Half Of Bharat Fin's At-Risk Portfolio Likely To Go Bad: Analyst

Bharat Financial Inclusion on Monday said that 4.5 percent of its gross loan portfolio is at risk of turning into bad loan in the on-going fourth quarter. In a concall, the management said that portfolio with more than 8 weeks overdue was at Rs 383 crore. 

At least half of this 4.5 percent is likely to turn into a non-performing asset, according to Parag Jariwala, VP – Institutional Research, Banking & Financial Services at Religare Capital. Religare has a sell call on the stock with target price of Rs 550. 

More than demonetisation, it is political interference in Uttar Pradesh and Maharashtra that is main concern for the company. The management said than 60 percent of the overdues are from states of UP and Maharashtra.

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