Moneycontrol
Get App
Last Updated : May 06, 2019 02:18 PM IST | Source: Moneycontrol.com

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.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

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.


Outlook


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 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.



India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
First Published on May 6, 2019 02:18 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant