New Delhi: Shares of Bandhan Bank NSE 6.30 % jumped 7 per cent in early trade on Monday on the back of a couple of tailwinds over the counter.
The Assam government’s decision of providing relief as well as incentive for MFI loans will partially address one of the key concerns of its elevated stress pool in Assam. Bandhan Bank, with highest market share in Assam, is naturally bound to benefit from the scheme designed in a way to retain credit culture and promote responsible repayment behaviour.
Also, Reserve Bank of India’s consultative paper on harmonisation of regulations for MFIs subsides the concerns of the bank being subjected to maximum number of lenders or lending rate cap.
The scrip soared 7 per cent to Rs 337.95 on Monday, in a otherwise weak markets. However, the counter was trading at Rs 330.30 at the 9.50 am. BSE Sensex was trading 357.03 points or 0.68 per cent lower at 51,987.42 at the same time. It settled at Rs 316.10 on Friday.
The private lender has been an underperformer in 2021. Shares of Bandhan Bank are down 18 per cent in 2021 so far. However, the counter has gained 11 per cent in the last one month.
Brokerage firm ICICI NSE -1.57 % Securities has maintained buy rating over the lender with a target price of Rs 465. “The Assam government is staying committed to its poll promise, announcing its decision of providing relief as well as incentives for MFI loans. Assam, in particular, has witnessed huge stress build up for the entire MFI industry,” it added.
