low of 345.35. The net turnover during the day was Rs. 261590549.

Source : Equity Bulls

Keywords