Bandhan Bank Share Price Target Forecast 2022, 2023, 2025, 2030

29 OCTOBER 2021

Bandhan Bank reports a Rs 3,008.6 crore loss in the second quarter as provisions rise, but net interest income rises 0.6 percent.

Bandhan Bank, a private sector lender, announced a standalone loss of Rs 3,008.6 crore for the quarter ended September 2021 on October 29, owing to a large rise in provisions for bad loans and a drop in operational profit.

In the September 2020 quarter, the bank had a profit of Rs 920 crore.

“As the second wave of COVID fades, we’ve noticed a significant improvement in collections this quarter.” We’ve discovered the source of tension and have created additional measures in a rush to fulfil any last-minute requirements and start fresh. According to Chandra Shekhar Ghosh, Managing Director and CEO, “this has resulted in a loss for the quarter.”

“It will, however, assist us in focusing on new company growth and accomplishing long-term goals with new vitality,” he added.

In Q2 of FY22, net interest income (the difference between interest received and interest paid) increased by 0.6 percent year on year to Rs 1,935.4 crore, owing to 6.6 percent growth in the loan book and a contraction in the net interest margin. Is.

In a BSE report, Bandhan Bank said advances increased by 6.6% to Rs 81,661.2 crore during the quarter, while deposits increased by 23.9 percent to Rs 81,898.3 crore.

The net interest margin in the September 2021 quarter was 7.6%, up from 8% the previous quarter and 8.5 percent in the June 2021 quarter, according to the bank.

In terms of asset quality, gross non-performing assets (NPAs) as a proportion of gross loans increased dramatically to 10.8% in September 2021, up from 8.2% the previous quarter. However, net nonperforming assets (NPAs) dropped to 3% from 3.3 percent the previous quarter.

The bank said it reorganised the Emerging Entrepreneur Business (EEB) portfolio of Rs 3,490 crore and the non-EEB portfolio worth Rs 268 crore in the second quarter of FY21-22, totaling Rs 3,758 crore.

Bandhan Bank recorded provisions and contingencies of Rs 5,577.91 crore in Q2FY22, up from Rs 1,442.02 crore in Q1FY22 and Rs 379.59 crore in Q2FY21. The bank has 5,618 banking branches as of September 2021.

“The bank has made expedited provisioning on NPA accounts of Rs 1,500 crore during the quarter, resulting in a provision coverage ratio of 74 percent, as opposed to 62 percent in Q1FY22,” Bandhan Bank stated.

For a total of Rs 4,630 crore, the bank has made an extra standard asset provision of Rs 2,100 crore and a provision on restructured assets of Rs 1,030 crore.

Non-interest income climbed by 34% to Rs 491.6 crore in the quarter, while operating profit fell by 3.9 percent to Rs 1,549.2 crore, compared to the same period the previous year.

On the BSE, the stock ended the day 2.36 percent down at Rs 291.50, ahead of corporate earnings.

Moneycontrol.com is the source for this information.


AUGUST 2, 2021

Despite a drop in Q1 earnings, brokers expect Bandhan Bank to rise by up to 49%.

After the bank announced its June quarter results, Bandhan Bank’s stock jumped more than 2% in the morning session on August 2.

Bandhan Bank reported a 32% drop in net profit for the June quarter 2021-22, to Rs 373.10 crore, as provisions for bad loans increased. In the same quarter a year before, the bank had a net profit of Rs 549.80 crore.

Total income, on the other hand, increased by 20.4 percent to Rs 2,647.50 crore in the quarter, compared to Rs 2,198.30 crore the year before, the bank said in a regulatory statement.

As of June 30, 2021, the bank’s gross non-performing assets (NPAs) increased to 8.2 percent of gross loans, up from 1.4 percent in June 2020. Net nonperforming assets (NPAs) grew from 0.5 percent to 3.3 percent.

The provision for bad loans and contingencies rose to Rs 1,374.87 crore in the quarter, up from Rs 849.06 crore the previous quarter.

The stock was trading at Rs 299.20, up Rs 7.90, or 2.71 percent, from its previous close. It has traded between a high of Rs 303.45 and a low of Rs 292.50 during the day.

CLSA | Rating: Underperform | Target: Rs 300

In Assam, a government package keeps asset quality from deteriorating. This will almost certainly avoid a horrible situation from developing. The MFI tension in Bengal is still strong. Overall, restructuring and ECLGS remain high, indicating that a speedy normalisation is unlikely.

Goldman Sachs | Rating: Buy | Target: Rs 447

The bank had a successful operating quarter, with PPoP exceeding expectations by 4%. The construction, and especially the stringent local lockdown, had a significant impact on the property’s quality. The stock’s BUY rating was retained, although it was taken off the brokerage’s punishment list. In the short term, macro uncertainty may have an impact on the stock’s performance.

JP Morgan | Rating: Overweight | Target: Rs 390

Asset quality is expected to break out of the bottom by September, according to the brokerage, as stress levels rise. Based on the restructured Book and SMA 1/2 pool, it forecasts a net provisioning charge of 6.2 percent.

Kotak Institutional Equities: Rating: Add | Target: Rs 335

The bank reported a 32 percent drop in earnings year over year, owing to greater provisions. With 8% gross NPL, the impaired ratio is currently high. If the economy improves, the bank’s performance may improve in the second half.

Moneycontrol.com is the source for this information.


16 JULY 2021

Emkay Global Financial sets a price target of 390 for Bandhan Bank’s stock.

Bandhan has a bullish outlook at Emkay Global Financial. The company was given a BUY rating by the Bank in its Research Report dated July 16, 2021, with a target price of Rs 390.

Bandhan Bank’s AUM increased at a slower pace of 8% yoy (down 8% qoq) to Rs 801 billion. We believe this is mostly due to fewer MFI and small business loan disbursements as a result of Covid-led disruptions in eastern India, which is currently under lockdown.

Equitas SFB’s AUM was down 15% p.a./less dependence on 0.5 percent qoq, whereas Ujjivan, a comparatively close rival, reported a 2% yoy/7 percent qoq decrease in AUM, although the impact on growth was relatively minor, with its AUM down 15% p.a./less reliance on 0.5 percent qoq. MFI publication.

Outlook

Despite the near-term asset-quality risk, we have a buy recommendation on the company (TP: Rs 390) based on our goal to diversify the asset portfolio away from MFIs, both in terms of products and region, with a strong liability profile. Better return ratio (ROA) / RoE of 2.5-3.4 percent /17-25 percent over FY22-24E) and reasonable valuation (2.2x FY23E ABV/1.7x FY24E ABV).

Moneycontrol.com is the source for this information.


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