Jefferies has reiterated its ‘Buy’ rating on Bandhan Bank, assigning a target price of ₹185 per share, indicating an upside potential of nearly 18% from the current market price of ₹156.65. The brokerage highlighted the bank’s performance in Q4FY25, noting loan growth of 11% year-on-year, slightly lower than the 15% posted in Q3. Meanwhile, deposits grew 12% YoY, reflecting stability in the bank’s funding profile.
Loan-to-deposit ratio (LDR) moderated by 200 basis points to 91%, offering some balance-sheet comfort. However, MFI (Microfinance Institution) collection efficiency stood at 97.7%, which, while steady, remains below the normalized pre-stress levels.
Jefferies believes that sector-wide stress in microfinance remains a key overhang for Bandhan Bank’s re-rating, despite its relative resilience in asset quality and deposit growth. The brokerage adds that any signs of improved collection metrics and easing sector concerns could act as potential upside triggers for the stock.
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