Bank of America (BofA) has maintained its ‘Neutral’ rating on Bandhan Bank, with a target price of ₹220. The investor meeting revealed key takeaways focused on ensuring consistency through different business cycles. The bank’s strategy, termed “Bandhan 2.0,” aims at delivering moderate but more consistent growth and return on assets (RoAs).
In the near term, BofA highlights the impact of microfinance institution (MFI) stress, updates on the Credit Guarantee Fund for Micro Units (CGFMU), and the confirmation of the CEO’s position. For the medium term, Bandhan Bank is targeting 16-18% growth along with a 2% RoA, supported by a shift in its business mix. BofA remains cautious but optimistic about the bank’s potential for steady growth amidst challenges.
