Bandhan Bank shares surged over 5% on Monday's trade

Shares of Kolkata-based private sector lender Bandhan Bank rallied 5.4% to Rs 249.85 in Monday's trade even after the bank reported a 66.2% YoY dip in its December quarter profit at Rs 290.6 crore, while its net interest income (NII) dropped 2.1% on-year to Rs 2,080.4 crore.

The bank's net NPAs as on December 31, 2022, improved to 1.9% against 3.0% as on December 31, 2021.

During the quarter, Bandhan Bank's total deposits increased by 21% to Rs 1,02,283.2 crore, while total advances grew 11.1% to Rs 97,787.1 crore.

The bank's PCR stood at 75.4% as on December 31, 2022, against 74.4% in the year-ago period while the capital adequacy ratio was at 19.1%. 

During Q3, it added 9 lakh new customers with the total customer base reaching 28.6 million.

Its net interest margin reduced to 6.5% on a quarter-on-quarter basis.

Bandhan Bank said its banking outlets as of December-end stood at 5,723, including 1,250 branches and 4,473 banking units.

During the quarter, the number of employees of the bank has gone up from 64,078 to 66,114.

Kotak Institutional Equities maintained its add rating on Bandhan Bank with a target price of Rs 270 (from Rs 280 earlier).

CLSA maintained its buy rating on Bandhan Bank post Q3 results with a target price of Rs 320. MFI stress is coming down on expected lines.

The global investment bank expects normalised provisioning now NIMs down, but at the bottom; we expect a sharp pick-up. Loans down due to write-offs.