Bandhan Bank
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Bandhan Bank's recent performance reflects a cautious yet optimistic outlook, driven by improving asset quality and a strategic pivot towards digital transformation and secured lending. Management's focus on enhancing operational efficiency through technology investments is expected to bolster margins, despite near-term pressures from elevated operating costs and a downward revision in return on assets (RoA) guidance. The bank's robust credit growth, particularly in secured advances, supports Vista's forecast of revenue recovery and margin expansion, aligning with the expected upside of approximately 40.7%. However, challenges such as rising funding costs and competitive deposit pricing may temper growth. The small to medium private banking sector's favorable conditions, including improving pricing power and stable economic indicators, further underpin Bandhan Bank's long-term growth potential. Over the next 12-24 months, key opportunities lie in the bank's digital initiatives and diversification strategies, while watchpoints include the impact of macroeconomic uncertainties and the execution risks associated with its strategic transition
Why We Like This Stock
- Improving asset quality and credit growth, particularly in secured lending, support revenue recovery
- Strategic investments in digital capabilities are expected to enhance operational efficiency and customer experience
- The small to medium private banking sector's favorable conditions provide a conducive environment for sustained growth
Things To Watch Out For
- Elevated operating costs and funding pressures may hinder margin expansion and profitability in the near term
- A downward revision in RoA guidance reflects external challenges and increased competition in deposit pricing
- Execution risks associated with the bank's strategic transition could impact growth and operational stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 10,319 | 11,490 | 10,830 | 11,197 | 12,828 |
| Profit Before Tax (Cr.) | 2,943 | 3,623 | 1,734 | 1,973 | 3,235 |
| PBT Margin | 28.5% | 31.5% | 1601.1% | 17.6% | 25.2% |
| Net Profit (Cr.) | 2,352 | 2,647 | 1,224 | 1,401 | 2,297 |
| Earnings Per Share | 14.6 | 16.4 | 7.6 | 8.7 | 14.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 235 | 22-Jul-2026 |
| BOB Capital Markets | ▲ Buy | 206 | 29-Apr-2026 |
| BofA | ▲ Buy | 220 | 22-Jul-2026 |
| CLSA | ▲ Outperform | 235 | 22-Jul-2026 |
| Deven Choksey | ▲ Buy | 223 | 23-Jul-2026 |
| Elara Capital | ▲ Buy | 220 | 29-Apr-2026 |
| ICICI Securities | ► Hold | 200 | 22-Jul-2026 |
| JPMorgan | ► Neutral | 175 | 22-Jul-2026 |
| Jeffries | ▲ Buy | 240 | 22-Jul-2026 |
| Kotak Securities | ▲ Buy | 235 | 12-Aug-2026 |
| Macguire | ▼ Underperform | 130 | 22-Jul-2026 |
| Motilal Oswal | ► Neutral | 225 | 22-Jul-2026 |
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.