has given Ecommended accumulate recommendation for Bandhan Bank with a target price of Rs. 385 in its research report issued on May 17, 2022

KR Choksey’s research report on Bandhan Bank

Net Interest income reported at INR 25,398Mn (+44.6% yoy / +19.5% qoq) and NIM improved at 8.7% in Q4FY22 as against 6.8% in Q4FY21. Non-Interest Income stood at INR 9,644Mn (+22.5% yoy, +35.4% qoq). NII for FY22 stood at INR 87,140Mn (+15.2% YoY). Net banking income stood at INR 35,042Mn (+37.7% yoy / +23.5% qoq) and Pre-provision profit (PPOP) reported at INR 25,214Mn (+45.8% yoy / +29.3% qoq). For FY22, net banking income reported at INR 1,15,368Mn (20.4% YoY) and Pre-provision profit reported at INR 80,134Mn (18.4% YoY). Net profit reported at INR 19,023Mn as against profit of INR 1,030Mn in Q4FY21. Net profit for FY22 stood at INR 1,258Mn (-94.3% YoY). Return on Assets (RoA) for Q4FY22 stood at 6.0%, which is higher by 560 bps YoY. For FY22, ROA was at 0.1%, declined from 2.1% in FY21. Return on Equity (RoE) for FY22 stood at 0.8% as against 13.2% in FY21.


Currently, the stock is trading at INR 339 at TTM P/BV of 3.1x of FY22 book value of INR 108/share. We apply 2.2x P/ABV multiple to FY24E ABVPS of INR 174.7 to revise the target price upwards at INR 385/share (Previous target: INR 329/share). We maintain our accumulate rating on the stock with an upside of 13.4% over the CMP.

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