Bandhan Bank tumbles after block deals

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Shares of the private lender slumped 11.08% to Rs 307 after the counter witnessed multiple block deals in early trade today, 3 August 2020.

On the BSE, the counter clocked a volume of 37.14 crore shares as against its average trading volume of 7.21 lakh shares in the past three months. The stock tumbled 11.88% to hit a low of Rs 304.2 on BSE in trade today. Over 91% of the total traded quantity is marked for delivery, BSE data showed.

On the NSE, the scrip declined 11.03% to Rs 307.05. The counter clocked a volume of 9.18 crore shares as compared with its average trading volume of 1.55 crore shares in the past three months. The stock shed 14.5% to hit a low of Rs 295.1 on NSE in trade today.

The media reported that Bandhan Bank's promoter will sell Rs 10,500 crore worth of equity stake in the private sector lender through a block deal on Monday. The block deal involves selling 33.74 crore shares in the lender at a floor price of Rs 311 per share.

The bank's main shareholder Bandhan Financial Holdings, which currently owns 60.95% shares in the lender, was reportedly expected to offload about 20.95% stake in Bandhan Bank. The move is a part of the bank's effort to bring down promoter shareholding in the lender to meet the Reserve Bank of India (RBI) regulatory norms.

Bandhan Bank operates as a commercial bank. It has spread its presence to 34 of the 36 states and union territories in India with 4,559 banking outlets serving 2.03 crore customers, as on 30 June 2020.

The bank's standalone net profit fell 31.58% to Rs 549.81 crore on a 14.93% increase in total income to Rs 3,404.84 crore in Q1 June 2020 over Q1 June 2019.

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