Bandhan Bank rose 3.5% in morning trade on March 31, 2023. According to reports, this comes after the bank announced the sale of Rs 2,614 crore ARC at a discount. Recently, Bandhan Bank shares hit a three-year low, returning 7.54% last week. The stock touched a three-year low of Rs 185.45 on Tuesday amid heavy volume-based selling.
The recent price was close to its all-time low of Rs 152, last seen on March 25, 2020, during the height of the Covid-19 pandemic. The stock has slumped 23% in the past two months after the bank reported a 66.2% year-on-year drop in its December quarter (Q3FY23) profit to Rs 290.6 crore year-on-year net interest income (NII) fell 2.1% year-on-year to Rs 2,080.4 crore.
The bank said that the decline in NII was mainly due to higher interest income reversals and higher funding costs. The bank’s net interest margin was 6.5% in the quarter, compared with 7% in the previous quarter. During the quarter, banks sold Rs 8,897 crore of cancelled loans with a total value of Rs 801 crore, of which Rs 387 crore was issued as securities receipts. Since the beginning of the year, the stock has returned 16.61%.
As such, the management focuses on overcoming short-term challenges and working on a long-term strategy for the bank, advising investors to consult a SEBI-registered financial advisor before considering any equity positions.