Bandhan Bank shares slide after CLSA downgrade and price target cut
Shares of Bandhan Bank Ltd. dropped 5% on Friday, after brokerage firm CLSA downgraded the stock and reduced its price target by 13.6% following a weak second-quarter performance, News.Az reports, citing foreign media.
CLSA lowered its rating from “buy” to “accumulate” and cut the target price from ₹220 to ₹190 per share — still 11.4% above Thursday’s closing price of ₹170.58. The brokerage cited weak net interest income (NII), subdued pre-provision operating profit (PPOP), and elevated credit costs.
According to CLSA, the bank’s microfinance (MFI) book continues to shrink, albeit at a slower rate. The lender’s net interest margin (NIM) fell 60 basis points due to yield cuts and repo-rate pass-throughs, though CLSA expects margins to recover by FY2027.
Separately, Nomura maintained a “neutral” stance with a target price of ₹170 per share, noting Bandhan Bank’s soft NIM, weak asset quality, and lower earnings outlook. The brokerage slashed FY26–28 earnings per share by 13–38% and said loan growth was driven largely by secured assets.
Of the 28 analysts covering Bandhan Bank, 14 recommend a “buy,” 10 suggest “hold,” and four rate it as a “sell.” As of 9:40 a.m., shares traded at ₹162 apiece, down 5% on the day but still up 1.2% year-to-date.
Its NIM has likely bottomed and will recover in the financial year 2027, CLSA said.
Meanwhile, brokerage firm Nomura has a "neutral" call on the stock with a target price of 170 per share.
It said the company reported a weak second quarter with soft NIM and asset quality.
It cut the lender's FY26-28 earnings per share by 13-38%
Its loan growth was driven by secured assets, Nomura said.
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