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Hold Bandhan Bank; target of Rs 658: Arihant Capital

Arihant Capital recommended hold rating on Bandhan Bank with a target price of Rs 658 in its research report dated May 02, 2019.

May 06, 2019 / 02:18 PM IST
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Arihant Capital's research report on Bandhan Bank

Bandhan Bank has delivered a stellar set of numbers in 4QFY19, ahead of our expectation. It has reported strong numbers on all fronts – asset quality, AUM growth, profitability and margin. PAT jumped substantially by 68% YoY to Rs 651 cr, supported by strong topline growth. Strong AUM growth of 33% YoY, led to 46% YoY growth in NII resulting into sharp uptick in NIM. Robust growth in other income and higher margin with normal credit costs enabled Bandhan to deliver +5% RoA during the quarter. Asset quality trend continued to improve as GNPAs declined by 37bps QoQ to 2% (Ex-IL&FS – 1%), and PCR was steady at 72%. Liability profile of the bank continue to improve with a deposit growth of 28% YoY. Retail deposits account for 77.4% of the total deposits. Cost-to-income ratio improved significantly largely due to strong income growth whereas OPEX growth was virtually at same rate. CI for the quarter stood at 29.9% vs 33.7% QoQ.


We Maintain our ‘Hold’ rating with revised target price of Rs 658, giving an upside potential of 5%.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 6, 2019 02:18 pm

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