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This Article is From Dec 02, 2022

Bandhan Bank - Asset Quality To Normalise From FY24; Business Diversification Is Key: Motilal Oswal

At the bank's analyst day, the management spelt out its plans to diversify in terms of product and geographical mix.

Bandhan Bank - Asset Quality To Normalise From FY24; Business Diversification Is Key: Motilal Oswal
A Bandhan Bank branch and ATM in Kolkata. (Source: bank's website)

BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

At Bandhan Bank Ltd.'s analyst day, the management spelt out its plans to diversify in terms of product and geographical mix.

Asset quality-related issues are likely to peak in Q3, but should normalise from Q4 FY23. Mix in the micro finance institution business is likely to moderate gradually as other segments gain scale.

Overall, Bandhan Bank expects credit cost to normalise by ~1.8%, with steady state return on asset of ~3% (up/down 15 basis points), even as the cost-to-assets ratio remains slightly higher due to investment in new businesses and branch expansion.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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