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Why Bandhan Bank shares fall over 14.25% in the last three days. 


Why Bandhan Bank shares fall over 14.25% in the last three days ?

Bandhan Bank stock were heavily sold on Tuesday, with the stock falling more than 5% hitting 52-week low in intraday trade, extending its losses for the third consecutive session. The private bank has been an anomaly in a bank nifty index that has dropped 14.25% in the last three days. Bandhan Bank’s shares have been steadily declining, losing approximately 20% in the last month, over 28% in the last six months, and 36% in the last year.

So what has caused the Bandhan Bank fall in recent time?

The primary reason for the tanking of countries largest micro lender stock has been fall in Net interest margin (NII) because the higher reversal of interest income and also an increase in the cost of funds. The lender’s net interest margin for the quarter was 6.5 % as against 7 % in the previous qtr. The net interest income (NII) fell to Rs. 2,080.4 cr during the third quarter as against Rs. 2,124.7 cr in the same quarter last year. Bandhan Bank’s gross non-performing asset ratio was 7.15% as of Dec 31, compared to 7.19% a qtr ago. During the quarter, the Bank has sold written off loans Rs. 8,897 cr at an aggregate value of Rs. 801 cr.  During the quarter ended December, the bank’s provision surged over 91% on year to Rs 1,541 cr versus Rs. 1,280 cr Q-o-Q and versus Rs. 806 cr on-year. As a result, net profit dropped 66% to Rs 291 cr down 66% on-year.


Dec-22 Sep-22 Jun-22 Mar-22


Total Income

4,840.94 4,249.87 4,385.05 4,835.97 4,120.95
Total Income Growth (%) 13.91 -3.08 -9.32 17.35 12.21
Provisions & Contingencies 1,541.50 1,279.67 642.43 4.72 805.71
Provisions & Contingencies Growth (%) 20.46 99.19 0 -99.41 -85.56
Profit after Tax (PAT) 290.57 209.27 886.5 1,902.34 858.97
PAT Growth (%) 38.85 -76.39 -53.4 121.47
Gross NPA (%) 7.15 7.19 7.25 6.46 10.81
Net NPA (%) 1.86 1.86 1.92 1.66 3.01
Net Profit Margin (%) 6 4.92 20.22 39.34 20.84
Basic EPS (₹) 1.81 1.3 5.5 11.81



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