Bandhan Bank share price may fall to Rs 201 after Rs 218.73, know what technical and fundamental analysis says
Bandhan Bank has recently made headlines with significant updates regarding its share price and future prospects. As of October 13, 2024, the bank’s shares have shown a notable rise, reflecting investor optimism following key developments.
Main Points
- 1 Bandhan Bank Share Price Update
- 2 Recent Performance and Financial Growth
- 3 Bandhan Bank share price Important Levels and Targets
- 4 Key Insights on Bandhan Bank share price performance
- 5 Bandhan Bank Share Price Market Sentiment and Future Outlook
- 6 Full Details on Upcoming Developments
- 7 Upcoming Financial Releases:
- 8 Regulatory Changes:
- 9 Market Dynamics:
On October 11, 2024, Bandhan Bank’s share price surged by 12.02%, closing at ₹210.26 from a previous close of ₹187.70. This increase follows the Reserve Bank of India’s (RBI) approval of Partha Sengupta as the new Managing Director and CEO, effective no later than November 10, 2024. Sengupta’s experience with major banks like State Bank of India is expected to bring a fresh perspective to Bandhan Bank’s operations.
Recent Performance and Financial Growth
In the second quarter of the current financial year, Bandhan Bank reported a 24.6% increase in total business, reaching ₹2,73,163 crore compared to ₹2,19,712 crore in the same period last year. This growth reflects a robust demand for banking services in underbanked markets. The bank also noted a 15.64% year-on-year increase in advances, exceeding its five-year compound annual growth rate (CAGR) of 12.7%.
Market analysts have set crucial support and resistance levels for Bandhan Bank shares. Immediate support is observed at ₹24,700, while resistance is anticipated at ₹25,000. A decisive move above this level could potentially lead to further gains towards ₹25,400-25,500 in the near term.
- Market Capitalization: ₹32,300 crore
- Current Price: ₹210.26
- 52-Week High/Low: ₹263 / ₹169
- P/E Ratio: 12.6
- Return on Equity (ROE): 10.8%
- Dividend Yield: 0.75%
Despite these positive indicators, Bandhan Bank has faced challenges such as a declining net interest margin over the past three years. The bank’s gross non-performing assets (NPA) ratio has improved to 4.23%, down from higher levels previously reported.
Investor sentiment towards Bandhan Bank has been cautiously optimistic following the announcement of Sengupta’s appointment. Analysts from various financial institutions have varied perspectives on the bank’s future performance. For instance, Jefferies maintains a buy rating on Bandhan Bank despite some concerns regarding quarterly collection dips.
Moreover, foreign portfolio investors recently turned net sellers with sales amounting to ₹4,563 crore, while domestic institutional investors bought shares worth ₹3,509 crore. This mixed sentiment reflects broader market conditions influenced by geopolitical tensions and economic factors affecting investor behavior.
Full Details on Upcoming Developments
Upcoming Financial Releases:
- The bank is expected to release its next quarterly financial results soon.
- Analysts will closely monitor the impact of global economic conditions on local banking performance.
Regulatory Changes:
- The RBI’s approval of Sengupta is seen as a strategic move aimed at stabilizing leadership during turbulent market conditions.
Market Dynamics:
- With rising interest rates globally and local economic pressures, Bandhan Bank’s strategy will be crucial in maintaining its growth trajectory.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
