India's Bandhan Bank bottoms private lenders on Q2 asset quality decline

Bandhan Bank

19/10/2023 06:48

** Shares of Bandhan Bank  BANH.NS  drops 4.2% to 228
rupees, top loser on Nifty private bank index  .NIFPVTBNK  which
is down 0.15%
    ** If losses hold, BANH on track to decline for third
straight session
    ** Co's asset quality in Q2 deteriorated, as gross
non-performing assets (GNPA) ratio climbs to 7.32% from 6.76%
QoQ on higher microfinance institutions (MFI) slippages
    ** Net interest margin (NIM), an indicator of a bank's
profitability, was slightly up at 7.2% from 7% last year
    ** Macquarie downgrades BANH to neutral, says believe
incremental forward flows into MFI stress pool predominantly
from the current account book
    ** Macquarie cuts EPS estimates by 10-11% over FY24E-26E,
factoring in higher credit costs, lower loan growth
    ** Also cuts PT to 230 rupees from 280 rupees; new PT a 3.4%
implied downside to last close
    ** As of last close, BANH up 1.7% YTD vs 4.5% gain in Nifty
private bank index

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))