Thank you for sharing your analysis on Bandhan Bank. It seems like you have a good understanding of the bank’s financials and provisioning requirements.
Regarding your question on the accounting treatment of the recovery from CGMFU, it depends on the nature of the recovery. If classified as an exceptional item, it would flow through the profit and loss statement. However, if it is classified as a regulatory or statutory adjustment, it would flow through the balance sheet as a provision reduction.
It’s always good to be conservative in your estimates, and it seems like you have taken a conservative approach in your provision estimates for Q3. The expected recovery from Assam relief is also a positive development, but as you mentioned, it’s not yet fully confirmed.
Overall, it’s good to see that you are keeping a close eye on the bank’s financials and are willing to wait and watch before making any projections or predictions.
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