Bandhan Bank Ltd. share price target

We maintain our BUY recommendation on the stock.

Bandhan Bank reported Q4FY26 PAT of INR 5.3bn (+160% QoQ; off a low base), driven by lower credit costs on the back of improved slippages and contained write-offs, while PPOP was flat QoQ. EEB, after multiple quarters, saw a jump in growth to 8% QoQ.

PPoP lower than estimates, but PAT increased on lower CC. RoA to gradually improve to 1.6% by FY29E

The MFI stress cycle has likely bottomed in Q4FY26, with operating indicators turning decisively. EEB collections at 99.3%, slippages down ~25% QoQ, and SMA 0-2 compressing to 3.1%.

Bandhan Bank reported 4QFY26 PAT of INR5.3b (up 68% YoY, 32% beat). NII grew 4% QoQ to INR27.9b (in line). Margin improved by 30bp QoQ to 6.2%, aided by a reduction in CoF (down 20bp QoQ) and improvement in yields (up 10bp QoQ).

Bandhan has endured a long and painful asset quality cycle over the past many years. After delivering a stellar ~4% average RoA over FY17-20, the profitability has declined sharply, with the average RoA shrinking to 1% over the past five years.

We revise our rating from Hold to BUY on reasonable valuations.

Bandhan Bank (Bandhan) reported muted Q3FY26 PAT of INR 2.1bn (RoA of 0.4%), pulled down by elevated provisioning, though there was a sharp improvement in reported gross NPA.

Bandhan Bank reported 3QFY26 PAT of INR2.1b, up 84% QoQ. NII grew 4% QoQ to INR26.9b (in line). Margin improved by 6bp QoQ to 5.9%, aided by a reduction in CoF (down 20bp QoQ).

The management expects NIM to improve from Q4 onwards driven by the benefits from lower costs of term deposits. The EEB segment saw a sequential decline in SMA-1 and SMA-2 balances, indicating initial signs of improvement in asset quality, which is expected to reflect in the coming quarters. The bank is also focusing on strengthening its digital and government ecosystem partnerships, driving Current Account Savings Account (CASA) growth and enhancing customer engagement to...

Bandhan Bank’s near-term profitability remains under pressure, impacted by yield resets, elevated provisions, and continued EEB slippages, however deposit granularity is improving, with a healthy CASA and retail term deposit mix, while the secured loan portfolio continues to gain share, supporting better asset quality over time.

Bandhan Bank (Bandhan) reported a weak set of numbers. PAT was muted at INR 1.1bn (0.2% RoA), burdened by a sharp 55bps dip in NIM (on account of bulky yield compression amidst continued mix change and modest improvement in cost of deposits), elevated credit costs and muted treasury gains QoQ.

Significant decline in PAT due to NIMs pressure and higher provisions; credit growth remains moderate

Net Interest Income (NII) for Q1FY26 declined by 8.2% YoY (flat QoQ) to INR 27,572 Mn., below our estimates by 8.2%, mostly led by contraction in NIM margins. Non-interest income for Q1FY26 grew by 37.6% YoY (+3.8% QoQ) to INR 7,259 Mn., above our estimates, led by sharp increase in treasury gains.

We maintain our HOLD recommendation, given limited upside potential.

PAT improved on a sequential basis due to lower credit costs, while NIMs remain under pressure given the rising share of secured book

Net advances were at Rs. 131,990cr, a 9.0% YoY growth, supported by increase in housing, retail and wholesale banking advances. GNPA and NNPA ratios deteriorated to 4.7% and 1.3% in Q4FY25 from 3.8% and...

We revise our rating from BUY to HOLD, as we see limited upside from the CMP

Bandhan Bank (BANDHAN) reported 4QFY25 PAT of INR3.2b (up 480% YoY), 29% below our estimate due to lower other income and higher provisions.

Q4 was better than expected for Bandhan Bank, given the challenges the MFI segment was faced with. Though slippages were higher than in the prior quarter in the overall book incl. the EEB book, the decrease in the SMA book was positive, indicating lower incremental stress build-up.