Bandhan Bank Shares Jump 9% as Quarterly Profits Soar 30%

Shares of Bandhan Bank surged over 9% to Rs 184 on October 28 after the bank reported a strong financial performance for the July-September quarter (Q2FY25). The bank’s net profit rose by 30% year-on-year, drawing positive responses from brokerages who kept their "buy" recommendations, seeing a potential price increase of up to 36%.

Macquarie was among the most optimistic, marking an "outperform" call with a target price of Rs 250 per share, as analysts see a strong risk-reward balance given Bandhan Bank's growth and returns.

Jefferies also maintained its "buy" rating and set a target price at Rs 240, praising both the profit and the strength of Bandhan's micro-finance (MFI) loans. "The quality of these loans shows Bandhan Bank is well-positioned to lead the MFI sector cycle. While some loans show slippages, they don’t greatly impact overall earnings," noted analysts. Meanwhile, Nomura updated Bandhan’s rating to "neutral" with a target price of Rs 180, noting that while the stock’s valuation is appealing, the MFI sector remains challenging.

In Q2FY25, Bandhan Bank saw a 30% year-on-year increase in net profit to Rs 937 crore, with net interest income (NII) growing by 21% to Rs 2,948 crore. The bank's net interest margin (NIM) also improved slightly, reaching 7.4% compared to 7.2% a year earlier.

Bandhan Bank's deposits grew healthily, reaching Rs 1.4 lakh crore, up 27% year-on-year. The bank’s gross advances rose by 21% to Rs 1.3 lakh crore in Q2FY25, showcasing its strong growth trajectory in a competitive market.

Sources: Internet Sources & Twitter X 

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