Bandhan Bank – West Bengal Election Outcome Uncertainty Addressed; Overhang Subsides: ICICI Securities

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Bandhan Bank Ltd. has underperformed Bank Nifty by 20-25% over past three months/six months/ 12 months.

State-specific events in its dominating geographies of West Bengal and Assam led to deviation from its track record of better resilience than peers.

There was disappointment in collection efficiency (sub-90% in January 2021), credit cost (more than 5.5% annualised run-rate in Q3 FY21) and proforma gross non-performing assets (spiked to 7.12%).

Besides Q3 FY21 performance, uncertainty around election outcome in its dominating state has also weighed on stock performance.

However, All-India Trinamool Congress has won the West Bengal state election, thereby suggesting status quo in state administration.

This will subside the major overhang of election outcome on stock performance.

Click on the attachment to read the full report:

ICICI Securities Bandhan Bank Company Update.pdf


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