Jefferies has maintained its ‘Buy’ rating on Bandhan Bank, with a target price of Rs 240. The Q2 update indicates steady balance sheet growth, though collection efficiency dropped quarter-on-quarter (QoQ).
Deposits grew by 27% year-on-year (YoY), driven by a 58% rise in bulk deposits. However, the loan-to-deposit ratio (LDR) fell by over 260 basis points QoQ to 92%, higher than most peers, which could potentially drag near-term loan growth. The collection efficiency of EEB loans declined QoQ, although other loan segments showed improvement.
Current market price (CMP): Rs 186.99 as of 8 AM, Oct 7, 2024
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