Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>In this insight, we take a look at the Potential ADDs/DELETEs for the BSE SENSEX, 100, and 200 Indices in the December 2023 Rebalance.</li>
<li>At present, I do not see any changes for the SENSEX index. For the BSE 100 and BSE 200 indices I see six and five changes respectively.</li>
<li>Some of these changes are different from those expected in my last insight. However, the changes expected in this insight will be my final expectations for the December 2023 Rebalance.</li>
</ul>


In this insight, we take a look at the Potential ADDs/DELETEs for the BSE SENSEX, 100, and 200 Indices in the December 2023 Rebalance.
At present, I do not see any changes for the SENSEX index. For the BSE 100 and BSE 200 indices I see six and five changes respectively.
Some of these changes are different from those expected in my last insight. However, the changes expected in this insight will be my final expectations for the December 2023 Rebalance.


Quiddity Leaderboard BSE/​​​​SENSEX Dec 23: Bandhan Bank Could Underperform State Bank

India BFSI - Long-Short - Equity Research Analyst

Raj S, CA, CFA

Artoval Advisors

Art’o’val stands for Art of Valuation. Artoval Advisors LLP is a professionally run advisory firm catering to various financial advisory services including Valuation, Investment Research, Training, Accounting, CFO Services and other ancillary services.

We are passionate about what we do and strongly believe in working with our clients as their extended teams. With Artoval Advisors as their trusted partner, our clients find it easy to achieve efficiency in service delivery without compromising on quality.

True Art of Valuation

Equity Bottom-Up

<ul>
<li>In its recent result, <a href="https://www.smartkarma.com/entities/bandhan-bank-ltd" target="_blank" data-smartkarma-citation="entities:26705:1" rel="noopener">Bandhan Bank Ltd (BANDHAN IN)</a> did not report the kind of improvement in asset quality in its core Microfinance segment that we were hoping to see.</li>
<li>Fresh slippages into overdue accounts did not slow down as anticipated; NPA levels remained elevated; Loan growth is below the target run-rate.</li>
<li>We anticipate the recovery to be drawn out, and hence suggest keeping patience. But  we maintain our long-term valuation of Bandhan Bank unchanged at 2.1x FY25e P/BV, implying +56% upside.</li>
</ul>


In its recent result, Bandhan Bank Ltd (BANDHAN IN) did not report the kind of improvement in asset quality in its core Microfinance segment that we were hoping to see.
Fresh slippages into overdue accounts did not slow down as anticipated; NPA levels remained elevated; Loan growth is below the target run-rate.
We anticipate the recovery to be drawn out, and hence suggest keeping patience. But  we maintain our long-term valuation of Bandhan Bank unchanged at 2.1x FY25e P/BV, implying +56% upside.


Bandhan Bank: Not Yet, Not Yet! (2Q24 Update)

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Bandhan reported a sequential improvement in credit growth,with advances growing at 12/4% YoY/QoQ.</li><li>This was led by the EEB segment growing at 5% QoQ (flat YoY) and the nonEEB book growing healthily at 28/3% YoY/QoQ.</li><li>Disbursements rebounded after a seasonally weak Q1 and grew by 26/75% YoY/QoQ. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bandhan reported a sequential improvement in credit growth,with advances growing at 12/4% YoY/QoQ.This was led by the EEB segment growing at 5% QoQ (flat YoY) and the nonEEB book growing healthily at 28/3% YoY/QoQ.Disbursements rebounded after a seasonally weak Q1 and grew by 26/75% YoY/QoQ. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>We visit the 'City of Joy,' Kolkata, to understand the state of the industry, focusing on microfinance and the status of lenders concentrated in the region.</li>
<li>Multiple factors argue for a cyclical bottom for lenders operating in West Bengal and Assam. </li>
<li>We have been positive on <a href="https://www.smartkarma.com/entities/bandhan-bank-ltd" target="_blank" data-smartkarma-citation="entities:26705:1" rel="noopener">Bandhan Bank Ltd (BANDHAN IN), </a>but it is a play on cyclicality rather than a complete turnaround &amp; transformation of its habits.</li>
</ul>


We visit the 'City of Joy,' Kolkata, to understand the state of the industry, focusing on microfinance and the status of lenders concentrated in the region.
Multiple factors argue for a cyclical bottom for lenders operating in West Bengal and Assam. 
We have been positive on Bandhan Bank Ltd (BANDHAN IN), but it is a play on cyclicality rather than a complete turnaround &amp; transformation of its habits.


