Bandhan Bank tanks 7%; cyclone Amphan may have hit business worth ₹260 crore1 min read . Updated: 22 May 2020, 12:12 PM IST
- The bank said it could continue operations in all but five branches in the affected districts
- Some outlets could not resume services due to issues in accessibility, but will restart operations shortly
Mumbai : Shares of Bandhan Bank lost as much as 7.28% on Friday after the bank said cyclone Amphan, which impacted services in some areas of West Bengal and Odisha, may have hit business worth ₹260 crore.
At 1120 am, Bandhan Bank was at ₹197.95 from its previous close, while the benchmark Sensex was 1% lower at 30623.73
Cyclone Amphan struck five districts of West Bengal and coastal Odisha on May 20 and lasted till the wee hours of May 21.
“As per the initial assessment, in our areas of operations, 49 banking units (micro banking outlet) in five districts were impacted of which 45 are operational today," the Kolkata-headquartered bank said in a regulatory filing after market hours on Thursday.
The bank said it could continue operations in all but five branches in the affected districts. Some outlets could not resume services due to issues in accessibility. The bank expects these outlets to restart operations shortly.
As per the bank’s estimate, the business of around 65,000 of its micro banking borrowers, amounting to an exposure of approximately ₹260 crore, could be impacted due to the cyclone. The major impact has been in the district of South 24 Parganas.
"In our experience of Fani, the cyclone that caused large scale damage in Odisha in May 2019, the impacted portfolio took 3 to 6 months to achieve normalcy, aided by the committed workforce and customer loyalty. On the back of this experience, we expect the Amphan affected portfolio to regularise by Q3 of FY21, it added.
Bandhan has a strong brand presence in East and North-East India in the micro loan business, which constituted around 60% of its loan portfolio.