Bandhan Bank shares gain after CLSA maintains bullish outlook on stock

Shares of private lender Bandhan Bank Ltd. were trading with gains of 4% on Wednesday, June 18, after global brokerage firm CLSA maintained its bullish outlook on the stock.

CLSA has an ‘Outperform’ rating on Bandhan Bank with high conviction. The brokerage said that strong price action in the stock following the recent RBI policy announcement.

Bandhan Bank's gross slippages ratio currently stands at 10%, which is approximately half that of peers like IDFC First Bank and RBL Bank.

According to CLSA, the bank may see only a 2% increase in additional stress, provided collection efficiency normalises by the end of June.

The Kolkata-based lender reported a 3.6% year-on-year decline in net interest income (NII) to ₹2,756 crore in Q4FY25, down from ₹2,860 crore a year ago. Net revenue stood at ₹3,456 crore, marginally lower than ₹3,560 crore in the same period last year.

Provisions dropped to ₹1,260 crore from ₹1,376 crore in the previous quarter. Operating profit fell 14.5% YoY to ₹1,571 crore.

Net interest margin (NIM) for the quarter was 6.7%.

Gross and net non-performing assets were largely unchanged compared to the preceding three months, at 4.7% and 1.3%, respectively. Low-cost deposits, reflected by the current account and savings account (CASA) ratio, fell sharply to 31.4% at the end of March, compared to 37.09% a year earlier.

The management said it expects the cost of credit to remain high at least until September 2025.

Bandhan Bank shares are currently trading 3.06% higher at ₹180.30. The banking stock has risen 14% so far in 2025.

Note To Readers

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.