Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/bandhan-bank-ltd" target="_blank" data-smartkarma-citation="entities:26705:1" rel="noopener">Bandhan Bank Ltd (BANDHAN IN)</a> is a fine example, reiterating our ability to deliver "qualitative" alpha that is backed with rigorous primary research and channel checks (YTD BANDHAN -26% vs NIFTY at +12%). Our work done on Bandhan stands as a testimony proving our ability to cover channels not just for consumer names but also financials where in spite of wide coverage, primary checks are able to provide the required edge. </p>
<p><strong>Our earlier coverage on Bandhan includes </strong></p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/india-channel-insight-bandhan-hero-bata-nestle" target="_blank" data-smartkarma-citation="insights:49988" rel="noopener">India Channel Insight | Bandhan, Hero, Bata, Nestle</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/bandhan-bank-bandhan-in-pain-in-assam-likely-to-continue" target="_blank" data-smartkarma-citation="insights:50001" rel="noopener">Bandhan Bank (BANDHAN IN) | Pain in Assam Likely to Continue</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/bandhan-bank-bandhan-in-on-ground-narrative-from-assam-and-west-bengal" target="_blank" data-smartkarma-citation="insights:47495" rel="noopener">Bandhan Bank (BANDHAN IN) | On Ground Narrative from Assam and West Bengal</a> </li>
</ul>
<div class="content-highlight">
<p>We again test the waters by speaking to five DSC managers in top districts in West Bengal with an objective to assess collection, lending practices and expected delinquency. </p>
</div>

Bandhan Bank Ltd (BANDHAN IN) is a fine example, reiterating our ability to deliver "qualitative" alpha that is backed with rigorous primary research and channel checks (YTD BANDHAN -26% vs NIFTY at +12%). Our work done on Bandhan stands as a testimony proving our ability to cover channels not just for consumer names but also financials where in spite of wide coverage, primary checks are able to provide the required edge. 
Our earlier coverage on Bandhan includes 


India Channel Insight | Bandhan, Hero, Bata, Nestle 

Bandhan Bank (BANDHAN IN) | Pain in Assam Likely to Continue 

Bandhan Bank (BANDHAN IN) | On Ground Narrative from Assam and West Bengal 


We again test the waters by speaking to five DSC managers in top districts in West Bengal with an objective to assess collection, lending practices and expected delinquency. 


India Financials

Saumya Agarwal

Thematic (Sector/Industry)

<p>The Monetary Policy Committee (MPC) of the RBI, in its June meeting, has kept the policy rates unchanged and decided to continue with the accommodative monetary stance, till the time needed. It has also expanded the scope of the Resolution 2.0 framework for the MSME and individual borrowers impacted by the Covid. Both these decisions are favorable and should help mitigate the stress of the small borrowers</p>

The Monetary Policy Committee (MPC) of the RBI, in its June meeting, has kept the policy rates unchanged and decided to continue with the accommodative monetary stance, till the time needed. It has also expanded the scope of the Resolution 2.0 framework for the MSME and individual borrowers impacted by the Covid. Both these decisions are favorable and should help mitigate the stress of the small borrowers

The RBI Radar: Soft Borrowing Costs + Widened Scope of Resolution, to Boost Recovery

<p>A year into the pandemic, Indian Banks have emerged with better-than- expected Gross NPA levels and huge Covid buffers at end  FY21.  With India's vaccination coverage at ~200 million or ~15% of total population and a sustained decline in daily count of fresh infections, many of the uncertainties are  receding. A downward bias on credit costs is now increasingly likely, and should augur well for Banks.</p>

A year into the pandemic, Indian Banks have emerged with better-than- expected Gross NPA levels and huge Covid buffers at end  FY21.  With India's vaccination coverage at ~200 million or ~15% of total population and a sustained decline in daily count of fresh infections, many of the uncertainties are  receding. A downward bias on credit costs is now increasingly likely, and should augur well for Banks.

