Archive · 22 Jul 2026
Bandhan Bank Cuts RoA Guidance, Mixed Broker Reactions
Bandhan Bank, a private lender based in Kolkata, announced its first-quarter results on July 22, 2024.
The bank cut its return on assets (RoA) guidance to 1.2% to 1.4% from the previous 1.6% to 1.8%.
The management also mentioned that margins might be under pressure due to higher deposit costs and other risks.
Brokerage firms had mixed reactions.
Motilal Oswal downgraded the stock to 'hold' but maintained a price target of ₹225.
JPMorgan kept a 'neutral' rating with a price target of ₹175, indicating a 15% downside.
Nomura also maintained a 'neutral' rating with a price target of ₹190.
However, CLSA kept an 'outperform' rating with a price target of ₹235, and Jefferies saw some benefits from FCNR-B inflows.
The stock ended 1.8% lower on Tuesday but is up 44% so far this year.
Bandhan Bank cuts RoA guidance to 1.2%-1.4% from 1.6%-1.8%.
Management highlights risks including higher deposit costs and uncertain global environment.
Motilal Oswal downgrades stock to 'hold' with ₹225 price target.
JPMorgan maintains 'neutral' rating with ₹175 price target, indicating 15% downside.
CLSA maintains 'outperform' rating with ₹235 price target.
- Who
- Bandhan Bank Ltd., brokerage firms (Motilal Oswal, JPMorgan, Nomura, CLSA, Jefferies)
- What
- Bandhan Bank cuts RoA guidance, mixed broker reactions
- When
- Q1 results announced on July 22, 2024
- Where
- Kolkata, India
- Why
- Higher deposit costs, uncertain global environment, monsoon, higher technology costs
Bearish View
Bullish View
RoA Guidance Cut
Bearish View
Significant cut to RoA guidance indicates potential downside.
Bullish View
Downside appears cushioned at current valuation.
Earnings Estimates
Bearish View
Earnings estimates cut by 14% and 6% for FY27 and FY28.
Bullish View
Estimates already lower than guidance cut.
- Bank
- Bandhan Bank Ltd.
- Headquarters
- Kolkata, India
- Q1 Results Announcement
- July 22, 2024
- Exit RoA Guidance Cut
- 1.2% to 1.4% from 1.6% to 1.8%
- Loan Growth Guidance
- Lower end of 14% to 15%
- Stock Price (July 22, 2024)
- ₹207.5
- Year-to-Date Performance
- Up 44%