InvestorQ : Despite the RBI concession, why is Bandhan Bank down so sharply in the last few days? Is the stock worth accumulating?
Anu Biswas made post

Despite the RBI concession, why is Bandhan Bank down so sharply in the last few days? Is the stock worth accumulating?

Answer
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Neelam Naik answered.
7 months ago


Shares of Bandhan Bank slipped by over 7% to Rs.370 on Feb 28, despite the RBI lifting restrictions on the bank from opening new branches. Bandhan Bank is close to its all time low and is down nearly 50% from its 2018 peak levels. The stock has already fallen 27% thus far in the calendar year 2020. Analysts have not been too happy with the lifting of regulatory restrictions on opening of branches as the real problems are to with the asset mix of the bank. The fundamental worry pertains to over-leverage in core markets of eastern India; inability to diversify from microfinance and a major concentration risk. As of now, geographic concentration in operations and exposure to local socio-political risks inherent in the micro loan business remains the biggest challenge for Bandhan Bank.