Bandhan Bank declared a massive loss in Q2FY22 on the basis of accelerated provisioning. The breakup of NPAs indicated that the highest level of distress is in the MFI sector with a concentration centred on West Bengal and Assam.
The stock market reacted with disappointment. Some analysts held onto Buy and Hold recommendations despite a promise of more near-term pain. Every analyst has cut the earnings estimates however. The management believes the worst is over, and the trend is improving. The bank said collection efficiency has increased.
The bank declared a net loss of Rs 3,008 crore, with a massive