Hold Bandhan Bank; target of Rs 265: ICICI Direct

ICICI Direct's research report on Bandhan Bank

Bandhan Bank was incorporated in 2015 as the RBI granted a universal banking license. The bank has a strong presence in eastern and northeastern India with MFI loans being its forte while acquisition of Gruh Finance boosted the home loan book. Total 54% of loans are from emerging enterprise business (EEB) • The bank has 1250 branches in 35 states, UTs & customer base of 2.7 crore.

Outlook
Hence, we maintain our HOLD rating on the stock. Rolling to FY25E, we value Bandhan Bank at ~1.9x FY25E ABV and revise our target price from Rs 300 to Rs 265. Steady state performance will be key for a re-rating.

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