Bandhan Bank Ltd experienced a nearly 5% decline in Thursday’s trading session, marking the end of a five-day winning streak, as investors awaited the release of its March quarter results on Friday. The stock fell by 4.74% to reach a low of Rs. 180.80 on the BSE.
Analysts anticipate a marginal year-on-year (YoY) decrease in the bank’s Q4 profit. Axis Securities projects a 2.8% YoY drop in net profit to Rs. 785 crore, with other income expected to decline by 10.8% YoY. Meanwhile, NII is forecasted to rise by 9.3% to Rs. 2,701 crore, and pre-provision operating profit is expected to decrease by 1.6% YoY to Rs. 1,766 crore. Provisions are anticipated to increase by 6% sequentially but decrease by 1.3% YoY to Rs. 725 crore.
Nuvama expects a 1% YoY decline in profit to Rs. 800 crore, with NII projected to increase by 7% YoY to Rs. 2,640 crore. Net interest margin (NIM) is estimated at 7.15%, slightly lower than the previous quarter and the corresponding quarter of the previous year.
Despite the anticipated decline in profit, analysts remain optimistic about Bandhan Bank’s performance. Motilal Oswal Securities highlights recent additions to the Key Management Personnel (KMP) and the bank’s compliance with regulatory requirements regarding Executive Directors (EDs) as factors bolstering confidence in its operations.
In its Q4 update, Bandhan Bank reported a 17.8% growth in gross advances, with its deposit base reaching Rs. 1.35 lakh crore, up 25.1% YoY. CASA deposits exhibited faster growth at 18.1% YoY.