Bandhan Bank rises on 23% jump in Q3 advances

Bandhan Bank rises on 23% jump in Q3 advances

NEW DELHI: Shares of Bandhan Bank climbed 3 per cent in Thursday’s trade after the bank said its loans and advances rose 23 per cent year-on-year to Rs 80,255 crore in the December quarter.

The advances were at Rs 65,456 crore in the year-ago period, it said.

Following the development, the stock rose 3.35 per cent to hit a high of Rs 409.45 on BSE.

Total deposits during the quarter advanced 30 per cent to Rs 71,188 crore as against Rs 54,908 crore in the corresponding period last year, the lender said in a statement.

CASA (current account, savings account) deposits of the Kolkata-headquartered bank during the third quarter of the current financial year grew by 62 per cent year-on-year to Rs 30,504 crore.

“Bandhan has not provided updates on asset quality, but we expect collection efficiency to trend well, barring some hiccups in Assam due to recent legislation and ensuing elections. The suburban train service too has resumed in WB and collection efficiency in dependent borrowers should gradually improve. The bank has strategically created a strong provisioning buffer (230bps) to absorb any asset quality shocks,” Emkay Global said.

The brokerage has a long-term Buy rating on Bandhan Bank, given its strong liability profile, asset diversification strategy and ability to manage external disruptions given its strong core profitability, provisioning and capital buffers.

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