Bandhan Bank Shares Hit Over Four-Month High As Profit Jumps, Provision Declines

Share price of Bandhan Bank rose nearly 5% in Friday's trading session after the company reported a nearly sixfold increase in net profit for the quarter ended March.

The bottom line of the Kolkata-headquartered lender rose 481% to Rs 317 crore versus Rs 54.6 crore in the year-ago period, according to financial results released on Wednesday. Analysts' consensus estimates compiled by Bloomberg estimated Rs 467 crore.

The provisions (other than tax) and contingencies were lower by 29% at Rs 1,260 crore compared to Rs 1,774 crore in the March quarter of FY24. On a sequential basis, it fell 8.41%. The net interest income declined 4% to Rs 2,756 crore. Net interest margin for the quarter was 6.7%.

Asset quality marginally deteriorated with the share of gross non-performing assets rising to 4.71% from 4.68% in the previous quarter. Net NPA stood flat at 1.28%.

Bandhan Bank's board recommended a dividend of Rs 1.5 apiece for the financial year ended March 31 for the approval of shareholders at the annual general meeting.

The scrip rose as much as 4.72% to Rs 173.43 apiece, the highest level since Dec. 12, 2024. It pared gains to trade 0.47% lower at Rs 164.81 apiece, as of 10:24 a.m. This compares to a 0.98% advance in the NSE Nifty 50 Index.

Share price has risen 3.58% on a year-to-date basis but has fallen 13.63% in the last 12 months. Total traded volume so far in the day stood at 1.59 times its 30-day average. The relative strength index was at 52.27.

Out of 29 analysts tracking the company, 14 maintain a 'buy' rating, 10 recommend a 'hold,' and five suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 7.4%.