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Bandhan Bank - High Earnings Visibility On Back Of Continued MFI Dominance: Nirmal Bang

Bandhan Bank - High Earnings Visibility On Back Of Continued MFI Dominance: Nirmal Bang

A branch of Bandhan Bank Ltd. in the Prabhadevi area of Mumbai, India. (Photo: BloombergQuint)
A branch of Bandhan Bank Ltd. in the Prabhadevi area of Mumbai, India. (Photo: BloombergQuint)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Bandhan Bank Ltd. enjoys a dominant position in the Indian micro-finance industry.

Having maintained 20% market share over the last four years, we believe that Bandhan Bank is strongly positioned to gain in an industry which is expected to grow at 15% compound annual growth rate over FY21-26E.

The bank’s loans have grown at a 30% CAGR over FY17-20, backed by very high-quality and granular growth in deposits.

While micro-finance is expected to continue on the strong growth trajectory for the bank, we expect non-micro-finance segments to grow at a higher rate given the management’s vision 2025.

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Nirmal Bang - Bandhan Bank-Initiating Coverage-18 December 2020.pdf

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