Hold Bandhan Bank, target price Rs 265: ICICI Direct

ICICI Direct has hold call on Bandhan Bank with a target price of Rs 265. The current market price of Bandhan Bank is Rs 249.3. Time period given by analyst is a year when Bandhan Bank price can reach defined target.


Bandhan Bank, incorporated in the year 2014, is a banking company (having a market cap of Rs 39996.96 Crore).

Bandhan Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 4840.94 Crore, up 13.91 % from last quarter Total Income of Rs 4249.87 Crore and up 17.47 % from last year same quarter Total Income of Rs 4120.95 Crore. The bank has reported net profit after tax of Rs 290.57 Crore in latest quarter.

Investment Rationale
The brokerage maintains that healthy loan growth guidance (~22% + YoY) with higher growth traction in non-MFI book to aid margins and earnings growth. Moreover, the management indicated pressure on deposits to ease, going ahead, and focus will be on retail deposits.

Recovery from Assam relief scheme to aid topline and keep credit cost steady, noted ICICI Direct.

Promoter/FII Holdings
Promoters held 39.99 per cent stake in the company as of 31-Dec-2022, while FIIs owned 28.34 per cent, DIIs 12.46 per cent.