Bandhan bank is betting big on Gruh acquisition and expects that a little less than 50 per cent of its portfolio will be dominated by affordable housing loans in the next three to five years. Mr Ghosh says that in next three to five years, microfinance and non-microfinance portfolios, which is 60 per cent and 40 per cent now, respectively, would be 50 per cent each.
Detailed report
Citizenship Amendment Bill passed in Lok Sabha. Is this any sort of worry for Bandhan? some outflow of people expected from bangal and assam ?
CAB has nothing got to do with revoking citizenship, its to give citizenship to persecuted minorities of three neighboring countries.
If at all, the protests in WB, Assam will hurt operations and hence business of BB. I dont expect more than 2-3% affect of ongoing protests including Assam’s women protests.
Try to understand other’s views too. I dont see these movements to settle easily if 1980s movements give any clue. Moreover internet is suppressed. We dont know the severity. Poor people are effected most hence Bandhan.
Disclosure- Sold because of unrest.
good to do SIP
stock will give good returns
let it fall badly
Unrest in Bengal
mainly in districts near border where Bangladeshi immigrants majority
In Assam protest getting peaceful
Internet service may be back soon
Agreed, the unrest could impact economic activity, leading to asset quality deterioration, rise in NPA’s
Disclosure: sold in current scenario
Early warning by one of the veterans of the industry.
No holding here but switched from Ujjivan Fin to Ujjivan SFB recently
Bandhan Bank is combating the present challenges in Assam ‘efficiently’ compared with other microfinance players as it had very strong presence at the “ground level” in the state for a very long time, a senior official of the bank told FE. “We are hopeful that the situation will return to normalcy within a short period of time. We are cautious on fresh lending in the state,” the official said. For Bandhan Bank, around 16% of its microfinance loan book is in Assam, while it is around 6% for its total loan book in the state
Detailed report of impact
The presentations attached are quite large.can u summerise your findings based on them?
News regarding microfinance crisis in Assam: https://m.economictimes.com/industry/banking/finance/banking/lenders-in-assam-may-be-staring-at-8-irrevocable-bad-loans-in-state-portfolio/articleshow/73058102.cms
What do you wish to convey from the above table?
So comparing with the best - HDFC bnk vs Bandhan
Would have been interesting to see bajaj fin in mix as well.
Growth rates of Rev and Profit are likely to beat rest of lot as well per last few qtrs run rate ( current qtr NPA to tell real picture of asset quality of micro finance, gruh should do well)…tom result day, let’s see.
Agree with you. My intution too days, it would be good but I am guarded because of some set back in Assam and too much of fluctuations in price. Will wait for this quarter results to get a better picture
Interesting read on Bandhan Bank. “Bandhan created a situation where either we give in to the customer’s demand for higher ticket size loan or perish”
This article is solely based on MFIN data, where Bandhan is not a member. Also, it lacks any new data as per my understanding. All of this is known. Please let me know if you think otherwise.
