Amid fears of a second wave of Corona virus, Bandhan Bank’s decision to invest has proved to be right for investors. Bandhan Bank has not only been able to maintain its business growth in the March quarter but it has also received reparations from 96 per cent of its customers.
The bank’s loan book grew by 21 per cent year-on-year in the March quarter, while the bank’s loan book grew by 8.5 per cent on a quarterly basis. Bandhan Bank has achieved this success after the growing threat of Corona and chaos in the State Election.
The analyst says that this is a sign of the bank’s ability to remain firmly frozen in challenging times. Let us know that the loan repayment arithmetic is often messed up during the election season. Many borrowers stop both the work of taking loans and repaying loans in the hope of debt waiver if the new government and the system changes.
Let us know that Bengal and Assam are going through elections. Both these states account for 60 per cent of Bandhan Bank’s micro loans. Let us also say that the main business of Bandhan Bank is micro finance. During this period, there has been a good improvement in the collection of the bank. The collection of micro finance loans has been around 95 per cent in this period while the collection of non micro loans has been at 98 per cent. This will further boost the confidence of investors in the bank.
The high debt recovery rate augurs well for the asset quality of the bank. Significantly, the second wave of Corona has raised concerns about asset quality of banks but it is not expected to have a big impact on Bandhan Bank.
Motilal Oswal Financial Services says that the company’s exposure to the most affected states of Corona is very low. For example, the bank has around 5 per cent of branches in Maharashtra.
This does not mean that investors should be careless about the danger of the second wave of Corona. Corona cases are increasing across the country and regional lockdowns can be implemented in any state at any time. Moreover, despite the improvement in growth so far, the bank’s loan book expansion so far has been lower than the former Corona situation, which raises some concern.
Explain that Bandhan Bank shares have performed very well in the last 1 month compared to the entire banking sector. While Nifty Bank has seen a decline of 11 per cent during this period, Bandhan Bank has seen a weakness of only 1 per cent.
For social media updates, we need Facebook (https://www.facebook.com/moneycontrolhindi/) And Twitter (.).