Incorporated in 2014, Bandhan Bank has established itself as a significant player in India’s banking sector. Let’s Predict Bandhan Bank share price target 2025 in this article.
With a focus on serving underbanked and underpenetrated markets, the bank offers a wide array of banking products and services.
Bandhan Bank Share Price Prediction for 2025
Based on historical data, financial performance, and future strategies, we can project the monthly Bandhan bank share price target 2025.
The average annual decline over the past year is about 5.52%, but translating to an average monthly growth is approximately 1.07%.
Projected Monthly Targets:
- January 2025: ₹192.78 * (1 – 0.91%) ≈ ₹191.72
- February 2025: ₹191.72 * (1 – 0.91%) ≈ ₹190.66
- March 2025: ₹190.66 * (1 – 0.91%) ≈ ₹189.59
- April 2025: ₹189.59 * (1 – 0.91%) ≈ ₹188.52
- May 2025: ₹188.52 * (1 – 0.91%) ≈ ₹187.45
- June 2025: ₹187.45 * (1 – 0.91%) ≈ ₹186.38
- July 2025: ₹186.38 * (1 – 0.91%) ≈ ₹185.31
- August 2025: ₹185.31 * (1 – 0.91%) ≈ ₹184.24
- September 2025: ₹184.24 * (1 – 0.91%) ≈ ₹183.16
- October 2025: ₹183.16 * (1 – 0.91%) ≈ ₹182.08
- November 2025: ₹182.08 * (1 – 0.91%) ≈ ₹180.99
- December 2025: ₹180.99 * (1 – 0.91%) ≈ ₹179.90
As we look ahead to 2025, it is essential to analyze the potential share price trajectory of Bandhan Bank based on its historical performance and prospects.
Company Overview
History
Bandhan Bank originated as Bandhan Financial Services Pvt. Ltd (BFSL) in 2006. It was the largest NBFC-MFI in India until 2014 when it received a banking license from the Reserve Bank of India (RBI).
The bank began operations in 2015, transferring BFSL’s entire microfinance portfolio to its books.
Group Companies
Bandhan Financial Services Ltd (BFSL) ceased its operations and registered as an NBFC-CIC-ND-SI with the RBI in September 2017. Currently, BFSL focuses on investments. Bandhan Financial Holdings Limited (BFHL), a wholly-owned subsidiary of BFSL, oversees several entities:
- Bandhan Bank Ltd.
- Bandhan Mutual Fund
- Bandhan Financial Services Ltd.
- Bandhan Life Insurance
Financial Performance
Revenue Split (FY24 vs. FY23)
- Treasury: ~10% in FY24 vs. ~12% in FY23
- Retail Banking: ~81% in FY24 vs. ~82% in FY23
- Corporate Banking: ~7% in FY24 vs. ~5% in FY23
- Other Banking Operations: ~1% in FY24 vs. ~2% in FY23
Key Ratios (FY24)
- Gross NPA: 3.8% vs. 4.9% (FY23)
- Net NPA: 1.1% vs. 1.2% (FY23)
- Gross Loan Portfolio: ₹1,25,000 Cr vs. ₹1,09,000 Cr (FY23)
- Provision Coverage Ratio (PCR): 71.8% vs. 70% (FY23)
- CASA Ratio: 37.1% vs. 39.3% (FY23)
- Net Interest Margin (NIM): 7.3% vs. 7.2% (FY23)
- Capital Adequacy Ratio (CRAR): 18.3% vs. 19.8% (FY23)
- Cost of Funds: 6.6% vs. 5.6% (FY23)
Loan Advances and Liabilities (FY24)
Segment Mix
- Emerging Entrepreneurs Business (EEB): ~33%
- EEB Individual: ~17%
- Housing: 24%
- Retail: ~5%
- Commercial Banking: ~22%
Geographical Mix
- West Bengal: 24%
- Maharashtra: 12%
- Bihar: 9%
- Gujarat: 8%
- Madhya Pradesh: 7%
- Others: 40%
- Distribution: 37% in Eastern region, 20% in Western, 17% in Central, 13% in Southern, 8% in Northern, 5% in North Eastern
- Urban: 33%, Semi-urban: 21%, Rural: 17%, Metro: 29%
Liabilities Profile
- Current Account: ~7%
- Saving Account: ~30%
- Term Deposits (Retail): ~32%
- Term Deposits (Others): ~31%
Geographical Mix (Liabilities)
- West Bengal: 40%
- Maharashtra: 11%
- Uttar Pradesh: 6%
- Odisha: 4%
- NCT of Delhi: 4%
- Others: 35%
- Distribution: 50% in Eastern region, 14% in Western, 13% in Northern, 11% in Central, 8% in Southern, 4% in North Eastern
- Urban: 39%, Semi-urban: 13%, Rural: 10%, Metro: 38%
Network Expansion
In FY24, Bandhan Bank added 298 new banking outlets, bringing its total to 1,700 branches and 4,597 banking units. The bank operates in 615 districts across 35 states and union territories.
