Bandhan Bank – in a sweet spot?

My few takes on banking / NBFC

1. Financial industry is backbone of India’s economy and their health/stability is important for economic growth to sustain.
2. Hence these are highly regulated industry
3. RBI is now continuously monitoring them to predict early warning signals and then reduce/mitigate any structural weaknesses that may arise.
4. As per me this is good for long term sustained and stable growth (especially during downturn) of the economy and the banks as well.
5. RBI is also ensuring that there is significant transparency and reasonableness to the charges they avail from clients, especially retail customers, this will show some dip in fee income from penal charges etc.
6. The above points are giving me confidence of investing in low valued/corrected stocks like Bandhan.
7. However don’t think sustainability of very high valuation (Bajaj Finance, for instance) in this segment is possible.
   Bandhan_Bank_13Mar24_Kotak_Inst.pdf (484.8 KB)