Indian Banks- Downward Bias on Credit Costs, as Uncertainties Recede

<div>
<h2>Channel Interactions </h2>
<p><a href="https://www.smartkarma.com/entities/bandhan-bank-ltd" target="_blank" data-smartkarma-citation="entities:26705:1" rel="noopener">Bandhan Bank Ltd (BANDHAN IN)</a>: DSC managers in Bihar, Maharashtra and Karnataka indicate stress likely to remain for a longer period as COVID spreads in the hinterland. </p>
<p><a href="https://www.smartkarma.com/entities/hero-motocorp-ltd" target="_blank" data-smartkarma-citation="entities:2391:1" rel="noopener">Hero Motocorp (HMCL IN)</a>: Dealer health continues to deteriorate. With widespread lockdowns, interest costs for dealers are mounting up. </p>
<p><a href="https://www.smartkarma.com/entities/bata-india-ltd" target="_blank" data-smartkarma-citation="entities:3051:1" rel="noopener">Bata India Ltd (BATA IN)</a> : Early expectations of re-opening remain muted. Normalisation still two quarters away. </p>
<p><a href="https://www.smartkarma.com/entities/nestle-india-ltd" target="_blank" data-smartkarma-citation="entities:13101:1" rel="noopener">Nestle India (NEST IN)</a>: NEST's rural plans may be in trouble. COVID and its impact on premium products could be felt more putting NEST's ambitious plan to expand in rural India. Underperformance unless a major risk-off is likely to continue. </p>
<h2>About India Channel Insight</h2>
</div>
<div>
<p>Our objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets can potentially be signals for larger themes/ideas emerging out of these interactions.  </p>
</div>


Channel Interactions 
Bandhan Bank Ltd (BANDHAN IN): DSC managers in Bihar, Maharashtra and Karnataka indicate stress likely to remain for a longer period as COVID spreads in the hinterland. 
Hero Motocorp (HMCL IN): Dealer health continues to deteriorate. With widespread lockdowns, interest costs for dealers are mounting up. 
Bata India Ltd (BATA IN) : Early expectations of re-opening remain muted. Normalisation still two quarters away. 
Nestle India (NEST IN): NEST's rural plans may be in trouble. COVID and its impact on premium products could be felt more putting NEST's ambitious plan to expand in rural India. Underperformance unless a major risk-off is likely to continue. 
About India Channel Insight


Our objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets can potentially be signals for larger themes/ideas emerging out of these interactions.  


India Channel Insight | Bandhan, Hero, Bata, Nestle

<p>Bandhan Bank, the market leader in micro-finance, has had a very tough FY21 combating the twin frenzy of the Covid pandemic and the elections in the key states of West Bengal and Assam. Both these external shocks have severely disrupted the cashflows of its micro-credit borrowers and severely impacted Bandhan Bank’s asset quality. With the elections now over, it remains to be seen how soon the Covid pandemic abates in India. This will be very crucial for micro-borrowers and for Bandhan Bank to see normalization in collection trends. On its part, Bandhan is diversifying away from the states of West Bengal and Assam and also seeing some incremental improvement in the overdue ( less than 90dpd) buckets .</p>

Bandhan Bank, the market leader in micro-finance, has had a very tough FY21 combating the twin frenzy of the Covid pandemic and the elections in the key states of West Bengal and Assam. Both these external shocks have severely disrupted the cashflows of its micro-credit borrowers and severely impacted Bandhan Bank’s asset quality. With the elections now over, it remains to be seen how soon the Covid pandemic abates in India. This will be very crucial for micro-borrowers and for Bandhan Bank to see normalization in collection trends. On its part, Bandhan is diversifying away from the states of West Bengal and Assam and also seeing some incremental improvement in the overdue ( less than 90dpd) buckets .

Bandhan Bank – Twin Shocks (Covid + Elections) Bring Asset Quality Pain to the Fore

India

Bandhan Bank Limited operates as a commercial bank. The Bank provides accounts checking, savings deposits, money market, mortgage, and term loans services, as well as card facilities and Internet banking services. Bandhan Bank serves customers in India.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Bandhan Bank Ltd (BANDHAN IN)

Bandhan Bank | Postcard from West Bengal

We again test the waters by speaking to 5 DSC managers in top districts in West Bengal with an objective to assess collection, lending practices...

Pranav Bhavsar

The RBI Radar: Soft Borrowing Costs + Widened Scope of Resolution, to Boost Recovery

The RBI decision to continue with the accommodative monetary stance and expanding the scope of Resolution, for MSME and individual borrowers,...

Saumya Agarwal

Indian Banks- Downward Bias on Credit Costs, as Uncertainties Recede

Indian Banks have braved the first wave well and built huge Covid related provisions. With many of the uncertainties receding, there is a downward...

Saumya Agarwal

India Channel Insight | Bandhan, Hero, Bata, Nestle

As always channel checks are an important part of our research. In this insight, we bring you primary insight from channels of Bandhan, Hero, Bata,...

Pranav Bhavsar

Bandhan Bank – Twin Shocks (Covid + Elections) Bring Asset Quality Pain to the Fore

Bandhan Bank has had to combat the twin shocks of Covid pandemic and the Elections in its key states. With the elections now over, abating of the...

Saumya Agarwal

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)