InvestorQ : Why has the stock of Bandhan Bank been rallying so rapidly?
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Why has the stock of Bandhan Bank been rallying so rapidly?

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Deepa Salunkhe answered.
9 months ago
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The stock of Bandhan Bank stock surged 8% on Monday and is static on Tuesday to touch a price of Rs342. This was on the back of a solid improvement in asset quality in the March 2022 quarter. For instance, the Gross NPAs fell by a full 435 bps to 6.46% on a yoy basis. For the Q4FY22, the net interest income or NII was up 44.6% yoy at Rs2,540 crore. Bandhan Bank is a licensed bank that larger caters to the microfinance segment in East India.

There was more of good news in store for the stock. Net profit was up 19-fold at Rs1,902 crore in Q4FY22, largely triggered by the expansion of the net interest margins or NIMs to a healthy level of 8.7%. At the same time, the provisions for bad and doubtful debts fell sharply in the quarter. Bandhan Bank has raised guidance for earnings growth for fiscal years FY23 and FY24 to 23% and 17% respectively, on the back of lower credit costs.
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