29 June 2022
Company Update | Sector: Financials
Bandhan Bank
BSE SENSEX
53,177
S&P CNX
15,850
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CMP: INR276 TP: INR315 (+14%)
Neutral
Assam floods to elongate recovery trajectory
Stress dissolution to moderate; provisioning to remain elevated
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
Financials Snapshot (INR b)
Y/E March
FY22
NII
87.1
OP
80.1
NP
1.3
NIM (%)
7.3
EPS (INR)
0.8
EPS Gr. (%)
-94.3
BV/Sh. (INR)
107.9
ABV/Sh. (INR)
101.1
Ratios
RoE (%)
0.7
RoA (%)
0.1
Valuations
P/E(X)
NM
P/BV (X)
2.6
P/ABV (X)
2.7
BANDHAN IN
1,611
445.3 / 5.7
354 / 230
-12/17/-21
2544
60.0
Bandhan stock has corrected sharply in recent days owing to concerns over its Assam
portfolio as 85-90% of total districts in the state have been affected by severe floods.
As Assam constitutes ~9% of MFI loans and ~8% of total banking units for BANDHAN,
the ongoing flood situation will affect collection trends over the near term.
Its SMA book for Assam and West Bengal stands at 8.5%/8.2% (v/s 46.4%/41.3% in
1QFY22), with restructured assets of INR54.2b (5.8% of loans). We expect the stress
dissolution rate to now moderate.
Our PAT and ABV projections have witnessed sharp swings of -24% to 22% over the
past five quarters. We remain watchful of the near-term impact, though the stock
trades at reasonable valuations of 1.7x FY24E P/BV against its average FY23-24E RoE
of 24%. We maintain our Neutral rating with a revised TP of INR315 per share (2x
FY24E P/BV).
Assam witnesses severe floods; forms 9%/8% of MFI loans/banking units
Assam has witnessed severe floods in recent weeks, which has affected 85-90%
of total districts in the state and impacted the lives of ~3.3m. Total casualties, so
far, stands at 135, almost similar to the 149 casualties witnessed in May-Aug’20.
While Assam has witnessed floods in the past as well, the severity this time has
been quite high v/s prior years and can impact lending operations in the state.
Assam constitutes ~9% of MFI loans and ~8% of total banking units for
BANDHAN.
FY23E
106.6
97.9
41.9
7.5
26.0
NM
129.2
123.1
21.9
2.7
10.6
2.1
2.2
FY24E
140.0
126.0
58.9
7.9
36.6
40.5
159.9
154.6
25.3
3.1
7.6
1.7
1.8
Collection efficiency to take a beating, weekly meetings getting
impacted
Collection efficiency (CE), particularly in Assam, has been severely impacted in
the past due to multiple events such as the CAA agitation, floods, COVID-19
pandemic, etc. CE dropped to as low as 49% in Jun’21. It gradually recovered
and improved to 93% in 4QFY22. The same for the bank improved to 97% from
77% over a similar period. Collections are likely to take a beating due to the
ongoing flood situation. Our industry interaction suggests that weekly meetings
have been impacted and the recovery trajectory will get prolonged.
BANDHAN demonstrated a higher resilience in earlier crises
Historically, BANDHAN has demonstrated higher resilience in dealing with various
crises, and delinquencies have been much lower v/s the industry (refer Exhibit 11-
15). During earlier events, where the customer’s ability to pay or businesses had
got impacted (Cyclone Fani, floods, GST, or demonetization), the incremental loss
rates have been limited. Though CE dropped sharply, the recoveries improved
with a lag. However, when the issue pertains to the willingness or credit culture
(farm loan waiver or Assam agitation), the incremental loss rates have been
higher (3-4% range). The situation in Assam appears grim as the state has been in
recovery mode after the impact posed by the COVID-19 pandemic. We, thus,
remain watchful on near term developments.
Nitin Aggarwal - Research Analyst
(Nitin.Aggarwal@MotilalOswal.com)
Research Analyst: Yash Agarwal
(Yash.Agarwal@motilaloswal.com) |
Vinayak Agarwal
(Vinayak.Agarwal@MotilalOswal.com)
29 June 2022
Investors are advised to refer through important disclosures made at the last page of the Research Report.
