Bandhan Bank tumbles amid protest in Assam

Bandhan Bank was down 2.05% to Rs 525, extending its losses for third straight session.

The stock has fallen 6.21% in three session to its current market price of Rs 522.70 from a recent closing high of Rs 559.80 on 15 November 2019.

The selling was triggered by media reports suggesting that women protesters in Assam are seeking a ban on micro-finance companies.

According to media reports, several organisations under the banner of Jagrata Mahila Suraksha Samaj staged a protest against microfinance companies which they alleged had ruined the rural economy. The Samaj demanded that these microfinance companies should be banned from operating in Assam. Alleging that these companies were charging exorbitant rates of interest on loans and that their accounts checked for malpractices, they said the extra interest which had been collected should be returned.

The reports added that 18% of Bandhan Bank's assets under management (AUM) are from Assam.

As per the Bandhan Bank's 2018-19 annual report, 73 branches of the bank (out of the total 986 bank branches) and 346 doorstep service centres (DSCs) (of the total 3,014 DSCs) are located in Assam. The state is one of the biggest source of business for the bank as it has the second highest number of bank branches and DSCs after West Bengal.

The bank reported 99.3% jump in net profit to Rs 971.80 crore on a 66.1% increase in total income to Rs 3050.55 crore in Q2 September 2019 over Q2 September 2018.

Bandhan Bank is a banking and financial services company.

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