Affordable housing business likely to boost outlook for Bandhan Bank

Impact of RBI restriction on branch expansion offset by deposit base

After months of subdued sentiment, recent developments suggest Bandhan Bank's investors can expect better times ahead.

A slash in the goods and services tax (GST) from 8 per cent to 1 per cent on affordable housing — announced earlier this week — has provided some relief to investors. The development should provide an upward thrust to the recently approved acquisition of Gruh Finance — an affordable housing arm of HDFC.

Subdued demand in the real estate sector had made investors pessimistic about growth of the expensive acquisition by Bandhan. “With lower GST, demand should improve in affordable housing. This is likely to