Bandhan Bank Ltd. share price target

Net Interest Income (NII) for the quarter stood at INR 28,303 Mn, reflecting a 12.1% YoY growth but a 4.0% QoQ decline. Core NIMs stood at 7.4%, improving by 20 bps YoY but contracting 20 bps QoQ. The NII missed our expectations primarily due to lower yields.

We maintain our BUY recommendation on the stock, given the upside is over 10%.

PPOP aided by one-offs in other income, payouts under CGFMU and Assam Microfinance relief scheme

Net Interest Income (NII) for Q2FY25 stood at INR 29,483 Mn, a growth of 20.7% YoY (-1.9% QoQ). The yields on advances improved by 40 bps YoY (-20 bps QoQ) at 13.7%.

We revise our rating BUY from HOLD earlier.

Bandhan Bank reported a 6% PAT beat at Rs9.4bn and RoA of 2.1%, mainly led by higher other income and lower than expected provisions – better than some peers that posted sharp earning downgrades.

Net Interest Income (NII) for Q1FY25 stood at INR 30,050 Mn, a growth of 20.7% YoY/ 4.8% QoQ. The NII was 2.2% better than our estimates, led by better-than-estimates.

We maintain our HOLD recommendation on the stock.

Bandhan Bank (BANDHAN) reported a healthy beat on PAT at INR10.6b (+47.5% YoY) fueled by controlled opex and provisions

Bandhan Bank earnings were a miss on account of the technical write-off of loans; however, operating profits met our expectations. Net Interest Income (NII) for Q4FY24 stood at INR 28,663 Mn, a growth of 16.0% YoY/ 13.5% QoQ.

Healthy business growth, improved asset quality and higher other income supported topline; increased provision dragged PAT

We maintain our HOLD recommendation on the stock.

We revise our rating from BUY to HOLD lowering the valuation multiple from 1.5x Sep'25E ABV to 1.1x Sep'25E ABV. We arrive at a target price of Rs 175/share, implying a downside of ~5% from the CMP.

Bandhan Bank Limited (BANDHAN)’s board has taken on record the letter submitted by Mr. Chandra Shekhar Ghosh, MD & CEO of Bandhan Bank, informing that he would retire from the services of the Bank as the MD & CEO upon completion of his current tenure on July 9, 2024.
Mr. CS Ghosh founded Bandhan Bank and has been associated with it for over 24 years. Post-retirement as CEO, Ghosh will take up a “strategic role” at the group holding company level (i.e., Bandhan Financial Holdings Ltd), advising the group’s business verticals.

As of December 31, 2023, the loans and advances (on book + off book+ TLTRO+PTC) stood at INR 1,159.4 Mn, an 18.6% YoY/ 7.7.% QoQ growth. The growth in the loan book reflects an uptick in demand across the asset verticals.

AMBER: Persistent near-term challenges; cut to SELL. CPI and IIP: Still some pain points on inflation. Credit Composition: Study on personal loans. HMCL: Healthy quarter but positives priced in. TMX: Improving order outlook; maintain HOLD. BANDHAN: Recovery on track. IGL: Legacy UP, new GAs can offset slowdown, reiterate BUY. ZYWL: Seasonally weak quarter

We revise our rating from HOLD to BUY, purely on valuation comfort.

Expect 19% credit and deposit CAGR over FY23-FY25 on retail-led growth and targeted increase in secured book