The Bandhan Bank share rallied 10% to hit a fresh 52-week high after it reported a strong set of quarterly earnings.
Bandhan Bank: Q4 highlights
The lender posted a net profit jump of 68% year-over-year (YoY) in the fourth quarter of FY26 to Rs 534 crore, compared with Rs 318 crore in the same period a year ago.
The bank kept aside Rs 677 crore for provisions, compared with Rs 1,260 crore in the year-ago period. Gross non-performing assets (GNPA) improved to 3.27% at the end of March from 4.71% a year prior.
The company’s operating profit came in about 8% lower at Rs 1441 crore in Q4FY26 from Rs 1571 crore in Q4FY25, due to higher staff cost, tech investment, and other operating expenses.
However, the lender’s net interest margin improved to 6.2% from 5.9% in the last quarter. The ratio stood at 6.7% in the fourth quarter a year back.
Bandhan Bank: FY26 performance
For the whole of FY26, the bank reported an annual net profit of Rs 1224 crore as compared with Rs 2745 crore.
Also, the board has recommended a 15% dividend for the fiscal year, that is Rs 1.50 per equity share having a face value of Rs 10 each.
The bank’s loan book grew by 12.6% YoY to Rs 1.54 lakh crore, while the share of unsecured group loans reduced to 23.1% from 26.3% a year prior.
JM Financial on Bandhan Bank
The bank reported a strong Q4FY26, driven by sharply lower provisions and continued improvement in asset quality, said JM Financial. This led the brokerage house to raise the target price to Rs 200 from Rs 160, implying an upside of 25% from the current market price, while maintaining an ‘Add’ rating.
“Management maintained the FY27 exit RoA guidance of 1.6–1.8%. The stock trades at an attractive 1x FY28 P/BV,” said JM Financial.
Motilal Oswal on Bandhan Bank
Motilal Oswal Financial Services has also increased the target price on Bandhan Bank to Rs 210, looking at an upside of over 18%. The brokerage house maintained its ‘Buy’ rating on the stock.
“We had upgraded Bandhan in Q3FY26 on the back of improving visibility on growth and improvement in asset quality. We estimate Bandhan to deliver RoA of 1.3% and 1.5% in FY27 and FY28,” said the brokerage.
The bank’s management expects loan growth to remain healthy at 14-15%, with advances likely to grow in line with or ahead of overall business growth. NIMs improved to 6.2%, and are guided to expand further by 10-20 basis points over the next 2-3 quarters, aided by the repricing of term deposits.
Bandhan Bank share price performance
The share price of Bandhan Bank has risen 3% in the last five trading sessions. The stock has given a return of 26% in the last one month and 3.4% in the past six months. Bandhan Bank’s share price has increased more than 6% in the previous 12 months.