Bandhan Bank Ltd. share price target

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.

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

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.

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

Bandhan Bank (Bandhan) reported subdued Q2FY24 PAT at INR 7.2bn (flattish QoQ; RoA at 1.9%) while asset quality deteriorated QoQ. Despite higher-than-expected slippages and flattish PCR, the bank reported stable (and lower-than-expected) credit costs as there were nil write-offs. Unlike other players, asset quality improvement has been much slower at Bandhan.

Wipro’s IT Services revenue dipped 2.3% QoQ USD in Q2FY24. The slip was much steeper than our/consensus’ expectations of -0.5%. Revenue growth came in at the lower-end of Wipro’s guidance for Q2FY24.

We revise our recommendation from BUY to HOLD.

Despite QoQ flattish NIMs, Bandhan Bank (Bandhan) has reported soft Q1FY24 earnings due to a sharp decline in AUM QoQ, elevated opex, while headline asset quality has deteriorated. PAT declined 11% QoQ to Rs7.2bn, pulled down by flattish NII QoQ and a rise in opex on the back of sizeable branch expansion (branches are up 130 QoQ).

We maintain our BUY recommendation on the stock.