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Bandhan Bank
Shareholding pattern (%)
As On
Mar-22 Dec-21 Mar-21
Promoter
40.0
40.0
40.0
DII
4.6
1.9
1.9
FII
34.3
34.6
34.9
Others
21.1
23.5
23.2
FII Includes depository receipts
Stock’s performance (one-year)
The SMA book witnessed a healthy reduction, may rise in the near term
We note that the SMA book across various buckets has witnessed a constant
decline, led by an improving environment, which has supported a gradual recovery.
The SMA book has moderated to 6.5% in 4QFY22 v/s 37.1% in 1QFY22. The SMA
book stands relatively higher for Assam/West Bengal at 8.5%/8.2% (v/s
46.4%/41.3% in 1QFY22). While the recovery has been encouraging, we expect the
SMA book to increase in the near term, which could result in elevated slippages.
Credit cost glide path to get elongated as Assam witnesses higher stress
The MFI business is highly cyclical, which is evident from the fact that credit cost has
seen severe volatility in times of acute stress. We note that the recovery in terms of
reduction in credit cost has also been quick (refer Exhibit 9). Credit cost has been
high (6-8% range) over 4QFY20-1QFY22 and rose to 30% (annualized) in 2QFY22 as
the bank focused on cleaning up its Balance Sheet. Since then, credit cost has
moderated sharply and stood negligible in 4QFY22. We expect the credit cost glide
path to get elongated as potential recoveries, particularly from the Assam relief
scheme, get delayed.
Total stress pool stands ~19% of EEB loans; coverage stands ~59%
Total EEB stress pool stands ~INR119b (19.1% of loans), within which the
restructured book stands at INR48.9b (7.8% of loans). Including Housing loans, the
restructured book stands at INR54.2b (5.8% of loans). The coverage on the total
stress pool stands ~58.5%, which excludes the Assam relief package. The
management expects a recovery of INR30b over 1HFY23 and INR25b from the
CGFMU scheme.
Earnings have witnessed acute volatility
BANDHAN’s earnings have demonstrated acute volatility due to the cyclical nature
of the MFI business. Our PAT and ABV projections have witnessed sharp swings of -
24% to 22% over the past five quarters. This has rendered the stock extremely
volatile to external events and shocks. Exhibit 10 shows how our annual estimates
for key parameters have changed over the past few quarters.
Valuation and view
The performance of the MFI industry has been resilient in recent months, with
assets stress declining and growth trajectory holding strong over 4QFY22. This is
reflected in BANDHAN’s performance as well. Given the ongoing developments in
Assam, we expect the stress dissolution rate to moderate, while the recovery and
ongoing improvement in CE may also get affected. We remain watchful about the
near-term impact, though the stock has corrected sharply by ~20%/15% since its
4QFY22 result/past 3 weeks and trades at reasonable valuations of 1.7x FY24E P/BV
against its average FY23-24E RoE of 24%. We maintain our Neutral rating with a
revised TP of INR315 (2x FY24E P/BV) and will review our estimates after its 1QFY23
result.
