BANDHAN BANK : Bandhan Bank Q4 numbers mirror the stress on it | Stock Aaj Or Kal

BANDHAN BANK : Bandhan Bank Q4 numbers mirror the stress on its books; the worst isn't over

“Well, we all knew Bandhan Bank's asset quality will be hit hard given its presence in West Bengal and Assam. Asset quality stress will remain elevated in the first quarter as well and more provisioning will be needed on the GNPA,” said Jyoti Roy, senior analyst at Angel Broking. “PCR dropped from 66.2 percent in Q3 of FY21 to 48.5 percent in Q4. So the bank will need to shore up the PCR,” Roy said.

The COVID second wave can be disastrous for the banking sector and Bandhan is not an exception.  Bandhan has provided well for the COVID shock but the unpredictable nature of the pandemic in this round is a major risk factor. The consensus among analysts is that Bandhan could see stress at an elevated level at least in the next two quarters. (Negative)