Bandhan Bank Ltd. (BANDHANBNK) AI Stock Analysis

• Market Cap: ₹241.00B
• Dividend Yield: 1%
• Average Volume (3M): 354.15K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.40
• Revenue Growth: 6.70%
• EPS Growth: -55.95%
• Country: IN
• Employees: 75,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.70
• Shares Outstanding: 1,610,971,400
• 10 Day Avg. Volume: 518,527
• 30 Day Avg. Volume: 354,148
• PEG Ratio: 0.38
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 2.45
• P/FCF Ratio: -1.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹170.00
• Price Target Upside: 13.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹158.00 ▲(5.61% Upside)

Bandhan Bank's overall stock score is primarily influenced by its financial performance and technical analysis. The significant revenue decline and negative cash flows are major concerns, despite strong profitability metrics. The technical indicators suggest a bearish trend, but the stock is nearing oversold levels. Valuation metrics indicate the stock is reasonably priced, offering a modest dividend yield.

Positive Factors

Strong Profitability Metrics

Strong profitability metrics indicate effective cost management and operational efficiency, which are crucial for long-term financial health.

Conservative Leverage Approach

A conservative leverage approach with a moderate debt-to-equity ratio enhances financial stability and reduces risk, supporting sustainable growth.

Market Position in Underbanked Segments

Targeting underbanked segments provides a competitive advantage and growth opportunities, aligning with long-term financial inclusion trends.

Negative Factors

Significant Revenue Decline

A significant revenue decline poses challenges to growth and may impact the bank's ability to invest in future opportunities.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, which can constrain the bank's operational flexibility and investment capacity.

Decline in EPS Growth

A decline in EPS growth suggests challenges in maintaining profitability, which could affect investor confidence and long-term valuation.

Bandhan Bank Ltd. Business Overview & Revenue Model

Company Description

Bandhan Bank Ltd. (BANDHANBNK) is a leading Indian bank that was established in 2015, primarily focusing on providing banking and financial services to the underbanked and unbanked segments of society. The bank operates through a diversified portfolio of products and services, including retail banking, microfinance, loans, savings accounts, fixed deposits, and various digital banking solutions. Bandhan Bank's operations are predominantly concentrated in the eastern and northeastern regions of India, where it aims to empower individuals and small businesses through accessible financial solutions.

How the Company Makes Money

Bandhan Bank generates revenue primarily through interest income from loans and advances provided to customers. The bank's revenue model is centered around lending activities, including personal loans, business loans, and microfinance, which are offered at competitive interest rates. Additionally, the bank earns fee-based income through various services such as account maintenance fees, transaction fees, and charges for advisory services. The bank also benefits from the interest spread between the interest earned on loans and the interest paid on customer deposits. Strategic partnerships with fintech companies and other financial institutions further enhance its product offerings and customer reach, contributing significantly to its overall earnings.

Bandhan Bank Ltd. Financial Statement Overview

Summary

Bandhan Bank faces a mixed financial outlook. While profitability metrics remain strong, significant revenue decline and negative cash flows pose challenges. The balance sheet is relatively stable with moderate leverage, but improving cash flow generation is crucial for future growth and stability.

Income Statement

Bandhan Bank's income statement shows a significant revenue decline of 55.33% in the latest year, indicating potential challenges in maintaining growth. However, the bank maintains a strong net profit margin of 27.97%, reflecting effective cost management. The EBIT and EBITDA margins are also healthy, suggesting operational efficiency despite revenue pressures.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.45, indicating a conservative leverage approach. The return on equity is reasonable at 11.16%, showing decent profitability relative to shareholder equity. The equity ratio of 12.85% suggests a stable financial position, though there is room for improvement in asset utilization.

Cash Flow

The cash flow statement highlights significant challenges, with negative operating and free cash flows in the latest year. The free cash flow to net income ratio is slightly above 1, indicating some ability to convert income into cash, but the negative growth in free cash flow is concerning. The operating cash flow to net income ratio is negative, pointing to potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	250.53B	249.15B	210.37B	183.67B	166.93B	145.45B
Gross Profit	144.08B	144.57B	124.86B	117.22B	115.36B	95.84B
EBITDA	30.12B	39.02B	31.80B	30.36B	2.39B	30.52B
Net Income	20.54B	27.45B	22.30B	21.95B	1.26B	22.05B
Balance Sheet
Total Assets	0.00	1.91T	1.78T	1.56T	1.39T	1.15T
Cash, Cash Equivalents and Short-Term Investments	0.00	95.69B	22.21B	21.43B	55.49B	61.93B
Total Debt	0.00	111.38B	389.73B	443.95B	365.77B	287.72B
Total Liabilities	-246.05B	1.67T	1.56T	1.36T	1.21T	975.85B
Stockholders Equity	246.05B	246.05B	216.10B	195.84B	173.81B	174.08B
Cash Flow
Free Cash Flow	0.00	-135.46B	60.37B	-46.57B	6.90B	-11.67B
Operating Cash Flow	0.00	-132.58B	65.95B	-42.45B	9.02B	-9.45B
Investing Cash Flow	0.00	-38.79B	16.91B	-16.18B	-6.12B	-18.04B
Financing Cash Flow	0.00	105.36B	185.59B	165.25B	211.61B	214.79B

Bandhan Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 149.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BANDHANBNK, the sentiment is Neutral. The current price of 149.6 is above the 20-day moving average (MA) of 147.89, below the 50-day MA of 156.72, and below the 200-day MA of 161.79, indicating a neutral trend. The MACD of -3.68 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 61.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:BANDHANBNK.

