Bandhan Bank share price gained 5.6 per cent to hit day’s high of Rs 376.75 apiece on BSE a day after the lender reported an increase in its loans and advances in the first quarter this fiscal. Bandhan Bank stock price has rallied 148 per cent from March lows, taking the total market capitalisation of the bank to Rs 58,855.71 crore. Bandhan Bank registered an 18 per cent on-year rise in loans and advances as compared to Rs 63,164 crore for the corresponding period of preceding fiscal. Similarly, the bank saw its deposits growing 35 per cent to Rs 60,602 crore in the April-June quarter on a yearly basis, as compared to Rs 44,796 crore in the first quarter of last fiscal. “Subsequent to unlock 1, the collection in micro banking loan vertical has shown positive traction from June 01, 2020. There has been a steady improvement in collection efficiency (in value terms) during the month of June 2020 and ended with 68% as on June 30, 2020,” Bandhan bank said in a statement.
It also added that as nearly 70 per cent of customers have started repaying their loans, this number further improved to 70 per cent (resulting in effective moratorium of 30%) as on July 03, 2020. Research and brokerage firm Motilal Oswal Financial Services has given a ‘buy’ rating to Bandhan Bank stock. It believes LGD (loss given default) should remain lower (v/s that of peers) due to Bandhan’s strong market share and higher unique customer base. “As economic activity picks up in India, we are seeing steady improvement in collection trends,” it added in the report saying that furthermore, the bank has created COVID-19-related provisions of Rs 690 crore to deal with higher delinquencies in the near term.
At 11.45 AM, Bandhan Bank shares were trading 2.35 per cent higher at Rs 365.35 apiece as compared to a 0.44 per cent decline in S&P BSE Sensex. For non-micro banking advances, collection efficiency for the month of June, 2020 stands at 84 per cent (resulting in effective moratorium of 16 per cent), the bank added.