Shares of Bandhan Bank surged as much as 9.4 percent in early trade on Wednesday, April 29, after the lender reported a strong Q4 FY26 performance. Bandhan Bank shares were trading at Rs 195.4 in morning deals, recovering from Tuesday’s close of Rs 178, which had declined 2.13 percent ahead of the results announcement.
The sharp rise in Bandhan Bank shares was driven by robust quarterly numbers, with the January-March period reflecting a significant jump in profitability and continued improvement in asset quality. The bank posted a 68 percent year-on-year increase in net profit to Rs 534 crore. This growth was supported by lower credit costs and higher fee income, even though core income growth remained modest. Net interest income (NII) rose 1.4 percent to Rs 2,795.4 crore.
Asset quality trends further boosted investor sentiment around Bandhan Bank shares. Gross non-performing assets (NPA) eased to 3.27 percent from 3.33 percent in the December quarter, while net NPA declined to 0.97 percent from 0.99 percent sequentially. Additionally, collection efficiency improved to 98.9 percent, reflecting stronger recovery performance.
Bandhan Bank Shares Supported by Strong Growth in Loans and Deposits
On the business front, the bank reported steady growth in key segments. Loans and advances rose 12.6 percent year-on-year to Rs 1.54 lakh crore, while deposits increased 10 percent to Rs 1.66 lakh crore. Retail deposits saw strong traction, rising 17.7 percent year-on-year and accounting for 73.67 percent of total deposits, indicating a shift towards a more stable and diversified funding base. The bank also maintained a healthy liquidity coverage ratio of 131.76 percent.
Brokerages remained largely positive on Bandhan Bank shares, with most firms maintaining buy or outperform ratings. Analysts highlighted improving asset quality, reduced credit costs, and a gradual recovery in profitability as key positives.
CLSA maintained its outperform rating and raised the target price to Rs 220 per share, noting that this marks the second consecutive strong quarter after a prolonged period of stress. It also pointed to an improvement in return on assets to 1 percent after six quarters and better net interest margins supported by term deposit repricing.
Also Read : Lenskart Backtracks After Hijab Allowed, Bindi and Kalava Ban Style Guide Sparks Outrage
Jefferies retained its buy rating with a target price of Rs 215, citing a profit beat led by lower credit costs and higher fee income, along with improving stability in the microfinance segment.
However, UBS maintained a neutral stance while raising its target price to Rs 200. The brokerage noted that although asset quality and credit costs have improved, much of the recovery in Bandhan Bank shares appears to be already priced in.
The bank’s management has indicated a stable outlook going forward, targeting loan growth of 14-15 percent with a broadly steady portfolio mix. It also expects further margin improvement of 10-20 basis points and a gradual increase in fee income, which could continue to support Bandhan Bank shares in the near term.