Today I gonna share my favourite
pick in banking sector. It is a newbie in stock market but it has a solid
potential in coming future. And this bank started as a micro-finance company in 2001, received banking
licence by Reserve Bank of India in 2014. It became the 8th largest bank in
India by market capital and it’s Headquarters
in Kolkata.
And let’s get stared. Yes
you guessed it right it is BANDHAN BANK. It got listed on Mar 27, 2018. And you
might ask me why I chosen this stock in my long term bet or in my multi-bagger
list come with me will discuss in details. Don’t forget to follow me on Insta
@OffInvestor and Twitter @OffInvestor.
BANDHAN BANK in detail
Bandhan Bank Products:
- Retail loans including micro loans, SME loans and small enterprise loans
- Savings accounts, current accounts and a variety of fixed deposit accounts
- Other banking products and services including debit cards, internet banking, mobile banking, EDC-POS terminals, online bill payment services. And currently, the bank doesn’t offer products third-party products such as insurance and mutual funds.
Bandhan Bank Strengths:
- Operating Model Focused on Serving Under-banked and Under-penetrated Markets (micro-finance)
- Consistent Track Record of Growing a Quality Asset and Liability Franchise
- Extensive, Low Cost Distribution Network
- Provide accessible, simple, cost-effective and innovative financial solutions
- Robust Capital Base
- Maintaining focus on micro lending while expanding further into other retail and SME lending.
Bandhan Bank Weakness:
- Stock is trading at 3.60 times its book value
- Company has low interest coverage ratio.
- Company has a low return on equity of 11.65% for last 3 years.
- Contingent liabilities of Rs.52814.12 Cr.
- Earnings include other income of Rs.1229.28 Cr.
Annual Report for Financial year 2018 here.
Disclaimer: Don't consider as a recommendation from our side, please do our own research or seek financial adviser prior investing.
