Bandhan Bank shares fell over 6% to Rs 228.40 on Thursday after the bank informed stock exchanges that it has received a binding bid of Rs 801 crore from an Asset Reconstruction Company (ARC) for its written-off portfolio. The bank received the offer on a security receipts consideration basis, for the written-off portfolio with an outstanding of Rs 8,897 crore. The bank said, “it shall go for bidding as per the Swiss challenge method and the decision of sale shall be taken as per extant guidelines governing the Swiss challenge method and the relevant policy of the bank.”
Bandhan Bank shares opened at Rs 247.30, over 1% up from its previous close. The shares were trading at Rs 13.40 down from Rs 229.65. Its shares touched a 52-week high of Rs 349.50 on May 17, 2022, and a low of Rs 209.45 on November 22, 2022. It has fallen more than 9% in the past year and over 18% in the last six months. At the current market price, it has a total market capitalization of Rs 36,992.61 crore. It touched an intraday low of Rs 223.55 and a high of Rs 248.65. On Wednesday, the company’s shares closed at Rs 243.05.
During the second quarter of the current fiscal, the bank wrote off microfinance loans (mostly group loans) worth around Rs 3,500. Its net profit for the second quarter of FY23 fell 76% on a quarter-on-quarter basis due to higher provisions as it wrote off microfinance loans. The bank reported a net profit of Rs 209.3 crore during Q2FY3, compared with a net profit of Rs 886.5 crore in the previous quarter. At the end of the second quarter of the current fiscal, the bank’s gross non-performing assets (NPAs), in absolute terms, stood at Rs 6,853.85 crore, witnessing a fall of 21.79% year-on-year.
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