Bandhan Bank Limited

Financial Services — Banks - Regional · NSE

₹167.50−₹2.84 (−1.67%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Bandhan Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bandhan Bank Limited provides banking and financial services for personal and business customers in India. The company operates through Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business segments.

IndustryBanks - Regional

SectorFinancial Services

Employees74,500

Annual revenue₹13,564 Cr

How does it make money?

Turns over ₹13,564 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit. Each of its 74,500 employees supports ₹18.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹18.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What is the outlook?

24 analysts covering the stock expect revenue to grow about 15.5% and earnings to grow about 27.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.5%

Est. earnings growth+27.5%

Analysts24

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +16% while net margin moved -52% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+16%

Margin effect-52%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.0% — barely ahead of inflation
✗ Profit has declined at 17.7% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

57/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

20.0x

3Y Median

13.2x

40 monthly readings · mean 13.6x · range 8.3x–23.5x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 52% above its 3y median of 13.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 17% above the peer median of 17.0x.

vs. its own history

Expensive

13.2x median over 40 months · +52%

vs. sector peers

Fair

17.0x median of 4 peers · +17%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

0.58

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 11.2% to 4.8% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 44% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 52% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 5.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 11.2% to 4.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Return on equity stays above 8%✗ 4.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 4% a year✓ 5.0% CAGR
Latest reported year was 21.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 13.2x✗ 20.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹26,987 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

20.0x

Fair

Fairly valued against the generic band

P/B Ratio

1.05x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.39

Profitable

Profitable on a per-share basis

ROE

4.8%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.56x

Low

Conservative leverage

Revenue Growth (YoY)

21.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

34.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.90%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹614 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

8.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

23.8%

Good

Healthy core-business profitability

Net Margin

13.6%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.79

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

173.3 / 172.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11,722 Cr	₹12,486 Cr	₹14,457 Cr	₹13,564 Cr	+5.0%
PAT (Net Profit)	₹2,195 Cr	₹2,230 Cr	₹2,745 Cr	₹1,224 Cr	-17.7%
EPS	₹13.62	₹13.84	₹17.04	₹7.59	-17.7%
ROE	11.2%	10.3%	11.2%	4.8%	—
Total Debt	₹24,711 Cr	₹16,372 Cr	₹11,138 Cr	₹14,303 Cr	-16.7%
Free Cash Flow	-₹4,657 Cr	₹14,251 Cr	₹2,464 Cr	₹614 Cr	—

🟢 Revenue has grown at 5.0% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 17.7% a year over 3 years.

🔴 EPS has shrunk at 17.7% a year over 3 years.

🔴 ROE has fallen from 11.2% to 4.8% over 3 years (-6.4 pts).

🟢 Total Debt has shrunk at 16.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4,657 Cr to ₹614 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2.11 L Cr

Total Liabilities

₹1.86 L Cr

Cash & Equivalents

₹16,725 Cr

Operating Cash Flow

₹1,143 Cr

Capex

-₹529 Cr

Shareholding (proxy)

Institutional Holding

40.7%

Insider Holding

37.6%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹1.5

Ex-Dividend Date

17 Aug 2026

Analyst Consensus

Recommendations

10 Buy · 10 Hold · 4 Sell

Target Price (Mean)

₹199.46

+19.1% vs CMP

Target Range

₹146 – ₹240

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

6 mixed

Bandhan Bank stock jumps 7% on reports of Abu Dhabi's IHC exploring promoter stake acquisition

Moneycontrol.com, 13 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Bandhan Bank share price jumps 8% today after 4% fall in a month | What's fuelling surge in banking stock

Livemint, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bandhan Bank shares jump 9% amid stake acquisition buzz; here's what the bank said

Upstox, 13 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Bandhan Bank Clarifies Unawareness Of Reported IHC Stake Purchase

Sahi, 13 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Buzzing stock: Why is Bandhan Bank share price up 8% in trade today?

Business Standard, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bandhan Bank Share Price Jumps 8%: Stake Talks Explained

Univest, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Risk

MiddlingProfitability · Valuation

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 13.2x · see Key things to watch ↑