Bandhan Bank IPO: Short-term investors can easily avoid this 'tie-up'

Although the bank's business outlook seems strong, expensive valuations are the key issue, say analysts

On fundamentals, the prospects for Bandhan Bank (Bandhan), which is coming out with its initial public offering (IPO) on March 15, remain robust -- it has a strong asset quality, high profitability as well as growth rates. However, the asking rate is on the higher side, say most analysts, who believe that there is nothing left on the table from the short-term perspective. Moreover, some analysts are also sceptical of Bandhan's short stint of 3-4 years as a bank.

Enviable track record

Started as a microfinance company in 2001, Kolkata-based Bandhan received a banking licence from the Reserve Bank of