Buy Bandhan Bank; target of Rs 269: Geojit

Geojit is bullish on Bandhan Bank has recommended buy rating on the stock with a target price of Rs 269 in its research report dated August 21, 2023.

Broker Research

August 23, 2023 / 10:45 IST

Buy

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Geojit's research report on Bandhan Bank

Bandhan Bank operates as a commercial bank, offering checking accounts, savings deposits, and money market, mortgage, and term loan services, in addition to card facilities and Internet banking services. Net interest income (NII) remained flat sequentially, at Rs 2,491cr in Q1FY24 (+0.8% QoQ and -0.9% YoY), impacted by higher interest expenses and slippages. Gross non-performing assets (GNPA)/net non-performing assets (NNPA) ratios stood at 6.76%/2.18%. We expect advances and deposits to grow in the near term, led by retail assets and commercial banking. The management is confident of maintaining net interest margin (NIM) at 7-7.5% in FY24, while improving the current account savings account (CASA) ratio and credit cost . With its aim to diversify its asset portfolio and continuous investments in People, IT and expansion will help to achieve long term growth.

Outlook

Hence, we reiterate our BUY rating on the stock, with a reduced target price of Rs. 269, based on a 1.6x FY25E book value per share (BVPS).

For all recommendations report, click here