Seems entire sector is out of the GNPA and Asset Quality issues leaving behind just a Bandhan Bank
Secondly,
They sold bad loans worth 8900 crores to ARC for 801 crores.
Seems the wheels have come off this one, and stock is back to covid lows. Post aggressive disbursements just post covid. Loans coming back to bite them when the sector is recovering…
Key lesson for me through this case study: Stay open to evolving facts and be extra careful when things go wrong in banks. As often we don’t know the extent of black hole in asset quality.
Disc: invested in Arman & Ujjivan Fin services. Tracking Bandhan as a case study. Views can change is situation evolves (Be open like 1.5 years ago on aggressive lending).
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