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This development comes against the backdrop of several banks encountering technical difficulties with their digital and tech-based banking services. Notably, HDFC Bank, India’s largest private sector lender, experienced issues with its digital and web banking services in February 2023. ICICI Bank, another private sector bank, also faced a tech outage in May 2023.
Customers of HDFC Bank, ICICI Bank, Yes Bank, Bank of Baroda, and IDFC First Bank (NASDAQ:FRBA) who participated in the retail digital rupee pilot have reported technical problems and issues while making payments.
The successful migration by Bandhan Bank is seen as a significant step amid these recent technical challenges faced by other banks in their digital and tech-based services. This move is particularly noteworthy considering the bank’s recent financial performance and position in the banking industry. According to InvestingPro, Bandhan Bank is a prominent player in the Banks industry.
InvestingPro’s real-time metrics also reveal that Bandhan Bank’s net income is expected to grow this year, a positive sign for investors. The bank, however, is quickly burning through cash and has low earnings quality, with free cash flow trailing net income. Revenue growth has also been slowing down recently, and the bank suffers from weak gross profit margins. The valuation implies a poor free cash flow yield. Despite these challenges, analysts predict the bank will be profitable this year and it has indeed been profitable over the last twelve months.
InvestingPro Tips suggest that investors should keep a close eye on these metrics and the bank’s financial health.
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