Bandhan Bank share prices surged by 2% on BSE after the bank said it has received a ₹916.6-crore claim as a credit guarantee fund from the government.
At 11.18 am, the stock was trading 1.90 % higher at ₹251.45 on BSE. The bank shares showed an upward trajectory soon after the opening of the stock market, starting the day at ₹250.40.
“The Bank had obtained guarantee under CGFMU, the Trust Fund set up by Government of India, managed by NCGTC as a Trustee, with the purpose of guaranteeing payment against default in Loans extended to eligible borrowers by Banks. It is to be informed that Bank has received claim under the scheme for FY 2022-23 amounting to Rs. 916.61 crores,” the bank said in an exchange filing.
Last month, Bandhan Bank’s stock hit a 52-week low at ₹209.45 on November 22. Its shares reached a 52-week high at ₹349.50 on May 17. Since hitting its 52-week low last month, the shares have picked up momentum. The stock has gained 11.2% in the past month.
The Kolkata-based Bandhan Bank received the fund under the Credit Guarantee Fund for Micro Units (CGFMU), the Trust Fund set up by the Government of India. The fund is managed by the National Credit Guarantee Trustee Company (NCGTC) Ltd as trustee.
The bank earned a revenue of ₹3,73.45 crore with a net profit of ₹209.9 crore in the September quarter of the current financial year. However, there was a 7% reduction in its revenue compared to the previous quarter of FY23. The company faced a sharp 76% quarterly reduction in its net profit after tax in the September quarter. Its share value has fallen by 0.47% so far this year.
These funds are extended to lending institutions including NBFCs, micro banks, etc. One of the main reasons behind lending this fund is to provide collateral cover to the lending agencies against the loans given to the beneficiaries. Under the scheme, lending agencies are eligible for a maximum credit cap.
In addition to Bandhan Bank, other banks are also rallying on the stock markets. Bank Nifty has been performing well for the past month and it hit a record high in the morning trade. At 11 am, the index was trading 0.49% higher at 43,939.6.
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