The regional distribution of banking outlets is:
- Eastern: 45%
- Central: 16%
- Southern: 11%
- Western: 11%
- North Eastern: 10%
- Northern: 7%
- Urban: 18%, Semi-urban: 37%, Rural: 33%, Metro: 12%
Future Prospects and Focus for FY25
Bandhan Bank aims to enhance its risk management framework and leverage data-driven analytical sourcing in FY25.
The bank’s focus on expanding its rural and underbanked population reach will continue to drive growth.
CGFMU Scheme
The Credit Guarantee Fund for Micro Units (CGFMU) scheme, launched by the Indian government, provides collateral-free business loans to small and micro units.
In December 2022, Bandhan Bank received ₹917 Cr as reimbursement under this scheme. However, subsequent recoveries amounting to ₹1,700 Cr have been delayed due to procedural formalities.
Technical Write-off
In Q4 FY24, Bandhan Bank conducted a technical write-off amounting to ₹3,852 Cr, primarily in its micro-banking portfolio. Provisions made during this period totaled ₹1,774 Cr.
Key Management Personnel
- Mr. Rajinder Kumar Babbar: Appointed as Executive Director & CBO in March 2024
- Mr. Rajeev Mantri: Appointed as CFO in December 2024
- Mr. Chandra Shekhar Ghosh: Founder, MD & CEO, announced his retirement effective July 2024. The search for a new CEO is ongoing.
Quarterly Results Overview
Revenue and Profit Trends (Figures in ₹ Crores)
| Quarter | Revenue | Interest | Expenses | Financing Profit | Financing Margin % | Other Income | Profit Before Tax | Net Profit |
|---|---|---|---|---|---|---|---|---|
| Mar 2021 | 3,001 | 1,244 | 2,409 | -652 | -22% | 787 | 135 | 103 |
| Mar 2022 | 3,872 | 1,332 | 988 | 1,552 | 40% | 964 | 2,517 | 1,902 |
| Mar 2023 | 4,268 | 1,796 | 2,040 | 432 | 10% | 629 | 1,061 | 808 |
| Mar 2024 | 5,189 | 2,323 | 3,496 | -630 | -12% | 694 | 64 | 55 |
Profit & Loss Statement (Figures in ₹ Crores)
| Year | Revenue | Interest | Expenses | Financing Profit | Financing Margin % | Other Income | Profit Before Tax | Net Profit | EPS (₹) |
|---|---|---|---|---|---|---|---|---|---|
| Mar 2015 | 0 | 0 | 6 | -6 | – | 8 | 2 | 1 | 0.01 |
| Mar 2020 | 10,885 | 4,562 | 3,739 | 2,584 | 24% | 1,549 | 4,053 | 3,024 | 18.78 |
| Mar 2022 | 13,872 | 5,157 | 11,298 | -2,584 | -19% | 2,822 | 129 | 126 | 0.78 |
| Mar 2024 | 18,870 | 8,544 | 9,547 | 778 | 4% | 2,165 | 2,943 | 2,230 | 13.84 |
Conclusion
Bandhan Bank has shown resilience and growth potential despite challenges in recent years.
With a strong focus on expanding its reach and enhancing its risk management framework, the bank is well-positioned for growth in 2025.
Investors can expect steady appreciation in the Bandhan bank share price target 2025, making it a promising investment for the future.
By understanding the bank’s financial health, strategic initiatives, and market conditions, stakeholders can make informed decisions and capitalize on the growth opportunities presented by Bandhan Bank.