Shares of Bandhan Bank Ltd gained 2.8% to Rs 155.18 on Wednesday, November 12, after global brokerage Macquarie reiterated its ‘Long’ call on the lender, citing an improved risk-reward profile following a steep correction in the stock post-earnings.
According to the Macquarie sales note, valuations remain attractive at 0.7x FY27 price-to-book, offering meaningful upside potential as the bank works to restore profitability and improve asset quality metrics. The report highlighted that credit costs are expected to decline from current elevated levels given the high base in the September quarter, when slippages and write-offs were elevated.
Macquarie added that Bandhan Bank remains one of the most shorted banking stocks, which could spark a short-covering rally as fundamentals stabilize. The brokerage believes lower margin compression, improvement in microfinance book performance, and normalized credit costs could drive gradual earnings recovery ahead.
As of 1:30 PM, Bandhan Bank shares were trading at Rs 155.18, up Rs 4.24 or 2.81%, compared to the previous close of Rs 150.94.
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