Bandhan Bank Ltd Stock Analysis

BSE: 541153 | NSE: BANDHANBNK | Bank - Private | Large Cap

BSE Share Price Jul 01, 18:01
264.80 1.30 (0.49%)

DeciZen - Make an Informed Decision on Bandhan Bank

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

FAQs

1. Is Bandhan Bank Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Bandhan Bank Ltd is a good quality company.

2. Is Bandhan Bank Ltd undervalued or overvalued?

The key valuation ratios of Bandhan Bank Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Bandhan Bank Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Bandhan Bank Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Bandhan Bank:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Net Interest Income (₹ Cr.)00009332,4043,0324,4956,3247,5638,714
YoY Gr. Rt. %-NANANANA157.7%26.2%48.3%40.7%19.6%-
Total Income00081,7314,3205,5087,70612,43514,63316,573
YoY Gr. Rt. %-NANANA21676.7%149.5%27.5%39.9%61.4%17.7%-
Adj EPS (₹ ) 00002.510.211.316.418.813.70.8
YoY Gr. Rt. %-NANANANA304.4%11.1%45%14.8%-27.1%-
BVPS (₹ )000030.540.678.793.994.4108.1107.9
YoY Gr. Rt. %-NANANANA33.3%93.7%19.4%0.5%14.5%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)00002.84.53.63.94.12.10.1
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%)00000.10.40.60.60.63.51.7
To view Capital Adequacy Ratio (%) Colour Rating Guide click here
Capital Adequacy Ratio (%)-----------

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest IncomeNA52%35.6%19.6%
Total IncomeNA53.3%38.5%17.7%
Adj EPSNA40.4%6.7%-27.1%
BVPSNA28.8%11.2%14.5%
Share Price - - -22.1% -17.7%

Key Financial Ratios

RATIOS \ YEARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Interest Earned / Total Income000091.3490.4887.1886.2187.5485.5983.7
Margins To view Margins Colour Rating Guide click here
NIM (%)00004.88.178.176.76.3
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)0000.114.428.619.51922.913.50.7
Liquidity Ratio To view Liquidity Ratio Colour Rating Guide click here
CASA (%)000021.629.434.340.836.843.4-

Recent Performance Summary

Total Income has increased 38.50 CAGR in last 3 years

Net Profit has increased 6.67 CAGR in last 3 years

Total income growth is good in last 4 quarters

Return on Equity has declined versus last 3 years average to 0.70%

Net NPA to Net Advances has increased in last 3 years

Latest Financials - Bandhan Bank Ltd.

Standalone Consolidated
TTM EPS (₹) 0.8 -
TTM Sales (₹ Cr.) 13,871 -
BVPS (₹.) 107.9 -
Reserves (₹ Cr.) 15,770 -
P/BV 2.45 -
PE 339.08 -
From the Market
52 Week Low / High (₹) 229.65 / 349.50
All Time Low / High (₹) 152.35 / 741.00
Market Cap (₹ Cr.) 42,654
Equity (₹ Cr.) 1,610.8
Face Value (₹) 10
Industry PE 21.2

Management X-Ray of Bandhan Bank :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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News

About Bandhan Bank Ltd

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.
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