Shares of Bandhan Bank slumped 12 percent in intra-day deals on Monday after around 21 percent of its equity changed hands on the NSE and BSE via block deals. Approximately 33 crore shares, representing 20.57 percent equity of the bank and worth Rs 10,482 crore, changed hands on the counter at around 9:15 am on the BSE and NSE at an average price of Rs 314 per share. The names of the buyers and sellers could not be ascertained immediately.

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As per media reports, the lender's promoter Bandhan Financial Holdings was looking to sell 33.74 crore shares in a block trade in order to raise $1.4 billion.

The stock fell as much as 11.8 percent to its intra-day low of Rs 304.20 per share. The stock ended over 10 percent lower. So far in 2020, the stock has declined nearly 40 percent as compared with a 10 percent fall in benchmarks.

In June quarter, the lender reported a 32 percent fall in profit at Rs 550 crore as against Rs 804 crore in the year-ago period mainly due to additional provisioning in the wake of COVID-19.

"We have made additional provisioning besides normal provisioning. This can be called COVID provisioning. Even in the last quarter of the previous fiscal, we had made similar provisioning of around Rs 1,000 crore," Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank told PTI.

Ghosh added although it is not certain when the scourge of the pandemic will be over, the bank will not have to go for any additional provisioning during the second quarter, even if the coronavirus situation persists.

The bank's provision for bad loans and contingencies jumped multi-fold to Rs 849.06 crore for April-June quarter as against Rs 125.36 crore parked aside for the same quarter in FY20, it said in a regulatory filing.

Global brokerage house Credit Suisse is bullish on the stock due to its strong fundamentals and better business operations. Bandhan is likely to see growth rebound faster as it focuses on new segments and deepens its relationships with existing customers, it added.

First Published:Aug 3, 2020 12:38 PM IST