As an investor, it is important to know which critical figures influence a stock s growth before making an ownership investment in it. Bandhan Bank: One of the well known private banking sector companies has been a favorite brag about stock for many traders in the market.
In this article, I’m going to take a look at the key financial and valuation metrics that drive Bandhan Bank’s price, and provide a close look at whether it is potentially mispriced.
Bandhan Bank Introduction
Bandhan Bank began as a microfinance company in 2006 and became a commercial bank in 2015 after the Reserve Bank of India (RBI) issued a license. Since then, it has grown in scale across India with a focus on retail banking, microfinance and SME lending.
Although the bank has been on a strong footing, it has also had to grapple with issues such as asset quality woes and volatile profitability.
Bandhan Bank share price You can view the entire list of company locations such as Registered Office, Branch Office, Head Office, Corporate Office, Regional Offices, Overseas Office, Factory, Plants, and Training Centers etc. The following are some of the key metrics investors should be looking at.
1. Current Share Price And Market Cap
On June 9, 2025, Bandhan Bank shares closed at ₹186.15, up 7.23%, on the BSE. The scrip has been quite volatile in last one year, as it has swung between ₹128.15 and ₹222.30 in last one year.
The bank by market cap is a mid-sized player in the private banking industry with ₹29,994 crores. It’s an important measure for two reasons: it shows the overall value of a company and how much investors value it.
2. Value Ratios: P/E, P/B, Dividend Yield
Price-to-Earnings(P/E)Ratio
Bandhan Bank has a trailing P/E of 10.9, which is quite low compared to some of its peers including HDFC Bank (21.41) and ICICI Bank (20.06). A low P/E can be a sign of undervaluation but might also indicate that investors have doubts about future growth prospects.
Price-to-Book (P/B) Ratio
Its price/book ratio is 1.23, meaning the stock trades at slightly above its book value. Bandhan Bank’s P/B ranges between 0.96 to 3.13 historically, and the current valuation is towards the lower end. A P/B ratio under 1.5 is often seen as reasonable for banks.
Dividend Yield
The bank pays a 0.81% yield, which is smallish compared to stock banking peers. Not a high yield stock, Bandhan Bank made a consistent dividend payout, making it ideal for income investors.
3. Return Ratios: ROE, ROA, and NIM
Return on Equity (ROE)
As for its return on equity, Bandhan Bank’s ROE at 11.15% for FY25 is reasonable, but not as high as some competitors. Return on equity (ROE) indicates efficient use of shareholders’ funds and there have been variations in Bandhan’s ROE in recent years (owing to provisions and asset quality).
Return on Assets (ROA)
The ROA is 1.43 percent and is a measure of profitability of the bank relative to its total assets (how well it uses the bank’s assets to make money). While lower than the top performing companies in the sector, it demonstrates steady progress as compared to previous years.
Net Interest Margin (NIM)
NIM is a key measure for banks that represents the difference between the money they make on lending and what they pay on saving. Bandhan Bank’s NIM of 6.00 per cent in healthy in comparison to the larger private sector banks like HDFC Bank (3.47 per cent) and ICICI Bank (3.68 per cent). This perhaps reflects strong ‘core’ profitability in the lending business.
4. Asset Quality: Gross NPA vs Net NPA
For any bank, the heartache is its non-performing assets (NPAs). Bandhan Bank has a Gross NPA ratio of 4.71% and its Net NPA ratio is 1.28% for March 2025.
Though the numbers come in higher than at some private banks, they represent progress over previous years. NPA resolution trends should be monitored by the investors and further decline in NPAs may lead to profitability improvement.”
5. Growth Stats: Advance, Deposit and Net Income Growth
Growth in the Loan Book (Advances)
For FY25, Bandhan Bank’s advances increased by 8.96 per cent YoY to ₹1,31,987 crore. This rate of growth is lower than historical levels but remains robust in the face of economic headwinds.
Deposit Growth
Deposits improved by 11.84% YoY to ₹1,51,212 crore underlining robust customer confidence. A stronger deposit base underpins more sustainable loan growth.
Earnings Per Share (EPS) Growth
The bank’s EPS rose to ₹17.04 in FY25 from ₹13.84 in FY24. At 23%, this growth indicates a recovery of profitability, but long-term investors ultimately need consistency.
6. Capital Adequacy Ratio (CAR)
Bandhan Bank has the capital adequacy ratio of a startling 18.71 per cent as against 11.5 per cent norm. This robust capital has allowed the bank to absorb potential losses and keep lending even in economic downturns.
7. Investor Sentiment and Analysts Recommendations
There is quite a bit of market sentiment baked into stock performance. As per today, Friday 18th October, Bandhan Bank share price is 501.15 based on a share price of Bandhan Bank, of 0.1, and Bandhan Bank share price is 0.00 give this company an overall yield of 0.00%.
- 8 analysts say “Strong Buy”
- 6 suggest “Buy”
- 8 advise “Hold”
- 2 recommend “Sell”
The market view is cautiously optimistic, with many analysts predicting a better asset quality and margin expansion in the next few quarters.
8. Technical Analysis and Price Trends
As far as the technical psychology is concerned, Bandhan Bank’s stock has a high movement recently (June 9, 2025) with 7.32% and strong momentum. On the upside, key resistance levels are at ₹187-₹190 and the supports are placed at ₹170-₹175.
MACD indicator had recently witnessed a bullish crossover, indicating possible upside. But there are larger market conditions and macroeconomic factors investors should keep in mind as well.
Conclusion: What Should You Do in Bandhan Bank?
Bandhan Bank offers an interesting play for investors. On the other hand, the bank has good fundamental – a decent NIM profile, improving asset quality and a robust capital base. On the flip side, its ROE and profitability ratios are not as good as those of some peers, while NPAs are a worry.
What Investors Need to Know:
- Valuation is appealing with a P/E of 10.9 and P/B of 1.23.
- Profitability is improving, but there is still room to grow in ROE.
- Asset quality is consolidating but NPAs remain elevated relative to industry leaders.
- Deposits and advances growth indicates long-term prospects.
If you’re bullish on Bandhan Bank’s ability to maintain its NIM, lower NPAs, and benefit from India’s expanding banking sector, it could be a valuable addition to your portfolio. Still, investors with a lower risk tolerance may want to see more stable earnings growth.
“Ultimately, thorough due diligence, and monitoring of quarterly reports is likely required to even approach making an informed decision. Monitor RBI policies, macroeconomic factors and the bank’s ability to be in line to achieve its growth trajectory.
Do you think Bandhan Bank is good to add to the portfolio? Let me know your thoughts!
Disclosure: This article is for information purposes only and is not intended as financial advice. Never do your own research or consult a financial professional.