29 June 2022
2
 Motilal Oswal Financial Services
Bandhan Bank
Exhibit 1: Loan mix – MFI plus individual EEB constitutes
63% of total loans
11.8%
1.7%
46.8%
Group EEB
Individual EEB
Mortgages
Retail
16.0%
Commerical
Banking
Exhibit 2: Geographical MFI loan mix: Assam constitutes
~9% of MFI loans
West Bengal
31.0%
40.6%
Bihar
Assam
UP
8.5%
9.3% 10.6%
Others
23.7%
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 3: Assam constitutes ~8% of total Banking units at 5,649 units
West Bengal
Bihar
Uttar Pradesh
Assam
Maharashtra
Madhya Pradesh
Rajasthan
Gujarat
Odisha
Karnataka
Others
Source: MOFSL, RBI, Company
18%
30%
3%
3%
3%
4%
5%
6%
11%
8%
9%
The impact of the Assam
floods appears to be higher
in a short timespan
Exhibit 4: The current Assam floods have led to higher casualties in a short timespan
Impact from the Assam floods
Districts impacted
Villages impacted
People impacted (m)
Number of deaths
CY19
(May-August)
30
3,024
5.3
110
CY20
(May-August)
30
5,474
5.8
149
CY22
(May-June)
28
NA
3.3
135
Source: MOFSL, Company
Collection efficiency
witnesses a gradual
recovery till 4QFY22, likely
to take a beating in 1QFY23
Exhibit 5: Collection efficiency trends across key states – Assam to take a beating
Collection efficiency
excluding NPA
Assam
West Bengal
Rest of India
Total
Sep'20 Dec'20 Mar'21
75%
87%
95%
89%
88%
90%
94%
92%
83%
95%
97%
95%
Jun'21 1QFY22 2QFY22 3QFY22 4QFY22
49%
73%
85%
77%
67%
85%
90%
86%
67%
86%
93%
88%
91%
96%
97%
96%
93%
97%
97%
97%
Source: MOFSL, Company
29 June 2022
3
 Motilal Oswal Financial Services
Bandhan Bank
SMA book for Assam
moderates, but is likely to
increase in the near term
due to the flood situation
Exhibit 6: SMA and NPA book across Assam, West Bengal, and the overall bank moderates
over the past few quarters
SMA (1-30)
17.0%
5.1%
19.5%
14.2%
4.4%
2.5%1.6%
4QFY22
Assam
12.7%
2.6%
12.1%
9.3%
2.4%
10.1%
12.0%
2.2% 2.1%
3.9%
4QFY22
SMA (31-60)
SMA (31-90)
NPA (>90 days)
21.8%
1QFY22
26.6%
24.6%
7.8%
1.9%
1.6%
3.0%
4QFY22
1QFY22
1QFY22
West Bengal
Overall Bank
Source: MOFSL, Company
Exhibit 7: Total stress pool within EEB stands ~INR119b
(~19% of loans)
10.2
11.7
48.5
NPA
Restructured
SMA 2
SMA 1
48.9
Exhibit 8: Coverage on the stress pool stands ~59%; expect a
recovery of INR55b, excluding the Assam relief scheme
Coverage
Provisions
Estimated recovery over 1HFY23
CGFMU recovery
INR b
69.7
30.0
25.0
Source: MOFSL, Company
Source: MOFSL, Company
Credit cost has been highly
volatile over the past few
quarters
Exhibit 9: Credit cost trends over the past several quarters
Credit Cost (Annualized)
Source: MOFSL, Company
29 June 2022
4
 Motilal Oswal Financial Services
Bandhan Bank
Four out of five quarters
have seen a double-digit
change in earnings for FY23
Exhibit 10: Change in our FY23 estimates in the past five quarters
FY23E
NII
Change (%)
PPOP
Change (%)
PAT
Change (%)
Loans
4QFY21
115.3
-7.4%
104
-3.2%
55.3
-13.5%
1227.9
-3.8%
GNPA (%)
NNPA (%)
Credit Cost (%)
NIM (%)
RoA
RoE
BV
Change (%)
ABV
Change (%)
EPS
Change (%)
6.0
2.0
2.6
7.7
3.5
24.9
152
-6.7%
141
-9.6%
34.3
-13.6%
1QFY22
110.2
-4.4%
100.7
-3.2%
52.3
-5.4%
1107.2
-9.8%
6.6
1.8
2.8
7.9
3.6
24.9
143
-5.9%
135
-4.3%
32.5
-5.2%
2QFY22
108.9
-1.2%
96.9
-3.8%
44.1
-15.7%
1107.2
0.0%
7.4
1.9
3.5
8.1
3.2
26.8
113
-21.0%
103
-23.7%
27.4
-15.7%
3QFY22
96.5
-11.4%
84.4
-12.9%
35.9
-18.6%
1055.2
-4.7%
8.6
2.3
3.5
7.2
2.6
20.4
118
4.4%
108
4.9%
22.3
-18.6%
4QFY22
99.1
2.7%
89.7
6.3%
43.7
21.7%
1,164.50
