Jefferies has maintained a “Buy” rating on Bandhan Bank, setting a target price of ₹240. With the current market price at ₹187.90, this implies a potential upside of approximately 27.7%.
The Reserve Bank of India (RBI) has appointed Partha Sengupta as the new Managing Director and CEO of Bandhan Bank for a three-year term. Jefferies sees this as a positive move, as Sengupta brings extensive experience, having served as Deputy MD and Chief Credit Officer at SBI and MD & CEO of Indian Overseas Bank. His experience in West Bengal, a crucial market for Bandhan Bank, adds further value.
Additionally, the bank is set to receive ₹3.1 billion under the Credit Guarantee Fund for Micro Units (CGFMU) scheme, adding to its profit pool and credibility, along with a ₹2.3 billion recovery. With past stresses cleared and valuations attractive at 1.1x FY26 adjusted price-to-book, Jefferies maintains a bullish outlook on the stock.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions.
