Motilal Oswal's research report on Bandhan Bank
Bandhan Bank (BANDHAN) reported a healthy beat on PAT at INR10.6b (+47.5% YoY) fueled by controlled opex and provisions. NII grew 20.7% YoY to INR30.1b (in line). Margin was stable QoQ at 7.6%. Opex grew 21% YoY/dipped 8% QoQ to INR15.9b (8% lower than MOFSLe). C/I ratio thus moderated 331bp QoQ to 45.1% in 1QFY25. Advances grew at 23.8% YoY/0.4% QoQ, whereas deposit growth was modest at 22.8% YoY/down 1.5% QoQ. CASA ratio, thus, moderated 372bp QoQ to 33.4% during the quarter.
Outlook
We raise our earnings estimates for FY25/26 by 10%/11% and expect an FY26E RoA/RoE of 2.2%/ 18.9%. Reiterate Neutral with a revised TP of INR220 (premised on 1.3x FY26E ABV).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
