Bandhan Bank Outlook: There is slight fluctuation in the shares of banking sector giant Bandhan Bank today, but it has a chance to earn 30 percent profit in the coming days.
Bandhan Bank Outlook: Banking sector’s giant bank Bandhan Bank’s shares are showing slight fluctuations today, but it has a chance to earn 30 percent profit in the coming days. Brokerage firm ICICI Securities has fixed a target price of Rs 390 per share for investing in it, which is about 30 percent more than the current price. Right now its price is Rs 302.50 per share (at the time of writing the news) on NSE. The brokerage firm has retained its buy rating.
The Assam government has allocated Rs 2500 crore in this year’s budget for microfinance incentives and relief package. Bandhan Bank has not included the Assam Relief Recovery Benefit in its forecast for the provisioning requirement. Apart from this, the December 2021 quarter was better for the bank. In such a situation, the brokerage firm believes that the improvement in the collection efficiency will strengthen the position of the bank.
Tax Harvesting: Better way to reduce tax liability on equity, adjust loss along with profit
Last quarter collection efficiency picks up
The Assam government has allocated Rs 2500 crore under the Assam Microfinance Incentive and Relief Package in the state budget for the financial year 2022-23, i.e. loans worth Rs 2500 crore will be waived. Last year, in the budget of the current financial year 2021-22, the need for support of Rs 7500 crore was told. The Assam government has cut it. Since Bandhan Bank’s microloan portfolio has Rs 5980 crore in Assam. In the first nine months of the current financial year, the bank has disbursed loans worth Rs 1660 crore in Assam. Due to this, it is expected to benefit from the decision of the Assam government. The collection efficiency was 82 per cent in September-December which increased to 96 per cent in the next quarter i.e. October-December 2021.
Strong up to 20 percent this year, now there is a possibility of 30% more bounce
Bandhan Bank is showing slight volatility today but so far this year it has strengthened up to 20 per cent. Right now its price is Rs 302.50 on NSE, which according to market experts can reach Rs 390, that is, investors can earn up to 30 percent profit by investing at the current price. Talking about its 52-week upper and lower level, last year on 24 March 2021, it was at a high of Rs 371.00 on NSE and on 27 December 2021 it was at a low of Rs 229.55.
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