Bandhan Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CENTRALBK	78 Outperform	₹329.74B	7.06	―	1.61%	6.84%	31.01%
KARURVYSYA	76 Outperform	₹237.05B	11.26	―	0.88%	13.61%	16.82%
UCOBANK	75 Outperform	₹364.65B	14.10	―	1.34%	17.33%	45.79%
CUB	69 Neutral	₹203.08B	16.78	―	0.73%	14.95%	14.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PSB	65 Neutral	₹196.26B	16.56	―	0.25%	18.54%	67.80%
BANDHANBNK	52 Neutral	₹241.00B	19.62	―	1.00%	6.70%	-55.95%

Bandhan Bank Ltd. Corporate Events

Bandhan Bank Releases Q2 2025 Financial Results

Bandhan Bank Limited has announced the approval of its unaudited financial results for the second quarter and half-year ending September 30, 2025. The results were published in national and regional newspapers, ensuring transparency and accessibility for stakeholders, reflecting the bank’s commitment to regulatory compliance and stakeholder communication.

Bandhan Bank Appoints New Independent Director to Strengthen Governance

Bandhan Bank Limited has announced the appointment of Mr. Gauri Prosad Sarma as an Independent Director, effective October 28, 2025, subject to shareholder approval. This strategic appointment, following the Nomination and Remuneration Committee’s recommendation, aims to strengthen the bank’s governance and leadership, potentially enhancing its market position and stakeholder confidence.

Bandhan Bank Grants Equity Stock Options to Executive Directors

Bandhan Bank Limited has announced the grant of 643,983 equity stock options to its Executive Directors under the Bandhan Bank Employee Stock Option Plan Series 1. This move is part of the bank’s strategy to incentivize its leadership and align their interests with the company’s long-term goals. The stock options, which are priced at Rs. 166.99 each, will vest over a period of four years, with a maximum exercise period of five years. This initiative is expected to enhance executive commitment and potentially improve the bank’s performance and market position.

Bandhan Bank Reports Robust Growth in Q2 2025 Financials

Bandhan Bank Limited has reported its unaudited financial figures for the quarter ending September 30, 2025, showing a year-on-year increase in loans and advances by 7.2% and total deposits by 10.9%. The bank’s retail deposits have grown significantly, contributing to a higher retail-to-total deposits ratio of 71.4%, while bulk deposits have decreased. The bank’s liquidity coverage ratio stands at approximately 152.68%, indicating a robust liquidity position. These results suggest a strong operational performance and a strategic focus on enhancing retail deposit growth, which may positively impact the bank’s market positioning and stakeholder confidence.

Bandhan Bank Faces GST Demand Order for Alleged Tax Credit Issues

Bandhan Bank Limited has received a Demand Order from the Assistant Commissioner of CGST & C.EX, Division-IX, Mumbai, under Section 74 of the CGST Act, 2017. The order alleges that the bank availed excess or ineligible Input Tax Credit and failed to pay GST on cheque return charges for several financial years. The financial impact of the order is quantified at Rs. 2,17,61,705, but the bank states that there is no material impact on its financials or operations. Bandhan Bank is currently evaluating the case to consider potential legal remedies, including an appeal.

Bandhan Bank Announces Key Board Appointments

Bandhan Bank Limited announced changes in its Board of Directors following the recommendations of its Nomination and Remuneration Committee. The Board approved the appointment of Mr. Avijit Mukerji as an Additional Non-Executive Non-Independent Director, representing Bandhan Financial Holdings Limited, and recommended the re-appointment of Mr. Ratan Kumar Kesh as a Whole-time Director and Chief Operating Officer, subject to regulatory and shareholder approvals. These appointments are expected to strengthen the bank’s leadership and governance, potentially impacting its strategic direction and operational efficiency.

Bandhan Bank Grants Over 296,000 Stock Options to Employees

Bandhan Bank Limited has announced the grant of 296,455 equity stock options under its Employee Stock Option Plan Series 1 to eligible employees. This initiative, approved by the Nomination and Remuneration Committee, is part of the bank’s strategy to incentivize its workforce and align their interests with the company’s growth objectives. The options, priced at Rs. 167.08 each, will vest over four years, enhancing employee engagement and potentially impacting the bank’s operational dynamics by fostering a sense of ownership among employees.

Bandhan Bank Announces Change in Board of Directors

Bandhan Bank Limited announced a change in its board of directors as Ms. Divya Krishnan’s term as a Nominee Director concluded on August 27, 2025. Bandhan Financial Holdings Limited, the promoter of the bank, has withdrawn her nomination, and a new nominee will be proposed for consideration by the bank’s Nomination and Remuneration Committee and Board, following regulatory compliance.