Bandhan Bank shares jump most since April 2025 despite Q3 profit fall; buy, sell or hold?

Shares of Bandhan Bank rose as much as 6.34% to touch a day’s high of Rs 151.70 on the BSE in Friday’s trade.This move represents the lender’s biggest single-day rally since April 21, 2025, when the stock had surged nearly 6.5% during the session to Rs 168.70 before closing with gains of 5.73%.

At last check, Bandhan Bank stock was up 5.82% to Rs 150.95 against its previous close of Rs 142.65 apiece.

The sharp rally comes even as the private lender reported a steep 52% year-on-year (YoY) decline in net profit to Rs 205.59 crore for the third quarter of FY26. 

The bank’s operating profit grew 10% quarter-on-quarter (QoQ) to Rs 1,450 crore, coming in ahead of street expectations, driven by higher other income and a 10 basis point expansion in margins.

Brokerages on Bandhan Bank

Brokerage firm JM Financial upgraded Bandhan Bank stock to 'Add' from 'Reduce', revising its target price to Rs 160. The broking noted that while the PAT of Rs 210 crore missed their estimates due to elevated credit costs (~3.4%), the downside now looks limited given the benign valuation of 0.7x FY28 P/B.

"Assets quality is normalising gradually," JM Financial noted, highlighting that the bank sold Rs 6,870 crore worth of its stressed portfolio to an asset reconstruction company (ARC). As a result, the gross non-performing assets (GNPA) ratio cooled off significantly to 3.3% from nearly 5% previously, it said.

Axis Securities upgraded the stock to 'Buy' from 'Hold' with a similar target price of Rs 160. The brokerage pointed to ‘green shoots’ in the emerging entrepreneurs business (EEB) segment, observing that early-stage delinquency indicators are improving.

"With EEB slippages declining and the secured portfolio stress remaining contained, management expects a meaningful improvement in Q4 credit costs," Axis Securities said.
Financial Highlights

Nuvama maintained a ‘Reduce’ call on the stock with a target price of Rs 133, from Rs 155 earlier. While MOFSL has a 'Buy' rating with an unchanged target price of Rs 175.
 

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