Bandhan Bank Ltd. share price target

Operating Model Focused on Serving Underbanked and Underpenetrated Markets: The Company's focus on underbanked and underpenetrated markets allows it to meet certain regulatory requirements. As the company focuses specifically on serving underbanked and underpenetrated markets, 29.15% of its banking outlets are located in unbanked rural areas and 96.49% of its Gross Advances are Priority Sector Lending (PSL)...

IPO NOTE

Bandhan Financial Services had received in principle approval from RBI to set up a Bank and it began its banking operations in August 2015 with the name Bandhan Bank Ltd (Bandhan). The bank has grown remarkably in a very short span of time. It primarily focuses on serving underbanked and underpenetrated markets in India (East and North Ea..

Bandhan Bank, despite being a former micro-finance players and considering the impact of demonetization, posted the lowest NPAs amongst scheduled commercial banks with a GNPA ratio of 0.5% in fiscal year 2017. Bank’s loan book grew 35% in fiscal year 2017, the highest amongst scheduled commercial banks which is expected to increase considering the last quarter growth usually high . Additionally, since beginning operations bank have generated increasing non-interest income as a percentage of overall income, improving from 8.66% for March 2016 to 35.38% for the nine months ended December 31, 2017. This increase in non-interest income has helped to improve margins and returns. Further, it aims to garner more non-interest income to reduce the dependency on the core interest income. Going forward, we see the growth to continue as the bank focuses to serve in under banked and underpenetrated markets in India. The bank looks fairly stable in terms of asset quality even as some of its peers are struggling with high NPAs. We recommend our investors should subscribe to the IPO, And it could be a multibagger in long-term.

Bandhan Bank Ltd. (Bandhan Bank) was incorporated on December 23, 2014 and began operations on August 23, 2015 when Bandhan Financial Services Ltd. (BFSL), the parent company, transferred its entire microfinance to Bandhan Bank. Bandhan Bank's strength lies in microfinance, which includes a network of 2,633 doorstep service centres and 9.86mn micro loan customers. Since obtaining its banking license, Bandhan Bank has also focused particularly on creating a strong general banking business. It launched its general banking business on August 23, 2015 by opening a network of 501 bank branches and 50 ATM's, which as of Dec 31, 2017 has grown to 887 bank branches and 430 ATM's. Bandhan Banks's distribution network is...

Bandhan Bank Ltd. (BBL), incorporated in 2014 is a Kolkata based commercial bank promoted by its founder, MD and CEO Mr. Chandra Shekhar Ghosh. BBL provides pan-India services with focus on micro banking and general banking services majorly serving under-banked and underpenetrated markets in India. BBL is the first microfinance company and the first in a decade that was granted a banking license. BBL started its operation as an NGO in 2001 which was transferred into India's largest microfinance company by number of customers and size of loan...

IPO Note - Bandhan Bank Ltd Issue Open: Mar 15 - Mar 19, 2018, Price Band: Rs. 370 - 375, Issue Size: 119,280,494 Equity Shares (Including Fresh issue of 97,663,910 eq sh, + Offer for sale of 21,616,584 eq sh), Offer Size: Rs 4413.3cr 4473.0cr

Incorporated on December 23, 2014, Bandhan Bank began operations on August 23, 2015, post transferring the entire microfinance business from parent - Bandhan Financial Services (BFSL). Bandhan Bank is now a commercial bank focused on serving underbanked and underpenetrated markets in India. Founder, MD and CEO, Chandra Shekhar Ghosh, has 37 years of experience in the Indian microfinance industry. As of December 31, 2017, Bandhan Bank operates 887 branches and 2,633 dedicated door step services centres servicing ~1.2 crore...

Bandhan Bank Ltd. (BBL), incorporated on December 23, 2014, is a Recommendation Kolkata based lender starting banking operations on Aug'23, 2015. In April 2014, the RBI had granted a banking license to Bandhan...