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Buy Bandhan Bank; target of Rs 281: Anand Rathi

Anand Rathi is bullish on Bandhan Bank has recommended buy rating on the stock with a target price of Rs 281 in its research report dated May 13, 2020.

May 16, 2020 / 03:37 PM IST
 
 
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Anand Rathi 's research report on Bandhan Bank


Bandhan bank’s Q4FY20 operating performance was strong in terms of NII growth, improvement in cost to income ratio and better asset quality. Bank missed its earnings as provisions were up sharply. Q4FY20 numbers are for merged entity (Bandhan + Gruh) hence, YoY numbers are not comparable. The bank has made provision buffer of Rs 690 cr on Covid-19 related crisis, well beyond the RBI’s prescribed limit. With this the bank now holds total additional provision of Rs 1000 cr (Rs 310 cr additional for standard asset). The bank has witnessed healthy business growth with advances growth at 10% QoQ and deposit growth at 4% QoQ. Management indicated that 76% of the bank’s portfolio remains under the green zone & Orange zone.


Outlook


We retain our Buy rating with a revised TP of Rs 281 (from Rs 270 earlier).


For all recommendations report, click here


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first published: May 16, 2020 03:37 pm

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