Bandhan Bank tanks ~9% on getting Rs 801 crore bid from ARC

22 Dec 2022 , 01:31 AM

Bandhan Bank’s shares fell nearly 9% to Rs223.50 in intraday trade on Thursday after the company announced that it had received a binding bid of Rs801 crore from an asset reconstruction company (ARC) for the written-off portfolio with an outstanding of Rs8,897 crore.

At around 1.15 PM, the counter was trading 5.06% lower at Rs230.85, against the previous close of Rs243.15 on NSE. In the last six months, the counter has fallen nearly 20%, while it has plunged about 10% so far in FY23.

Bandhan Bank will sell Rs8,900 crore in written-off loans (MFI) to ARC/others for Rs800 crore, representing a 9% recovery. This is the second positive NPL-recovery event after CGFMU received Rs920 crore, with another Rs1,500-2,000 crore expected in 1HFY24.

Bandhan Bank reported a net profit of Rs209 crore in Q2FY23, as compared to a loss of Rs3,009 crore the previous year. In the September quarter, the bank made Rs1,280 crore in provisions, compared to Rs5,614 crore the previous year. Net interest income increased 13.3% to Rs2,193 crore.

For feedback and suggestions, write to us at [e-mail]