InvestorQ : With the RBI relaxing the branch opening restrictions on Bandhan Bank, is the stock a good buy at current levels?
indhumathi Sayani made post

With the RBI relaxing the branch opening restrictions on Bandhan Bank, is the stock a good buy at current levels?

Answer
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shrinidhi Rajan answered.
7 months ago


That is correct; Bandhan Bank just got the go ahead from the RBI to expand its footprint. It had been under a branch expansion ban since September 2018 for failing to comply with the RBI regulations on stake reduction as per the agreement. Notwithstanding these advantages, there are scores of investors who are worried about the situation in the Easter and North Easter states. Bandhan Bank has a vast majority of its branches located in Bengal, Bihar, Assam and the rest of the North EAST. That is a bigger concern for the investors. That had resulted in huge bad debts after the CRR and NCR agitations broker out in a big way across the North East and Bengal region. Bandhan Bank has been on a downtrend since then. Even post the RBI removing the strictures, the stock has not been too enthusiastic. Hence the response is likely to be tepid.