Bandhan Bank shares jump 6% as brokerages remain bullish despite 52% fall in Q3 net profit; here's why

Bandhan Bank share price

• Bandhan Bank shares jumped 6 percent after Q3 FY26 results release
• Net profit fell 52 percent YoY, but asset quality and deposits improved
• Brokerages upgraded stock, citing recovery and upside potential

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The shares of Bandhan Bank jumped around 6 percent on January 23 after the lender released its results for the October-December quarter of the ongoing financial year 2026. Brokerages remain bullish on the stock, citing several reasons.

Bandhan Bank shares rose to a one-month high of Rs 151.25 apiece in the morning trading hours of Friday. The company had released its Q3 FY26 results in the post-market hours of Thursday.

Bandhan Bank Q3 Results:

Bandhan Bank reported a net profit of Rs 205.59 crore for the third quarter of FY26, marking a 52 percent year-on-year (YoY) fall from the Rs 426.49 crore net profit reported in the same quarter of the previous financial year.

Sequentially however, the lender’s net profit surged around 84 percent QoQ from Rs 111.87 crore reported in the previous quarter (Q2 FY26).

Bandhan Bank’s net interest income meanwhile fell around 4.5 percent YoY to Rs 2,688.30 crore during the quarter under review. Asset quality improved, with gross NPA ratio falling to 3.33 percent in Q3 FY26, from 4.68 percent in Q3 FY25 and 5.02 percent in Q2 FY26.

Deposits grew 11 percent YoY to Rs 1.57 lakh crore, while gross advances rose 10 percent YoY to Rs 1.45 lakh crore. Net interest margin (NIM) for the quarter stood at 5.9 percent.

Motilal Oswal upgrades Bandhan Bank shares:

Motilal Oswal upgraded Bandhan Bank shares to ‘Buy’, with a target price of Rs 175 per share. This implies an upside potential of nearly 23 percent from the stock’s previous closing price of Rs 142.46 apiece.

The domestic brokerage said that the firm’s Q3 results were more or less in line with estimates. “Bandhan has undergone a long-drawn NPA cycle, which significantly impacted its growth and profitability profile. As a result, the bank delivered a tepid 8% avg. RoE over the past five years,” it said.

Motilal expects the bank’s operating performance to recover in the coming quarters, with asset quality regaining normalcy and margins stabilizing.

JM Financial upgrades Bandhan Bank shares:

JM Financial noted that the company’s net profit missed its estimate despite strong operating performance, primarily due to elevated credit cost which was expected to moderate during the quarter following the NPA sale.

However, given the current valuation of 0.7xFY28 P/B, JM Financial feels that the downside potential in the stock looks limited. Hence, the domestic brokerage upgraded the stock to ‘Add’, and increased its target price to Rs 160 apiece. This implies an upside potential of more than 12 percent from the stock’s previous closing price.

UBS expects NIM to improve further:

UBS said that the company’s Q3 profit missed its estimates due to higher provisions, despite sequential improvement in key metrics. It expects NIM to improve further and slippages to sustain decline.

The international brokerage kept a ‘Neutral’ call on the stock, with a target price of Rs 180 per share. This implies an upside potential of more than 26 percent from the stock’s previous closing price.

CLSA on Bandhan Bank:

CLSA said that Bandhan Bank’s margin largely remained stable, marking a relief after two quarters of sharp decline. AUM growth picked up to 8 percent YoY from 6 percent YoY.

The international brokerage kept an ‘Outperform’ rating on the stock, with a target price of Rs 190 per share. This implies an upside potential of more than 33 percent from the previous closing price.

Nomura on Bandhan Bank:

Nomura kept a ‘Neutral’ call on the stock, with a target price of Rs 160 per share. It noted that Bandhan Bank’s asset quality recovery lagged peers in Q3FY26

However, it noted that the stock trades at inexpensive valuation of 0.8x FY27 BVPS.

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