Bandhan Bank Ltd. share price target

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.

We revise our recommendation from BUY to HOLD.

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.

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.

Recommendation: We maintain our BUY recommendation on the stock.

Bandhan Bank (Bandhan) reported Q4FY23 PAT of Rs8.08bn (vs Rs2.9bn QoQ), led by a sharp rebound in NIMs and a sharp moderation in provisioning. Annualised RoA has come in at 2.2%.