Bandhan Bank Hits Fresh 52 Week High as Strong Results Continue To Fuel Turnaround Rally

Mumbai, May 4: Shares of Bandhan Bank surged sharply in trade, hitting a fresh 52 week high and extending their recent rally, as strong quarterly earnings reinforced the narrative of a turnaround at the lender.

The stock has been one of the standout gainers in the banking pack, climbing to around ₹213 its highest level in a year after delivering a robust March quarter performance. The rally has been underpinned by a 68% year on year jump in net profit to about ₹530 crore, driven largely by a sharp fall in provisions and improving asset quality.

At the time of writing, the stock was up 4.8 per cent at Rs 209.

Fundamental Shift

At the core of the surge is a clear shift in fundamentals. Bandhan Bank, which had struggled with stress in its microfinance portfolio over the past few quarters, is now showing visible signs of repair. Gross NPAs have eased to around 3.3%, while lower slippages and better recoveries have helped stabilise the loan book.

The stock is up as the lender is showing signs of repair. Above is the stock movement for Monday. Source: NSE

Equally important, provisions have dropped sharply by over 40% sequentially and annually signalling that the worst of the asset quality stress may be behind the bank. This reduction in credit costs has directly boosted profitability, turning what was once a drag into a key earnings lever.

Swift, Decisive

The market reaction has been swift and decisive. The stock has rallied over the past month, with investors re rating the bank on expectations that the clean up cycle is largely complete and earnings recovery is now underway. The move to a new 52 week high reflects renewed confidence in the bank’s ability to transition from repair to growth.

Brokerages have also turned more constructive, highlighting improving early stress indicators, moderation in slippages and a gradual normalisation in the microfinance segment as key positives. The stock’s sharp upmove suggests that investors are beginning to price in a more stable and predictable earnings trajectory.

Topline Muted

That said, not everything is firing at full throttle yet. Topline growth remains relatively muted, with net interest income expanding only modestly, indicating that while the balance sheet is stabilising, the next phase of growth is still evolving.

This leaves the stock at an interesting inflection point. The heavy lifting cleaning up the balance sheet appears largely done. The next leg of the rally will likely depend on whether Bandhan Bank can translate improved asset quality into sustained loan growth and stronger return ratios.

For now, the market is choosing to focus on what’s improved rather than what’s still missing. After months of being weighed down by asset quality concerns, Bandhan Bank is back in favour its stock hitting fresh highs as investors bet that the turnaround story is no longer just a promise, but increasingly a reality.

Source:

• https://www.nseindia.com/getquote/equity/BANDHANBNK/BandhanBankLimited