Bandhan Bank - On The Path To Recovery; To Diversify Loan Book Further: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We believe Bandhan Bank Ltd.’s strategy to diversify away from the micro finance institution segment, focus on restoring asset quality, and pursue geographical diversification is heading in the right direction for long-term sustainability. We note that the stock has seen significant de-rating and it now trades at 1.1 times FY26E adjusted book value. The ongoing audit regarding the credit guarantee fund for micro units claim has hit sentiments and remains a major overhang on the stock performance in near term. Further, the Resreve Bank of India’s approval for a fresh CEO term is also a key monitorable. .Bandhan Bank has recently hired several key management personnel to drive its overall business performance. The management bandwidth has thus expanded with the onboarding of Mr Rajinder Kumar Babbar – ED and Chief Business Officer, Mr Ratan Kumar Kesh – ED and Chief Operating Officer, Mr Santosh Nair – Head Consumer Lending and Mortgages, and Mr Rajeev Mantri – CFO. The bank now has two Executive Directors on the Board versus the regulatory requirement of having a minimum of one ED. We expect Bandhan Bank to deliver steady improvement in return on asset/return on equity to about 2%/17% by FY26, driven by loan growth recovery, moderation in credit costs, and largely stable margins. We reiterate our Neutral rating on the stock with a target price of Rs 220 (based on 1.3 times FY26E ABV)..Click on the attachment to read the full report:.Ambuja Cement - Aggressive Game Plan: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bandhan Bank - On The Path To Recovery; To Diversify Loan Book Further: Motilal Oswal

FY26E return on equity to recover to 17%; reiterate Neutral with a target price of Rs 220

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