Shares of Bandhan Bank rose 1.5% on October 29 after the lender reported a more than five-fold year-on-year jump in net profit for the September quarter, helped by lower provisions and improved asset quality.
The stock was trading at Rs 157.66 on the NSE, up Rs 2.30, as of 10:09 am.
Bandhan Bank reported a net profit of Rs 622 crore for the second quarter, compared with Rs 112 crore in the year-ago period. Provisions declined 38% year-on-year, supporting the improvement in profitability.
Nomura maintained its 'Neutral' rating on Bandhan Bank but cut its target price to Rs 175 from Rs 190, valuing the lender at 0.9 times September 2028 estimated book value per share, against 1 time March 2028 estimated book value per share earlier.
The brokerage said the bank reported second-quarter profit after tax of Rs 620 crore, up 24% quarter-on-quarter and 12% above its estimate. Core pre-provision operating profit rose 14% quarter-on-quarter to Rs 1,520 crore, beating its estimate by 9%, driven by net interest income, fee income and lower operating expenses.