Check Before You Invest : Bandhan Bank Ltd

Q: Which industry/sub-sector does Bandhan Bank Ltd belong to?

Bandhan Bank Ltd belongs to the BFSI sector, operating specifically within the Bank - Private segment.

Q: Is Bandhan Bank Ltd a good quality company?

Bandhan Bank Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Bandhan Bank Ltd undervalued or overvalued?

Bandhan Bank Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 25.17, Historic Median: 13.01. Price to Book, Current: 1.22, Historic Median: 1.77. Price to Sales, Current: 1.42, Historic Median: 2.16. EV to EBITDA, Current: 5.87, Historic Median: 7.11

Q: Is Bandhan Bank Ltd a good buy now?

Bandhan Bank Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Bandhan Bank Ltd?

Bandhan Bank Ltd Total Income growth is 18.41% for FY-2025, which is above its 5-year CAGR of 14.91%, indicating faster growth.

Q: Return on Assets of Bandhan Bank Ltd?

Bandhan Bank Ltd Return on Asset is 1.5%, which is in line with its 5-year historical median of 1.5%, indicating stable earnings on assets. Efficiency & Key Metrics. NIM (%), Current: 6.3, Historic Median: 6.37. PPOP (%), Current: 11.3, Historic Median: 11.3. RoA (%), Current: 1.5, Historic Median: 1.5

Q: Return on Equity (ROE) of Bandhan Bank Ltd?

Bandhan Bank Ltd Return on Equity is 12% for FY-2025, which is in line with its 5-year historical median of 11.9%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Bandhan Bank Ltd?

Bandhan Bank Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 11.3% for FY-2025, which is in line with its 5-year median(11.3%), indicating stable margins.

Q: Net Interest Margin of Bandhan Bank Ltd?

Bandhan Bank Ltd Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 6.3% for FY-2025, which is in line with its 5-year median( 6.37%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

Bandhan Bank Ltd return on invested capital (ROIC) is 27.31% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Bandhan Bank Ltd

BSE: 541153 NSE: BANDHANBNK ISIN: INE545U01014

| Sector: BFSI | Industry: Bank - Private

Snapshot

Q.1 Which industry/sub-sector does Bandhan Bank Ltd belong to?

Bandhan Bank Ltd belongs to the BFSI sector, operating specifically within the Bank - Private segment.

Q.2 Is Bandhan Bank Ltd a good quality company?

Bandhan Bank Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Bandhan Bank Ltd undervalued or overvalued?

Bandhan Bank Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	25.17	13.01
Price to Book	1.22	1.77
Price to Sales	1.42	2.16
EV to EBITDA	5.87	7.11

Q.4 Is Bandhan Bank Ltd a good buy now?

Bandhan Bank Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth and Cost-to-Income ratio.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Bandhan Bank Ltd?

Bandhan Bank Ltd Total Income growth is 18.41% for FY-2025, which is above its 5-year CAGR of 14.91%, indicating faster growth.

Q.2 Return on Assets of Bandhan Bank Ltd?

Bandhan Bank Ltd Return on Asset is 1.5%, which is in line with its 5-year historical median of 1.5%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NIM (%)	6.3	6.37
PPOP (%)	11.3	11.3
RoA (%)	1.5	1.5

Q.3 Return on Equity (ROE) of Bandhan Bank Ltd?

Bandhan Bank Ltd Return on Equity is 12% for FY-2025, which is in line with its 5-year historical median of 11.9%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Bandhan Bank Ltd?

Bandhan Bank Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 11.3% for FY-2025, which is in line with its 5-year median(11.3%), indicating stable margins.

Q.5 Net Interest Margin of Bandhan Bank Ltd?

Bandhan Bank Ltd Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 6.3% for FY-2025, which is in line with its 5-year median( 6.37%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

Bandhan Bank Ltd return on invested capital (ROIC) is 27.31% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Bandhan Bank Ltd?

Bandhan Bank Ltd Total Asset growth is 7.67% for FY-2025, which is below its 5-year CAGR of 15.86%, indicating slower growth.

Q.8 Cost to Income ratio of Bandhan Bank Ltd?

Bandhan Bank Ltd Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 48.9% for FY-2025, is higher its historical 5-year median of 39.5%, indicating improved cost management.

C: How strong is the bank’s capital position and asset quality?

Q.9 Capital Adequacy ratio of Bandhan Bank Ltd?

Bandhan Bank Ltd Capital Adequacy ratio (CAR) is 18.7% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.10 Asset Quality of Bandhan Bank Ltd?

Bandhan Bank Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 4.71% for FY-2025, which is in line with its 5-year median 4.87%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 1.28% which is in line with its 5-year median( 1.28%), indicating stable asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of Bandhan Bank Ltd?

Q.1 Promoter shareholding and pledge status of Bandhan Bank Ltd?

Promoters hold 38.98% of the Bandhan Bank Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bandhan Bank Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Bandhan Bank Ltd vs Industry Peers?

Bandhan Bank Ltd AUM CAGR is 15.86%, compared to the 5-year industry median CAGR of 13.65%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of Bandhan Bank Ltd vs industry peers

Bandhan Bank Ltd profit metrics are in line with the industry median level of 7.55%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM (%)	6.3	3.73
PPOP (%)	11.3	17.81
RoA (%)	1.5	1.1

Q.3 Operating efficiency of Bandhan Bank Ltd vs industry peers?

Bandhan Bank Ltd Cost to Income (35.65) is below the industry median of (61.3); while the current ROE (11.9) are in line with than the 5-year average Industry ROE (12.2). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM (%)	6.3	3.73
PPOP (%)	11.3	17.81
RoA (%)	1.5	1.1
Cost to Income (%)	48.9	61.3
ROE (%)	12	12.2

Valuation & price assessment

Q.1 Stock return of Bandhan Bank Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of -8.35% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-8.4%	-7.2%	17%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.17	13.01	13.38
Price to Book	1.22	1.77	1.38
Price to Sales	1.42	2.16	1.77
EV to EBITDA	5.87	7.11	7.70

Q.3 Valuation ratios of Bandhan Bank Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.22 is lower than its historical median of 1.77, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : Bandhan Bank Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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