"The bank has made higher Covid-related provisions of Rs 1,000 crore during Q3FY21, pre-dominantly towards rising stress in Assam, thus taking additional provisions to 3.6 per cent of loans to manage higher delinquencies in coming quarters," the brokerage added.
Operating performance remains strong and continues to demonstrate strong deposit performance, led by retail deposits, the brokerage further said while maintaining a ‘neutral’ rating on the stock on the back of rising asset quality concerns.
reported a sharp surge in NPA denting improved operating performance. Proforma based GNPA saw a meaningful spike, GNPA ratio (proforma) increased to 7.12 per cent from 1.5 per cent levels QoQ. Collection efficiency declined from 94 per cent in September 2020 to 92 per cent in January 2021. The growth of NII was on account of 30 bps rise in the NIMs sequentially," ICICI Securities said in a note.
In the past one month, the stock of Bandhan Bank has dipped 19 per cent as compared to a 7 per cent rise in the S&P BSE Sensex. At 11:59 am, it was trading 5 per cent lower at Rs 325 as against a 0.50 per cent decline in the benchmark index. A combined around 19 million equity shares changed hands on the counter on the NSE and BSE.
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