{"id":1004,"date":"2020-05-14T03:50:20","date_gmt":"2020-05-14T03:50:20","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=1004"},"modified":"2020-07-03T12:10:58","modified_gmt":"2020-07-03T12:10:58","slug":"will-focus-more-on-secured-loans-as-it-looks-to-diversify-loan-book-says-bandhan-banks-chandra-shekhar-ghosh","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2020\/05\/14\/will-focus-more-on-secured-loans-as-it-looks-to-diversify-loan-book-says-bandhan-banks-chandra-shekhar-ghosh\/","title":{"rendered":"Will focus more on secured loans, as it looks to diversify loan book says Bandhan Bank\u2019s Chandra Shekhar Ghosh"},"content":{"rendered":"

Update\u00a0on the Indian Equity Market:<\/strong><\/span><\/p>\n

On Wednesday, NIFTY closed in the green at 9,383 (+2.0%). Top gainers in NIFTY50 were ZEEL
\n(+7.7%), Axis Bank (+7.0%) and ULTRACEMCO (+6.4%). The top losers were Nestle (-5.2%), Sun
\nPharma (-2.2%) and Bharti Airtel (-1.1%). Sectoral gains were supported by Banks. Top sectoral
\ngainers were PSU Banks (+6.1%), Bank (+4.1%) and PVT Bank (+3.9%) and sectoral losers were
\nPharma (-1.1%) and FMCG (-0.7%).<\/p>\n

Excerpts of an interview with Mr. Chandra Shekhar Ghosh, CEO, Bandhan Bank Ltd with Financial<\/strong><\/span>
\nExpress dated 13 th May 2020:<\/strong><\/span><\/p>\n

\u25cf Bandhan Bank expects around four weeks could be needed for normalisation of its
\nmicrofinance collections after the countrywide lock-down is lifted
\n\u25cf For microloan, 100% loan moratorium in value opted for April as they could not meet their
\nmicrofinance borrowers for collections due to the lock down.
\n\u25cf Around 79% of their microfinance borrowers have an average deposit balance of around Rs
\n3,070, which is equivalent to over four weekly instalments.
\n\u25cf Around 87% of their housing loan EMIs had come in April, while 65% (in value) of SME
\ninstalments had come during the month. Around 41% (in value) of NBFC-MFI\u2019s instalments
\nhad been paid.
\n\u25cf They have started operations in microfinance business with opening offices in the green
\nzones across the country. They have disbursed some microfinance loans, though the amount
\nis very small.
\n\u25cf They will disburse more loans to micro-credit customers if they need because they know
\ntheir credit history for a long time. They have not yet started fresh disbursement in the non-
\nmicro-credit sector (after the lock down is imposed).
\n\u25cf After restarting the operations, customers will look into their cash flow conditions.
\nDepending on that they will take a call on fresh loans.
\n\u25cf The faster the lock down is lifted, the faster they will get back to the pre-lockdown period in
\nterms of collections from different sectors. Until that happens there will be requirements for
\nsupports from the RBI and the government. The loan moratorium has helped.
\n\u25cf Going forward, they would like to go for more diversification of their loan book, more
\nsecured loan book than the current book.
\n\u25cf As of now, around 62% of their loan book is micro-credit. They would like to be more focus
\non affordable housing and MSME sectors. Also, they would like to go for more geographic
\nexpansion across the country.<\/p>\n

Consensus Estimate: (Source: market screener and investing.com websites)<\/strong><\/span><\/p>\n

\u25cf The closing price of Bandhan Bank Ltd was \u20b9 254\/- as of 13-May-2020.\u00a0 It traded at 2.3x\/ 1.9x
\nthe consensus earnings estimate of \u20b9 111 \/135 for FY21E\/22E respectively.
\n\u25cf The consensus price target of Bandhan Bank Ltd is \u20b9 316\/- which trades at 2.3x the book value of
\n\u20b9 135\/-<\/p>\n

Disclaimer: The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisers to determine the merit, risks, and suitability of the information provided.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Update\u00a0on the Indian Equity Market: On Wednesday, NIFTY closed in the green at 9,383 (+2.0%). Top gainers in NIFTY50 were ZEEL (+7.7%), Axis Bank (+7.0%) and ULTRACEMCO (+6.4%). The top losers were Nestle (-5.2%), Sun Pharma (-2.2%) and Bharti Airtel (-1.1%). Sectoral gains were supported by Banks. Top sectoral gainers were PSU Banks (+6.1%), Bank […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[259,4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1004"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1004"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1004\/revisions"}],"predecessor-version":[{"id":1157,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1004\/revisions\/1157"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}