Bandhan Bank jumps up

Bandhan Bank is on a good steed today. It opened at Rs558.40, going to hit an intraday high and low of Rs586 and Rs.558.40 respectively. It has outperformed the sector by 3.5% currently.

The market is enthused with its Q2FY20 performance and there is a cautious optimism that maybe all that was bad is finally behind.

YoY numbers look very good as this quarter reflects the merged performance with Gruh Finance. And that explains why its net profit is showing a huge 99% (YoY) jump at Rs.972 crore and NII rose 42% at Rs.5129 crore. EBITDA rose 50% at Rs.1308 crore.

In terms of asset quality, Gross NOA was down from 2.20% to 1.76% and Net NPA remained flat at 0.56% (QoQ).

The company expects H2Fy20 to be better as seasonally the second half has always been the better performer. Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank said, “Having completed the merger in record time, we now look forward to enhancing the Housing Loan business with the expertise of the well experienced team and the well tested model coupled with our large distribution network and customer base.”