10.4%
4.6
1.2
2.7
7.0
2.8
22.8
130
10.2%
125
15.7%
27.2
22.0%
Source: MOFSL, Company
29 June 2022
5
 Motilal Oswal Financial Services
Bandhan Bank
BANDHAN demonstrated higher resilience during earlier crisis
Exhibit 11: 90+ DPD as of Mar’17 caused by the
demonetization (Nov’16)
Demonetization - 90+ DPD
Exhibit 12: 90+ DPD as of Dec’17 caused by the
implementation of GST (Jul’17)
GST - 90+ DPD
5.5%
4.5%
1.5%
9.9%
8.4%
0.4%
BANDHAN
Rest of Industry
Total Industry
Source: MOFSL, Company
BANDHAN
Rest of Industry
Total Industry
Source: MOFSL, Company
Exhibit 13: 90+ DPD as of Mar’18 caused by the farm loan
waiver in UP (Aug’17)
Farm loan waiver in UP - 90+ DPD
Exhibit 14: 90+ DPD as of Sep’19 caused by Cyclone Fani in
Odisha (May’19)
Cyclone in Odisha - 90+ DPD
6.5%
14.3%
4.6%
BANDHAN
Rest of Industry
Total Industry
Source: MOFSL, Company
13.4%
1.0%
BANDHAN
Rest of Industry
6.1%
Total Industry
Source: MOFSL, Company
Despite having the highest
market share in Assam,
BANDHAN outperformed
the industry with regard to
delinquencies during the
agitation in the state
Exhibit 15: 90+ DPD as of Feb’20 due to the disruption caused by the Assam agitation
(Nov’19)
Assam Agitation - 90+ DPD
10.1%
6.2%
3.1%
BANDHAN
Rest of Industry
Total Industry
Source: MOFSL, Company
29 June 2022
6
 Motilal Oswal Financial Services
Bandhan Bank
Story in charts
Exhibit 16: AUM grew by 14% YoY and 13% QoQ
Advances (on book +off book) (INRb)
92%
84%
60% 64%
38% 39%
448 454 642 655 718 743
766 803 870 804 817 880 993
19% 23%
21%
8% 7% 10% 14%
624
YoY (%)
Exhibit 17: MFI loans rose by 7% YoY and 8% QoQ
MFI Loans (INRb)
YoY (%)
386 392 392 401 462 475 498 531 584 532
540 576
2QFY20-1QFY21 growth not comparable due to the merger
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 18: Asset quality ratios improves sharply, with
GNPA/NNPA ratio declining by 435bp/135bp QoQ
GNPA ratio (%)
NNPA ratio (%)
10.8 10.8
7.1 6.8
2.4
2.0
1.7
1.8 1.9 1.5 1.4
0.8 0.6 0.5
1.2
0.6 0.6 0.6
0.4
8.2
6.5
Exhibit 19: Provision coverage ratio improves to ~75.5% in
4QFY22 v/s 50% in 4QFY21
PCR (%)
3.5 3.3 3.0 3.0
1.7
3QFY21 based on pro-forma numbers
Source: MOFSL, Company
3QFY21 based on pro-forma numbers
Source: MOFSL, Company
Exhibit 20: DuPont Analysis: Return ratios to pick up strongly from FY23 onwards
Net Interest Income
Other Income
Total Income
Operating Expenses
Employees
Others
Operating Profit
Core operating Profit
Provisions
NPA
Others
PBT
Tax
RoA
Leverage (x)
RoE
FY18
8.1
1.9
10.0
3.5
1.8
1.7
6.5
6.4
1.0
0.6
0.4
5.5
1.9
3.6
5.4
19.5
FY19
8.9
2.1
11.0
3.6
2.0
1.6
7.4
7.4
1.5
1.3
0.1
6.0
2.1
3.9
4.9
19.0
FY20
8.5
2.1
10.6
3.3
1.8
1.4
7.4
7.2
1.9
0.8
1.1
5.5
1.4
4.1
5.6
22.9
FY21
7.3
2.0
9.4
2.7
1.6
1.1
6.6
6.3
3.8
4.2
-0.4
2.9
0.7
2.1
6.3
13.5
FY22
6.9
2.2
9.1
2.8
1.7
1.1
6.3
6.0
6.2
6.2
0.0
0.1
0.0
0.1
7.3
0.7
FY23E
6.9
2.2
9.2
2.8
1.7
1.1
6.4
6.3
2.7
2.5
0.2
3.7
0.9
2.7
8.0
21.9
FY24E
7.5
2.1
9.6
2.8
1.7
1.1
6.7
6.6
2.5
2.3
0.2
4.2
1.1
3.1
8.1
25.3
29 June 2022
7
 Motilal Oswal Financial Services
Bandhan Bank
Financials and valuations
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Growth (%)
Non-Interest Income
Total Income
Growth (%)
Operating Expenses
Pre-Provision Profit
Growth (%)
Core PPOP
Growth (%)
Provisions (excl. tax)
PBT
Tax
Tax Rate (%)
PAT
Growth (%)
Balance Sheet
Y/E March
Equity Share Capital
Reserves and Surplus
Net Worth
Deposits
Growth (%)
of which CASA Deposits
Growth (%)
Borrowings
Other Liabilities and Prov.
