Bandhan Bank lowers return on assets projection to 1.2-1.4%, stock price continues to tumble

•Bandhan Bank's management has reduced the return on assets (RoA) guidance by 40 basis points to 1.2-1.4% due to supply chain disruptions and elevated technology costs.

•The bank's technology-linked expenses are expected to remain inflated for the next couple of quarters, impacting profitability.

•Managing Director Partha Pratim Sengupta attributed the reduced guidance to external factors, including a potential energy crisis and its impact on customer sentiment.

•The bank's operating expenses to asset ratio rose to 4.3%, exceeding the guidance of 4.2%, mainly due to loan origination system costs.

•Chief Financial Officer Rajeev Mantri stated that the bank would see improvement in operating efficiencies after two years of technology investments, beyond FY2028.