India's Bandhan Bank falls; analysts see slow improvement in asset quality

Bandhan Bank

12/02/2024 06:34

** Shares of Bandhan Bank  BANH.NS  fall as much as 6.5% to
202.10 rupees, they rose 3.4% earlier in the session, before
paring gains
    ** Lender reported more than two-fold rise in its Q3 net
profit; however analysts flag concerns over asset quality
    ** Brokerage HSIE says asset quality impact due to slippage
in emerging entrepreneurs business portfolio
    ** Nuvama says 2.5% of loans disbursed in year-ago qtr fall
under non-performing loans as of Q3, which is discomforting
    ** Slower improvement in asset quality; moderation in
slippages and recovery of loan guarantees are catalysts -
Jefferies
    ** Avg rating on BANH at "buy"; median PT is 270 rupees -
LSEG data
    ** Stock extends YTD losses to ~16%; it rose 3% in 2022
    

 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com))