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

Thematic (Sector/Industry)

<div>
<p>The objective of "The Narrative" is to aid us in assessing management commentary, which we can further connect with ground reality via primary checks, aiding us in identifying key catalysts that could be potential drivers of stock returns. </p>
</div>
<div>
<p>For the narrative, we will be covering commentary on Operating environment &amp; outlook, Business performance, Collection &amp; Credit Awareness, Asset Quality &amp; Restructuring, Liability franchise &amp; deposits, Digital banking, Future business drivers &amp; new launches</p>
</div>
<p>Companies covered in this Insight include <a href="https://www.smartkarma.com/entities/au-small-finance-bank-limited" target="_blank" data-smartkarma-citation="entities:24196:1" rel="noopener">AU Small Finance Bank Limited (AUBANK IN)</a> / <a href="https://www.smartkarma.com/entities/ujjivan-small-finance-bank-ltd" target="_blank" data-smartkarma-citation="entities:28443:1" rel="noopener">Ujjivan Small Finance Bank (USFB IN)</a> / <a href="https://www.smartkarma.com/entities/equitas-small-finance-bank-ltd" target="_blank" data-smartkarma-citation="entities:28834:1" rel="noopener">Equitas Small Finance Bank (ESFB IN)</a></p>


The objective of "The Narrative" is to aid us in assessing management commentary, which we can further connect with ground reality via primary checks, aiding us in identifying key catalysts that could be potential drivers of stock returns. 


For the narrative, we will be covering commentary on Operating environment &amp; outlook, Business performance, Collection &amp; Credit Awareness, Asset Quality &amp; Restructuring, Liability franchise &amp; deposits, Digital banking, Future business drivers &amp; new launches

Companies covered in this Insight include AU Small Finance Bank Limited (AUBANK IN) / Ujjivan Small Finance Bank (USFB IN) / Equitas Small Finance Bank (ESFB IN)

The Narrative | Q1 FY22 | India Small Finance Banks - AUBANK, USFB, ESFB

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Equity Bottom-Up

<p>Bandhan Bank Ltd. (Bandhan) results were above our expectations backed by improved operating performance and NIMs rebounding to normalized levels. The disbursements were impacted due to the regional lockdowns, resulting in a run-off in the loan book on a sequential basis, which was down 8% QoQ. The share of EEB (MFI loans) increased from 64% in Q1FY21 to 66% in Q1FY22. However, the share of group lending decreased from 61% in Q1FY21 to 58% in Q1FY22, in line with the bank’s strategy to de-focus on group lending and shift towards Individual EEB loans.</p><p>We maintain a BUY rating on the stock with a target price of Rs 350/share, implying an upside of 20% from CMP.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Bandhan Bank Ltd. (Bandhan) results were above our expectations backed by improved operating performance and NIMs rebounding to normalized levels. The disbursements were impacted due to the regional lockdowns, resulting in a run-off in the loan book on a sequential basis, which was down 8% QoQ. The share of EEB (MFI loans) increased from 64% in Q1FY21 to 66% in Q1FY22. However, the share of group lending decreased from 61% in Q1FY21 to 58% in Q1FY22, in line with the bank’s strategy to de-focus on group lending and shift towards Individual EEB loans.We maintain a BUY rating on the stock with a target price of Rs 350/share, implying an upside of 20% from CMP.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bandhan Bank: Asset Quality Stress To Persist In Near-Term

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

<p>About the stock: Bandhan Bank was incorporated in 2015 as RBI granted a universal banking license. The bank has a strong presence in eastern and northeastern India with MFI loans being its forte.</p><ul><li>Total 66% of loans are from emerging enterprise business (EEB)</li><li>Also, 1152 branches in 34 states, UTs and total customer base of 2.3 crore</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

About the stock: Bandhan Bank was incorporated in 2015 as RBI granted a universal banking license. The bank has a strong presence in eastern and northeastern India with MFI loans being its forte.Total 66% of loans are from emerging enterprise business (EEB)Also, 1152 branches in 34 states, UTs and total customer base of 2.3 croreContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bandhan Bank: Weak Performance; Still Time to Recover

<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. 


<p>COVID 3.0 continues to pose risks in the normalization of Bandhan's business. We maintain a BUY rating on the stock with a target price of Rs 355/share, implying an upside of 11% from CMP.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

COVID 3.0 continues to pose risks in the normalization of Bandhan's business. We maintain a BUY rating on the stock with a target price of Rs 355/share, implying an upside of 11% from CMP.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bandhan Bank: Business Momentum and Collections Take a Hit!

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)

The Narrative | Q1 FY22 | India Small Finance Banks - AUBANK, USFB, ESFB

Companies covered in this Insight include AU Small Finance Bank Limited (AUBANK IN) / Ujjivan Small Finance Bank (USFB IN) / Equitas Small Finance...

Pranav Bhavsar

Bandhan Bank: Asset Quality Stress To Persist In Near-Term

We maintain a BUY rating on the stock with a target price of Rs 350/share, implying an upside of 20% from CMP. Bandhan Bank results were above our...

Axis Direct

Bandhan Bank: Weak Performance; Still Time to Recover

Bandhan Bank was incorporated in 2015 as RBI granted a universal banking license. The bank has a strong presence in eastern and northeastern India...

ICICI Securities Limited

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

Bandhan Bank: Business Momentum and Collections Take a Hit!

COVID 3.0 continues to pose risks in the normalization of Bandhan's business. We maintain a BUY rating on the stock with a target price of Rs 355...

Axis Direct

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)