Geopolitical risk from war impact on MFI
Management flagged potential adverse effects from ongoing war on fuel prices, supply chains, and rural economy, which could affect MFI collections.
BANDHANBANK / bear-case history
Track the concerns that keep returning.
Bandhan Bank · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
ECL transition impact on capital
Transition to expected credit loss norms may require ₹1,250 crore additional provisions, impacting CET1 by 16-17bps annually over 5 years.
Elevated operating expenses
Q4 opex rose 10% QoQ due to non-recurring items (PSLC cost, IT expenses); management expects normalization but cost control remains a focus.
Intense deposit competition
Management noted rising deposit rates in March; ability to grow granular retail deposits without margin pressure is a key challenge.