Bandhan Bank: Risks haven't subsided, negatives still outweigh positives

Stock trades below its listing pricing, shedding over 22 per cent year-to-date

Last Tuesday, the Reserve Bank of India (RBI) lifted the ban on Bandhan Bank opening new branches. Accordingly, the bank now plans to open 250 branches by the end of CY20. While the news seems to have helped Bandhan’s stock — which is down 2.6 per cent since last Tuesday, versus a 5.3 per cent fall in the Sensex — it is still down by over 22 per cent year-to-date because of concerns over slowing growth and asset quality.

Signs of these were visible in its December quarter (Q3) results. Though still high, growth in assets under management or AUM (excluding