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Bandhan Bank Ltd. Stock Analysis

Large Cap
Evaluated by 1918 users | BSE: 541153 | NSE: BANDHANBNK |
Bank - Private

Bandhan Bank started in 2001 as a not-for-profit enterprise that stood for financial inclusion and women empowerment through sustainable livelihood creation. It turned into a non-banking financial company (NBFC) a few years later. In 2015, the Reserve Bank of...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bandhan Bank Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Net Interest Income (Rs. Cr.)09332,4043,0324,4956,324
Y-o-Y Gr. Rt.33-NA157.7%26.2%48.3%40.7%
Total Income81,7314,3205,5087,70612,435
Y-o-Y Gr. Rt.-21676.7%149.5%27.5%39.9%61.4%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
02.5110.1511.2816.3618.78
Y-o-Y Gr. Rt.-NA304.4%11.1%45%14.8%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
030.4540.678.6593.8994.37
Y-o-Y Gr. Rt.-NA33.3%93.7%19.4%0.5%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1 : Not Good
Net Profit/Total Funds (%)02.794.453.613.874.08
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%): Colour Rating Guide
  • < 0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1: Not Good
Net NPA to Net Advances (%)00.080.360.580.580.58
To view Capital Adequacy Ratio Colour Rating Guide click here
Capital Adequacy Ratio: Colour Rating Guide
  • > 12% : Very Good
  • 9%-12% : Somewhat Good
  • <9%: Not Good
Capital Adequacy Ratio - - - - - - - - - 0%
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Bandhan Bank Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Interest IncomeNANA38.1%40.7%
Total IncomeNA335.4%42.3%61.4%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
NANA22.8%14.8%
Book Value per Share
NANA32.5%0.5%
Share Price - - - -36.8%
Key Financial Ratios
RATIOS \ YEARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Interest Earned / Total Income091.3490.4887.1886.2187.54
Margins
To view Margins Colour Rating Guide click here
Margins: Colour Rating Guide
  • >2.75 : Very Good
  • 1.75-2.75 : Somewhat Good
  • <1.75 : Not Good
NIM (%)04.828.096.968.17
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15% : Very Good
  • 12%-15% : Somewhat Good
  • <12% : Not Good
Return on Equity (%)0.1114.3528.5819.4618.9622.91
Liquidity Ratio
To view Liquidity Ratio Colour Rating Guide click here
Liquidity Ratio: Colour Rating Guide
  • >35 : Very Good
  • 25-35 : Somewhat Good
  • <25 : Not Good
CASA (%) 021.5529.4334.3240.7536.84
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 40.00%
Institutions 38.07%
Non-Institutions 21.94%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Bandhan Bank Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Bandhan Bank Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

Data is not available for this company.

Data is not available for this company

Bandhan Bank started in 2001 as a not-for-profit enterprise that stood for financial inclusion and women empowerment through sustainable livelihood creation. It turned into a non-banking financial company (NBFC) a few years later. In 2015, the Reserve Bank of India (RBI) gave Bandhan the universal banking licence. On August 23, 2015, Bandhan Bank was born with a bouquet of products for customers in all segments. In all the avatars of Bandhan, the objective has

Bandhan Bank started in 2001 as a not-for-profit enterprise that stood for financial inclusion and women empowerment through sustainable livelihood creation. It turned into a non-banking financial company (NBFC) a few years later. In 2015, the Reserve Bank of India (RBI) gave Bandhan the universal banking licence. On August 23, 2015, Bandhan Bank was born with a bouquet of products for customers in all segments. In all the avatars of Bandhan, the objective has remained reaching out to the unbanked and the under-banked, and providing last-mile banking for all, big or small. The core purpose has graduated from financial inclusion to inclusive banking.

The Bank is driven by a constant desire to serve its customers better. It offers world-class banking products and services to urban, semi-urban and rural customers. The experienced management, diversified team, and a well-entrenched distribution network, all of which makes the Bank well poised to meet the aspirations of customers and all other stakeholders, are its key differentiators. The service that the Bank provides to its customers stands out, as it strives every day to nurture every relationship, listening closely to customers, and bringing solutions to them that truly cater to their needs.

Business area of the Bank:

Bandhan Bank is focussed on serving the unbanked and underbanked population of India. It offers world-class banking solutions and financial services in the form of asset and liability products and services. It offers regular banking services, microfinance, MSME, and affordable housing finance to urban, semi-urban and rural customers. It works on the ethos of bringing those outside the purview of India’s formal banking marketplace within the ecosystem.

Awards and Recognitions:

2016-17:

  • Bandhan Bank received the ‘Special Initiative Award’ for the year 2014-15 as part of FE INDIA’s Best Bank Awards.
  • Bandhan Bank received the Bihar Mitra Award for Banking and Finance on Bihar Divas in Mumbai.

2017-18:

  • Bandhan Bank bagged ‘The Hindu Business Line Changemakers Award’. It was selected as Changemaker – Financial Transformation (category).
  • Bandhan Bank has been declared the ‘Best Private Sector Bank – Government Scheme Participation (PMMY)’ for the Dun & Bradstreet Banking Awards 2017.

2018-19:

  • Bandhan Bank was declared as the winner in the ‘Noteworthy Lender to the MSE - Private Sector Bank’ category at the SIDBI ET MSE Awards 2018 held on January 2019.
  • Bandhan Bank was given the ‘Best Bank of the Year’ 2018 at Moneycontrol’s ‘The Wealth Creator Awards’ in November 2018.
  • Bandhan Bank received the award in ‘Best Performing Bank’ in terms of Aadhaar generation and update (using online client) at the Aadhaar Excellence Awards in October 2018.
  • Bandhan Bank won the ‘Entrepreneur with Social Impact’ Award at the first edition of the CNBC-AWAAZ CEO Awards 2018 presented by the Chhattisgarh Government in July 2018.

2019-20:

  • ‘Emerging Company of the Year’ at The Economic Times Awards 2019 for Corporate Excellence.
  • ‘Best Bank’ and the ‘Fastest Growing Bank’ in the small size bank category at Businessworld Magna Awards 2019.
  • ‘Fastest Growing Company’ and ‘Excellence in Business Performance’ at The Economic Times Bengal Corporate Awards 2020.
  • ‘Best Indian Banking and Financial Institution’ at Times Business Awards 2020.

Major Events and Milestones:

  • 2001: Bandhan started as a society that stood for financial inclusion and women empowerment through sustainable livelihood creation.
  • 2001: Started microfinance operations in rural Bengal.
  • 2006: Bandhan acquired an NBFC and established Bandhan Financial Services Private Limited, yet the core objective remained that of financial inclusion.
  • 2009: The microfinance portfolio was transferred from society to NBFC.
  • 2010: Bandhan became the largest microfinance institution (MFI) in the country.
  • 2015: Bandhan Bank started operations as a universal bank on August 23.
  • 2015: It became the first microfinance company in India to get a universal banking licence.
  • 2015: On the day of the launch, the Bank started with 2,523 banking outlets.
  • 2018: On the day of listing itself, Bandhan Bank emerged as the 8th most valued bank on the basis of market capitalisation.
  • 2019: Bandhan Bank acquired the stake of HDFC Limited in GRUH Finance, one of India’s foremost affordable housing finance companies.
  • 2020: The Bank set up its 1,000th bank branch and 4,000th banking outlet.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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