Portions of Bandhan Bank saw weighty selling in intra-day exchange on Tuesday, with the stock falling almost 8% to hit a 52-week low. 182.20 on the BSE, despite the fact that BSE Bankex constituents were largely unchanged.
The stock of the private sector lender has lost 14.25% in three sessions, making it the worst performer on the Nifty Bank index. Shares in Bandhan Bank fell to their lowest point since April 2020. On March 25, 2020, it reached a record low of 152.35.
Significant volumes of over 17 million shares today, more than twice the 6-month average daily trading volume of over 8 million shares, supported the decline in trading.
According to New Generation Bank, which has its headquarters in Kolkata, the primary causes of the decline in NII were an increase in the cost of funds and a higher reversal of interest income.
The lender’s net interest margin for the quarter was 6.5%, down from 7% in the prior quarter. During the quarter, Bandhan Bank sold off 8,897 crores of loans for a total of 801 crores, of which 387 crores were issued as security receipts.
With the report of starting patterns and improvements, the administration of Bandhan Bank said, they are sure that the final quarter will see a decent improvement in the bank’s exhibition.
According to Brokerage MK Global, Bandhan Bank may attract alpha-seeking investors if it reports better results in the fourth quarter than in the third. Bandhan Bank stock has a “Buy” call from the brokerage.
Bandhan Bank remains under Kotak Institutional Equities’ “Buy” rating with a revised target of 250-270.
As a result of normalizing credit costs, higher NIM, and asset growth, Nuwama Institutional Equities recently stated that the bank’s earnings and valuations have bottomed out and could rebound in FY24.
Nuwama went on to say that the bank’s long-term earnings visibility from business transformation is low because it moves away from its core competence and into areas where it faces competition.
The stock is rated “Hold” by the brokerage and has a target price of Rs. 265.
The shares of Bandhan Bank ended the day down 5.33%. 187.25 points on Tuesday, making it its third season in a row of defeats.