Bandhan Bank stock gains 2.5% after healthy Q2 biz update

Bandhan Bank released its Q2 update on October 4.

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26 Aug, 2025 12:21

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Shares of Bandhan Bank rose 2.5 percent on October 7 after the company reported a healthy growth in its July-September business update. In addition, the board also approved the extension of Ratan Kumar Kesh as the lender's interim MD and CEO for another month.

At 09.15 am, shares of Bandhan Bank were trading at Rs 191 on the NSE.

The lender's loans and advances grew 21.4 percent on year to Rs 1.31 lakh crore in Q2 as against Rs 1.07 lakh crore in the year ago period. Meanwhile, deposits were up 27.2 percent to Rs 1.42 lakh crore in comparison to Rs 1.12 lakh crore in the same quarter last fiscal.

Brokerages like Jefferies and Nomura were impressed by Bandhan Bank's strong deposit growth in Q2, with the former attributing it to a 58 percent spike in bulk deposits to Rs 45,908 crore.

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On the other hand, retail deposits, including CASA were up 16.4 percent on year to Rs 96,603 crore, however CASA ratio declined to 33.2 percent in Q2 from 38.5 percent a year ago.

Also, the lender's loan-to-deposit ratio fell by nearly 260 basis points on quarter to 91.7 percent. Going ahead, Jefferies believes a decline in Bandhan Bank's loan-to-deposit ratio may act as  a near-term drag on its loan growth.

Aside from that, Jefferies, which has a 'buy' rating on Bandhan Bank with a price target of Rs 240, sees a clarity on recovery in Credit Guarantee Fund for Micro Units (CGFMU) and the arrival of a new CEO as the successor of Ratan Kumar Kesh as the potential catalysts for the stock price action.

Nomura agrees as the brokerage also believes the lender's performance on the asset quality
front and the impending CEO change remain key monitorables for the stock. Nomura however, has a 'reduce' call on the stock with a target price of Rs 170.

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