Synopsis: Bandhan Bank reported strong Q4 profit growth, but full-year earnings declined. Brokerages remain mixed, with targets ranging from Rs. 130 to Rs. 220, citing improving asset quality but a cautious outlook on sustained growth.
This Mid-cap Private Sector Bank, engaged in providing banking and financial services, including retail lending, microfinance, deposits, and other services across India, jumped 13.18 percent after the company reported its March quarterly results, while brokerages shared mixed positive views on its future outlook.
With a market capitalization of Rs. 31,832.94 crores, the share of Bandhan Bank Limited has reached an intraday high of Rs. 201.80 per equity share, rising nearly 13.18 percent from its previous day’s close price of Rs. 178.30. Since then, the stock has retreated and is currently trading at Rs. 200.25 per equity share.
Q4 FY26 Result Walkthrough:
Coming into the quarterly results of Bandhan Bank Limited, the company’s consolidated net interest income increased by 1.44 percent YOY, from Rs. 2,755.89 crore in Q4 FY25 to Rs. 2,795.59 crore in Q4 FY26, and grew by 4 percent QoQ from Rs. 2,688.3 crore in Q3 FY26.
In Q4 FY26, Bandhan Bank Limited’s consolidated net profit increased by 68.02 percent YOY, reaching Rs. 534.14 crore compared to Rs. 317.9 crore during the same period last year. As compared to Q3 FY26, the net profit has increased by 158.35 percent, from Rs. 205.59 crore. The basic earnings per share increased by 68.53 percent and stood at Rs. 3.32 as against Rs. 1.97 recorded in the same quarter in the previous year, FY2025.
Annual Performance of FY26:
Bandhan Bank Limited’s net interest income has decreased from Rs. 11,490 crore in FY25 to Rs. 10,830 crore in FY26, which is a drop of 5.74 percent. The net profit has also decreased by 55.64 percent from Rs. 2,750 crore in FY25 to Rs. 1,220 crore in FY26.
Bandhan Bank Limited’s net interest income has grown at a CAGR of 7.44 percent over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 6.41 percent and 4.91 percent, respectively. Bandhan Bank Limited has an earnings per share (EPS) of Rs. 7.60, and its debt-to-equity ratio is 7.15x.
Brokerage Viewpoints:
CLSA, a prominent brokerage firm, has recommended a “Outperform” call on Bandhan Bank Limited with an increased target price to Rs. 220 from Rs. 190 per share, indicating an upside potential of 23.39 percent from its previous day’s close price of Rs. 178.30 per share.
CLSA maintains an Outperform rating on Bandhan Bank after another strong quarterly performance, marking a turnaround following several weak quarters since mid-2024. A key positive was the sharp improvement in asset quality, with lower slippages and a significant reduction in credit costs, indicating better control over stressed loans and improved balance sheet health.
Looking ahead, management’s guidance of 14-15 percent loan growth and a stable portfolio mix provides visibility on business expansion. Margins are also expected to improve by 10–20 basis points over the next few quarters, which should support profitability. This combination of improving asset quality, steady growth, and margin expansion underpins confidence in earnings recovery and justifies a positive outlook on the stock.
Similarly, Jefferies has recommended a “buy” call on Bandhan Bank Limited with a target price of Rs. 215 per share, indicating an upside potential of 20.58 percent from its previous day’s close price of Rs. 178.30 per share.
Jefferies maintains a Buy rating on Bandhan Bank, highlighting improving stability in the microfinance (MFI) segment. Better repayment trends, especially in election-bound states, are supporting credit quality and reducing stress in the loan book, which is a key positive for the bank’s near-term outlook.
The brokerage also sees scope for net interest margin (NIM) expansion, which could support earnings recovery over FY27–28. While estimates have been adjusted post Q4 results, Jefferies remains slightly conservative given sector volatility, but still expects a gradual turnaround in profitability.
Furthermore, UBS has recommended a “Neutral” call on Bandhan Bank Limited with an increased target price to Rs. 200 from Rs. 180 per share, indicating an upside potential of 15.07 percent from its previous day’s close price.
UBS maintains a Neutral rating on Bandhan Bank, noting that while management targets a 1.6-1.8 percent RoA by FY27, much of the asset quality improvement is already reflected in the current valuation. The stock is trading near 1x its estimated FY27 price-to-book, limiting further upside, and suggesting a balanced risk-reward from current levels.
Macquarie has also recommended a “underperform” call on Bandhan Bank Limited with a target price of Rs. 130 per share, indicating a downside potential of 35.08 percent from its current price of Rs. 200.25 per share.
Macquarie maintains an Underperform rating on Bandhan Bank, noting that lower credit costs largely drove the recent PAT beat, while slippages remained moderate and loan growth showed some improvement. Lower borrowing costs are also expected to support NIM expansion in the near term.
However, the brokerage views management’s FY27 guidance as ambitious and believes consistent execution is key for any meaningful re-rating. Until then, it remains cautious on the stock’s outlook.
Additionally, JPMorgan has recommended a “neutral” call on Bandhan Bank Limited with a target price of Rs. 130 per share. Investec has recommended a “Hold” call on Bandhan Bank Limited with a target price of Rs. 180 per share.
Key Financial Parameters:
Bandhan Bank Limited reported a marginal improvement in asset quality, with gross NPA declining to 3.27 percent from 3.33 percent QoQ and net NPA easing to 0.97 percent from 0.99 percent. Net interest margin (NIM) improved by 30 basis points to 6.2 percent, indicating better profitability and efficient cost management. The steady reduction in NPAs along with rising margins reflects improved credit discipline and a strengthening overall financial position for the bank.
Company Overview:
Bandhan Bank is an Indian private-sector universal bank headquartered in Kolkata, West Bengal. Founded in 2015, it evolved from a microfinance institution into a full-fledged bank focused on financial inclusion. It serves millions of customers across urban, semi-urban, and rural India, emphasizing access for the underbanked.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
