Bandhan Bank Shares Have Gained 54% Since Lockdown Started — But the Numbers Will Reveal the Real Damage to Rural India From COVID-19
By Prabhjote Gill
India’s Chief Economic Advisor Krishnamurthy Subramanian cited data in an interview to say that the reported stress in rural India has been exaggerated. However, the real impact of COVID-19 lockdown on rural India will be reflected in earnings from Bandhan Bank – one of the country’s biggest microfinance institutions and a listed bank since March 2018.
So far, the share price reflects some optimism. It’s up over 54% since the lockdown starting March 25. However, it is still available at less than half the price compared to December-end. Most of its business is based in the rural outposts of India, which have been more affected by the economy shutting down than the coronavirus disease itself.
Photo courtesy of Ray Witlin / World Bank.