Shares of Bandhan Bank surged nearly 5% on Friday, touching an intraday high of ₹150.50 on the BSE, after leading brokerages Motilal Oswal and JM Financial upgraded the stock and raised their target prices.
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The positive brokerage action boosted investor sentiment, leading to strong buying interest in early trade.
Bandhan Bank jumped 5%
Shares of Bandhan Bank jumped 5% to their day’s high of Rs 150.50 on the BSE on Friday after Motilal Oswal and JM Financial upgraded the stock.
Neal Bhai upgraded the stock to buy rating and assigned a target price of Rs 175 per share, implying an upside 23% from current market levels. “Valuations, after five years of de-rating, look reasonable. Although we remain watchful of forthcoming West Bengal elections, we strongly believe that the current risk-reward is favorable,” the brokerage said in a note.
The domestic brokerage added that loan growth is expected to gain momentum, positioning the bank to benefit from an improving operating environment. With forward flows stabilising and slippages moderating, credit costs are likely to ease over the coming quarters, with management guiding for an FY27 exit credit cost of 1.6–1.7%.
JM Financial upgraded Bandhan Bank to ADD with a revised target price of Rs 160 (13% upside), valuing the stock at 0.8x FY28E BVPS, citing limited downside at the current valuation of 0.7x FY28 P/B. The recent clean-up of the stressed portfolio has led to a reduction in GNPA and NNPA, although fresh slippages from the MFI segment remain elevated at around 7.3%, warranting close monitoring. JM Financial expects a loan CAGR of approximately 15% over FY26–28E and average ROA/ROE of 1.2%/11% during FY27–28E.
As for Q3, the lender reported a sharp 52% year-on-year decline in its December quarter net profit at Rs 206 crore, compared with Rs 426 crore in the same period last year. Net interest income (NII) also declined 4.5% YoY to Rs 2,688 crore from Rs 2,814 crore.
On a sequential basis, however, performance improved meaningfully. Profit after tax surged 84% QoQ from Rs 112 crore in Q2FY26, while NII rose 4% quarter-on-quarter from Rs 2,589 crore. Net interest margin (NIM) for the quarter stood at 5.9%, marginally higher than 5.8% in the previous quarter. Operating profit increased 10% QoQ to Rs 1,445 crore in Q3FY26 from Rs 1,310 crore in Q2FY26.
As of December 31, 2025, total deposits stood at Rs 1.57 lakh crore, compared to Rs 1.41 lakh crore a year ago, registering an 11% YoY growth. CASA deposits were Rs 42,730 crore, with the CASA ratio at 27%. The combined CASA and retail term deposit ratio remained healthy at over 72% of total deposits.
Gross advances rose 10% YoY to Rs 1.45 lakh crore as of December 31, 2025, from Rs 1.32 lakh crore in the previous year. Within the portfolio, the retail book (excluding housing) grew 57% YoY, wholesale banking expanded 32%, while the housing book grew 10% (excluding IBPC).
The bank’s distribution network comprises over 6,350 outlets, supported by a workforce of more than 74,500 employees.
Commenting on the performance, MD & CEO Partha Pratim Sengupta said that Bandhan Bank’s third-quarter performance over the last few quarters reflects strengthening fundamentals and a steady turnaround. He added that in Q4, the bank plans to accelerate multiple digital initiatives to enhance customer experience, operational efficiency, and scalability. “We remain fully committed to building a strong, more resilient and more diversified bank. These efforts position us well for sustainable and profitable growth going forward,” he said.
Bandhan Bank shares rose after Motilal Oswal and JM Financial upgraded the stock and issued positive outlooks.
2. What is the latest target price for Bandhan Bank?
Brokerages have set target prices around ₹165—175, indicating upside potential from current levels.
3. Is Bandhan Bank a good stock to buy now?
Analysts are positive, but investors should assess market risks and their investment horizon.
Motilal Oswal and JM Financial both upgraded the stock.
5. Is Bandhan Bank suitable for long-term investment?
The bank is improving fundamentals, but long-term investors should track quarterly performance and asset quality.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.
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