Shares of Bandhan Bank fell 3.2% intraday on October 10 after the private lender reported weak payment trends in the second quarter of FY23. The bank’s loans and advances stood at Rs 99,374 crore at the end of the September quarter, up just 3% quarter-on-quarter.

The stock was quoted at Rs 266 on the NSE at 2 pm. It was down more than 16% in the past six months. The bank’s total deposits rose 7% to Rs 99,365 crore at the end of September from Rs 93,057 crore in the previous quarter. Of this, retail deposits stood at Rs 73,660 crore, up just 1%. The sequential increase in CASA deposits also stood at Rs 40,509 crore compared to Rs 40,195 crore in the June quarter.

The company said its pan-India collection efficiency, excluding distressed assets and restructured customers, was 97%, up slightly from 96% at the end of the June 2022 quarter.

Analysts at Motilal Oswal have a “neutral” rating on the stock with a price target of Rs 275. A slight increase in collection efficiency has made us wary of asset quality and credit costs, which have hurt earnings,” they said in a note.

CLSA’s NPA (non-performing assets) also rose. “September’s collection efficiency was slightly better, but significantly behind March 2022 levels,” the company said. It has an outperformed call with a target price of Rs 325.