Recently, concerns are rising regarding Bandhan Bank. Also, it is claimed to be the next ‘Yes Bank’. Furthermore, Bandhan Bank is consistently underperforming in the stock market. In this blog, we will be reviewing the bank, the possible reasons behind these worries, and the downfall in the stock. Let’s Start.
Bandhan bank is in the microfinance sector. More than 60% of the lending book of Bandhan Bank is towards microfinance. The major reason behind the poor performance of this stock is this microfinance loan. As this bank is majorly funding to small business consistently falling due to covid situation the business is hampered. It is going through a tough time. It might continue falling in the coming quarters. But will come out of this rough path very soon.
Bandhan Bank- Uncertainties Ahead:
Decreasing Shareholding of Institutional Investors:
As the rate of interest these banks are offering to attract the new customers and deposit. This might impact the net interest margins. Also, provisions need to be made as there could be an increase in the number of NPA. That’s why the stock is underperforming. If the investor believes in Bank, its business practices, and growth. Look at the current situation of the bank, it doesn’t seem to be the next ‘Yes Bank’. This stock is good for the aggressive investor as there is a fall from the all-time high of Rs. 700 to Rs. 300 odd levels but should invest only after consulting the advisors and proper research and study.