Postcard from Kolkata | Can Old Habits Die Easy?

<ul><li>Bandhan reported credit de-growth of ~5.5% QoQ, which was led by a slowdown in the EEB segment (impacted by elevated slippages and seasonal slowdown) and a large repayment of one short-term loan to the tune of ~Rs 2,150 Cr in the retail segment.</li><li>Total Disbursements de- grew sharply by ~54% QoQ, led by a 62% QoQ dip in EEB disbursements.</li><li>In line with our expectations, NII growth was flat YoY/QoQ. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bandhan reported credit de-growth of ~5.5% QoQ, which was led by a slowdown in the EEB segment (impacted by elevated slippages and seasonal slowdown) and a large repayment of one short-term loan to the tune of ~Rs 2,150 Cr in the retail segment.Total Disbursements de- grew sharply by ~54% QoQ, led by a 62% QoQ dip in EEB disbursements.In line with our expectations, NII growth was flat YoY/QoQ. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bandhan Bank Ltd. - Weak Quarter, Growth Likely to Improve Going Forward!

India

Bandhan Bank Limited operates as a commercial bank. The Bank provides accounts checking, savings deposits, money market, mortgage, and term loans services, as well as card facilities and Internet banking services. Bandhan Bank serves customers in India.

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Bandhan Bank Ltd (BANDHAN IN)

Quiddity Leaderboard BSE/SENSEX Dec 23: Bandhan Bank Could Underperform State Bank

The BSE SENSEX and BSE 100 index changes for Dec 23 could be announced in a few days. This might be good time to revisit Quiddity's final...

Janaghan Jeyakumar, CFA

Bandhan Bank: Not Yet, Not Yet! (2Q24 Update)

We anticipate the turn-around story of Bandhan Bank to be more drawn out given this result. We retain our Bullish stance, continuing from our...

Raj S, CA, CFA

Bandhan Bank Ltd - Asset Quality Weak

Bandhan reported a sequential improvement in credit growth,with advances growing at 12/4% YoY/QoQ. This was led by the EEB segment growing at 5%...

Axis Direct

Postcard from Kolkata | Can Old Habits Die Easy?

The microfinance industry and lenders in West Bengal and Assam may be reaching a cyclical bottom, with Bandhan Bank Ltd as a potential play on this...

Pranav Bhavsar

Bandhan Bank Ltd. - Weak Quarter, Growth Likely to Improve Going Forward!

Bandhan reported credit de-growth of ~5.5% QoQ, which was led by a slowdown in the EEB segment (impacted by elevated slippages and seasonal slowdown)

Axis Direct

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Quiddity Leaderboard BSE/​​​​SENSEX Dec 23: Bandhan Bank Could Underperform State Bank

The BSE SENSEX and BSE 100 index changes for Dec 23 could be announced in a few days. This might be good time to revisit Quiddity's final...

Janaghan Jeyakumar, CFA

Bandhan Bank: Not Yet, Not Yet! (2Q24 Update)

We anticipate the turn-around story of Bandhan Bank to be more drawn out given this result. We retain our Bullish stance, continuing from our...

Raj S, CA, CFA

Bandhan Bank Ltd - Asset Quality Weak

Bandhan reported a sequential improvement in credit growth,with advances growing at 12/4% YoY/QoQ. This was led by the EEB segment growing at 5%...

Axis Direct

Postcard from Kolkata | Can Old Habits Die Easy?

The microfinance industry and lenders in West Bengal and Assam may be reaching a cyclical bottom, with Bandhan Bank Ltd as a potential play on this...

Pranav Bhavsar

Bandhan Bank Ltd. - Weak Quarter, Growth Likely to Improve Going Forward!

Bandhan reported credit de-growth of ~5.5% QoQ, which was led by a slowdown in the EEB segment (impacted by elevated slippages and seasonal slowdown)

Axis Direct

Quiddity Leaderboard BSE/SENSEX Dec 23: Bandhan Bank Could Underperform State Bank