Loans and advances stood at Rs 99,374 crore at end of September quarter, only 3 percent higher on a sequential basis
Shares of Bandhan Bank dropped 3.2 percent intraday on October 10 after the private lender reported weak trend in disbursements for Q2FY23. The bank’s loans and advances stood at Rs 99,374 crore at end of September quarter, only 3 percent higher on a sequential basis.
At 2 PM, the stock was quoting Rs 266 on the National Stock Exchange. In the last six months, it has declined over 16 percent.
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Total deposits of the bank rose by 7 percent to Rs 99,365 crore at end of September, as against Rs 93,057 crore a quarter ago. Of this, retail deposits were of Rs 73,660 crore, which was higher by only 1 percent. Growth in CASA deposits also remained flat on a sequential basis at Rs 40,509 crore, compared to Rs 40,195 crore in the June quarter.
The company said its pan India collection efficiency, excluding non-performing assets and including restructured customers, was 97 percent, marginally up from 96 percent at end of June 2022 quarter.
Analysts at Motilal Oswal have a ‘Neutral’ rating on the stock with a target price of Rs 275. “The bank has reported a modest Q2FY23 update with a slight pick-up in business growth though it still remains subdued. Collection efficiency witnessed a marginal improvement keeping us watchful of the asset quality and credit cost, thereby impacting earnings adversely,” they mentioned in a note.
CLSA also sees an uptick in the bank’s NPAs (non-performing assets). “Collection efficiency for September was slightly better but significantly behind March 2022 level,” the firm stated. It has an Outperform call with a target price of Rs 325.
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