Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by improving asset quality and profitability.
Basis of our Recommendation
Bandhan Bank is demonstrating a recovery trajectory with improved asset quality, profitability, and margins. The bank's growth potential is supported by lower provisions and strong fee income, although it faces some cost pressures and market volatility. Overall, the outlook remains positive as the bank stabilizes and enhances its credit metrics.
Why We Like This Stock
- Improved asset quality and profitability
- Lower provisions enhancing margins
- Strong fee income contributing to growth
Things To Watch Out For
- Concerns about cost pressures
- Market volatility impacting valuation
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 10,319 | 11,490 | 10,830 | 12,170 | 13,711 |
| Profit Before Tax (Cr.) | 2,943 | 3,623 | 1,734 | 3,063 | 3,591 |
| PBT Margin | 28.5% | 31.5% | 16.0% | 25.2% | 26.2% |
| Net Profit (Cr.) | 2,352 | 2,647 | 1,224 | 2,175 | 2,549 |
| EPS | 14.6 | 16.4 | 7.6 | 13.5 | 15.8 |
Company Overview
Show Company Profile
Bandhan Bank Limited provides banking and financial services for personal and business customers in India. The company operates through Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business segments. It accepts term, fixed, and recurring deposits; and offers savings and current accounts. The company also provides home, gold, personal, two-wheeler, and car loans; loans against property; loan/overdraft against term deposits; and loans for small, medium, and large businesses. In addition, it invests in sovereign securities; offers liability products, card services, internet and mobile banking, ATM, trading, and non-resident Indian services; distributes third party products; and engages in demat and trading activities. Further, the company provides mutual fund, money transfer, bill payment and recharge, merchant payment, debit and credit card, internet and mobile banking, doorstep banking, safe deposit locker, remittance, transaction banking, trade finance, and cash management services, as well as health, life, home, travel, property, and car insurance products. The company was founded in 2001 and is headquartered in Kolkata, India. Bandhan Bank Limited operates as a subsidiary of Bandhan Life Insurance Limited.