Bandhan Bank, one of India's newest universal banks, is leading the financial industry with an emphasis on inclusive banking. The bank was founded in 2014 and has expanded rapidly to become a significant force in the Indian banking sector, particularly in underbanked and under-accessed communities.
Improvements in the microfinance industry, upgrades from brokerage firms, and strategic changes in Bandhan Bank's loan portfolio have contributed to the bank's recent significant share price fluctuations. In addition to examining the variables that impact Bandhan Bank's performance and future forecasts, this article attempts to summarize the most recent developments and trends relating to the company's share price.
Read more: Tata Investment Share Price
Current Share Price and Recent Trends
The Bandhan Bank share price has been on the rise till the end of February 2025; it is currently trading at around ₹142.43, a recent gain from its previous close price: strong investor interest and increased market expectations for the Indian microfinance sector.
The projected to revive progressively over the next quarters partly responsible for this rise. The recent upgrade by CLSA, which raised its rating to 'High Conviction Outperform' with a target price of ₹220, indicating a potential upside of around 61%, has also impacted the bank's share price.
Factors Influencing Share Price
Several key factors influence the trend of Bandhan Bank share price:
Microfinance Sector Recovery
It is being estimated that the Indian microfinance industry will stabilise from its current precarious state in 1-2 quarters and resume normal operations by Q2FY26. Bandhan Bank is expected to benefit greatly from this surge.
Transition towards secured loans: Bandhan Bank intends to increase the proportion of secured loans it offers, which can mitigate business cycle and better comply with regulatory requirements. Although this strategic shift may have a slight impact on return on assets, it is still considered a good change.
Financial Performance
While net profit saw a decline in Q3 FY24, Bandhan Bank's loan book grew well, with loans growing 15.64% year on year.
Investment Outlook
Due to its solid foundation and well-thought-out expansion plans, Bandhan Bank offers investors a bright future. Before making any investment decision, it is important to take a careful look at the state of the economy, market dynamics, and regulatory developments. To ensure long-term growth, the bank will have to be able to successfully negotiate a competitive banking environment while maintaining its emphasis on inclusive banking.
Keep following 5 Dariya News for more news and articles.