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Bandhan Bank shows rise in stress as Assam, pandemic scar loan book

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Bandhan Bank showed the scars of a change in state rules and a challenging pandemic. Repayments from small borrowers floundered and stress on the balance sheet surged.Bandhan Bank’s provisions trebled from the year ago period because the lender had to set aside ₹1000 crore specifically for pandemic-related stress in the December quarter.

Additional stress on both asset quality and loan growth emanated from Assam where the government passed a new bill. With its operating profit being set aside almost entirely towards provisioning, the bank’s net profit dropped 13.5% from the year ago period.

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