Total Liabilities
Current Assets
Investments
Growth (%)
Loans
Growth (%)
Fixed Assets
Other Assets
Total Assets
Asset Quality
GNPA
NNPA
GNPA Ratio
NNPA Ratio
Credit Cost
PCR (Excl. Tech. write-off)
FY18
48.0
17.7
30.3
26.2
7.1
37.4
32.8
13.1
24.3
35.5
23.8
34.6
3.7
20.6
7.1
34.6
13.5
21.0
FY19
66.4
21.5
45.0
48.3
10.6
55.6
48.7
18.1
37.5
54.2
37.1
55.7
7.4
30.1
10.6
35.2
19.5
45.0
FY20
108.9
45.6
63.2
40.7
15.5
78.7
41.6
24.3
54.5
45.3
53.3
43.7
13.9
40.5
10.3
25.4
30.2
54.9
FY21
125.2
49.6
75.6
19.6
21.1
96.7
22.9
28.2
68.6
25.9
65.5
22.8
39.1
29.5
7.4
25.2
22.1
-27.1
FY22
138.7
51.6
87.1
15.2
28.2
115.4
19.3
35.2
80.1
16.9
76.4
16.7
78.8
1.3
0.0
2.2
1.3
-94.3
FY23E
189.3
82.7
106.6
22.4
33.9
140.5
21.8
42.6
97.9
22.1
96.4
26.1
41.9
56.0
14.1
25.2
41.9
NM
(INR b)
FY24E
240.5
100.6
140.0
31.2
39.3
179.2
27.6
53.3
126.0
28.7
124.2
28.8
47.2
78.7
19.8
25.2
58.9
40.5
FY18
11.9
81.9
93.8
338.7
45.8
116.2
70.0
2.9
7.7
443.1
55.1
83.7
51.8
297.1
76.5
2.4
4.8
443.1
FY18
3.7
1.7
1.2
0.6
1.0
53.7
FY19
11.9
100.1
112.0
432.3
27.6
176.2
51.6
5.2
14.9
564.4
58.0
100.4
19.9
396.4
33.4
3.3
6.3
564.4
FY19
8.2
2.3
2.0
0.6
1.9
72.1
FY20
16.1
135.9
152.0
570.8
32.0
210.3
19.4
163.8
30.6
917.2
83.5
153.5
52.9
666.3
68.1
3.7
10.1
917.2
FY20
9.9
3.9
1.5
0.6
2.6
60.8
FY21
16.1
158.0
174.1
779.7
36.6
338.3
60.9
169.6
26.5
1,149.9
61.9
251.6
63.9
816.1
22.5
4.9
15.5
1,149.9
FY21
57.6
28.6
6.8
3.5
5.3
50.3
FY22
16.1
157.7
173.8
963.3
23.5
400.8
18.5
199.2
52.3
1,388.7
93.2
290.8
15.6
939.7
15.1
5.9
59.0
1,388.7
FY22
63.8
15.6
6.5
1.7
9.0
75.5
FY23E
16.1
192.0
208.1
1,194.5
24.0
556.6
38.9
223.1
55.0
1,680.7
75.7
351.9
21.0
1,171.1
24.6
6.6
75.5
1,680.7
FY23E
59.9
14.1
4.9
1.2
3.7
76.4
FY24E
16.1
241.4
257.5
1,493.1
25.0
704.8
26.6
256.6
64.8
2,072.1
84.9
418.7
19.0
1,477.9
26.2
7.4
83.2
2,072.1
FY24E
54.1
12.2
3.6
0.8
3.3
77.4
29 June 2022
8
 Motilal Oswal Financial Services
Bandhan Bank
Financials and valuations
Ratios
Y/E March
Spread Analysis (%)
Avg. Yield on Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost of Int. Bear. Liab.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Capitalization Ratios (%)
CAR
Tier I
Tier II
Business and Efficiency Ratios (%)
Loans/Deposit Ratio
CASA Ratio
Cost/Assets
Cost/Total Income
Cost/Core income
Int. Expense/Int. Income
Fee Income/Total Income
Non Int. Inc./Total Income
Emp. Cost/Total Expense
Investment/Deposit Ratio
Profitability Ratios and Valuation
RoE
RoA
RoRWA
Book Value (INR)
