Jefferies has maintained a ‘Buy’ rating on Bandhan Bank with a target price of ₹210/share, representing a potential upside of 33.2% from the current market price (CMP) of ₹157.65.
In its Q3 update, the bank reported a moderation in loan growth, while deposits were primarily driven by a 31% increase in bulk deposits. The loan-to-deposit ratio (LDR) growth could act as a near-term drag on loan growth. However, Bandhan Bank is better positioned than peers to navigate challenges in the microfinance (MFI) segment.
An improvement in the broader MFI market is expected to support a re-rating of the stock, providing potential growth opportunities.
Disclaimer: The above analysis is based on inputs provided and is for informational purposes only. It does not constitute financial advice. Readers are advised to consult their financial advisors before making any investment decisions.
