Industry Profile: As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and well-regulated. The financial and economic conditions in the country are far superior to any other country in the world. Credit, market, and liquidity risk studies suggest that Indian banks are generally resilient and have withstood the global downturn well. The Indian banking industry has recently witnessed the roll-out of innovative banking models like payments and small finance banks. RBI’s new measures may go a long way in helping restructure the domestic banking industry. The digital payments system in India has evolved the most among 25 countries, with India’s Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments Innovation Index (FPII).

The Indian banking system consists of 27 public sector banks, 26 private sector banks, 46 foreign banks, 56 regional rural banks, 1,574 urban cooperative banks, and 93,913 rural cooperative banks and cooperative credit institutions. Public-sector banks control more than 70 percent of the banking system assets, leaving a comparatively smaller share for their private peers. Banking the unbanked is one primary target for the central govt and RBI and

Company Profile: The company is Indias, one of the youngest banks that received a license in 2014. Before that, The company was a microfinance company located in Bengal. The company came up with IPO and became the eighth largest bank per market cap. It is also the first bank set up in the eastern part of India after independence.

The company operates as universal banking and, like other banks, is also a lending business. However, the bank’s specialty is that it has a large part of the loan book as a female borrower, and also microfinance is a large part of the loan book.

Shareholding pattern: BSE Data

Financials and ratios :  [table id=127 /]

Future prospectus: Loan book is very concentrated around Bengal and some districts of Assam. So any adverse political factor can easily affect them. A bank is working on it, and a merger with GRUH finance was a great way to handle such a complete loan book.