Growth (%)
Price-to-BV (x)
Adjusted BV (INR)
Price-to-ABV (x)
EPS (INR)
Growth (%)
Price-to-Earnings (x)
FY18
13.9
16.4
7.1
6.5
5.9
7.5
8.8
FY19
14.2
16.5
6.7
6.0
5.4
8.2
9.6
FY20
15.4
17.9
6.6
8.3
6.6
7.2
9.0
FY21
12.6
14.7
5.9
6.2
5.9
6.4
7.6
FY22
11.6
13.9
5.5
5.1
5.5
6.5
7.3
FY23E
13.3
15.8
6.4
6.8
5.5
6.5
7.5
FY24E
13.6
16.1
6.5
6.8
5.5
6.8
7.9
31.5
30.3
1.2
29.2
27.9
1.3
27.4
25.2
2.2
23.5
22.5
1.0
20.1
18.9
1.2
19.2
18.5
0.7
18.5
17.9
0.5
87.7
34.3
3.0
35.0
35.4
36.9
17.7
18.9
52.6
24.7
91.7
40.8
3.2
32.6
32.8
32.3
18.4
19.1
55.7
23.2
116.7
36.8
2.6
30.8
31.3
41.9
18.2
19.7
56.3
26.9
104.7
43.4
2.4
29.1
30.1
39.6
18.6
21.8
59.1
32.3
97.6
41.6
2.5
30.5
31.6
37.2
21.3
24.5
60.6
30.2
98.0
46.6
2.5
30.3
30.7
43.7
23.1
24.1
60.6
29.5
99.0
47.2
2.6
29.7
30.0
41.8
20.9
21.9
60.6
28.0
19.5
3.6
5.5
79
93.7
3.5
78
3.6
11.8
15.8
23.5
19.0
3.9
5.6
94
19.4
2.9
93
3.0
16.4
39.1
16.9
22.9
4.1
6.2
94
0.5
2.9
93
3.0
21.6
31.9
12.8
13.5
2.1
3.3
108
14.5
2.6
96
2.9
13.7
-36.5
20.2
0.7
0.1
0.2
108
-0.2
2.6
101
2.7
0.8
-94.3
NM
21.9
2.7
4.2
129
19.8
2.1
123
2.2
26.0
NM
10.6
25.3
3.1
4.7
160
23.7
1.7
155
1.8
36.6
40.5
7.6
29 June 2022
9
 Motilal Oswal Financial Services
Bandhan Bank
NOTES
29 June 2022
10
 Motilal Oswal Financial Services
Bandhan Bank
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
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https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
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This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
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to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
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Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
29 June 2022
11
 Motilal Oswal Financial Services
Bandhan Bank
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
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The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
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the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
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Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
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The person accessing this information specifically agrees to exempt MOFSL or any of its
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expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
29 June 2022
12