Posted on February 27, 2025, by Niftynews
Bandhan Bank share price saw a significant rise, climbing by 7% to reach ₹144.1. This positive movement comes amid a broader gain in the BSE BANKEX index, which rose by 0.3%, currently standing at 55,601.8 points. The Bandhan Bank share performance today contrasts with its longer-term trend, as Bandhan Bank has been experiencing a decline over the past year.
BSE BANKEX Index Performance
The BSE BANKEX index, which tracks the performance of major banking stocks in India, has also shown a modest rise of 0.3%. Among the top performers in this index today are AU Small Finance Bank (up 3.8%) and IDFC First Bank (up 2.0%). However, Kotak Bank has been among the top losers in the index, declining by 0.3%.
Despite the daily fluctuations, the BSE BANKEX index has posted a solid gain of 5.1% over the past 12 months, climbing from 52,913.8 points to 55,601.8 points. The index continues to reflect the overall growth within the Indian banking sector.
Bandhan Bank’s Yearly Performance
Over the past year, Bandhan Bank share price has struggled, showing a decrease from ₹202.6 to ₹144.1, which represents a 28.9% drop. This decline highlights the challenges the bank has faced despite its recent performance improvement. On the other hand, the BSE BANKEX index has outperformed Bandhan Bank share during this period, registering a gain of 5.1%.
Looking at the top gainers in the BSE BANKEX index over the past year, HDFC Bank (up 19.3%), Federal Bank (up 19.1%), and ICICI Bank (up 16.1%) have been standout performers, showcasing the strength of these stocks compared to Bandhan Bank share.
Bandhan Bank Financial Update
Bandhan Bank recently reported a decline in its net profit for Q3 FY 2025. The bank’s net profit fell by 41.8% YoY to ₹4,265 million for the quarter ended December 2024, compared to ₹7,327 million a year ago. However, the bank’s net sales rose by 17.4% to ₹54,787 million during the same period, compared to ₹46,654 million in Q3 FY 2024. This indicates that while profitability has been impacted, the bank has still managed to achieve revenue growth.
For the full fiscal year 2024, Bandhan Bank reported a 1.6% increase in net profit to ₹22,296 million, up from ₹21,946 million in FY 2023. The bank’s revenue for FY 2024 also saw an 18.6% growth, reaching ₹188,696 million. These figures reflect Bandhan Bank’s ability to generate consistent revenue, despite facing headwinds in profitability.
Price-to-Earnings (P/E) Ratio of Bandhan Bank
The current P/E ratio of Bandhan Bank, based on rolling 12-month earnings, stands at 9.4. This relatively low P/E ratio could indicate that the Bandhan Bank share is undervalued compared to its earnings potential, making it an attractive proposition for value investors.
What About the Benchmark Indices?
The BSE Sensex, India’s key stock index, is currently at 74,641.3, showing a modest rise of 0.1% today. Among the top gainers in the Sensex are Bajaj Finance (up 2.0%) and Bajaj Finserv (up 1.7%). The most traded stocks in the BSE Sensex are Zomato and Tata Motors.
In comparison, the NSE Nifty is trading at 22,555.8, with Shriram Transport and JSW Steel being among the top gainers in the Nifty today.
Conclusion: Bandhan Bank Share Outlook
Despite the 7% gain in Bandhan Bank share price today, the bank’s stock has faced significant challenges over the past year. The recent financial results highlight a decline in profit, though revenue growth remains strong. The BSE BANKEX index has outperformed Bandhan Bank share during the same period, reflecting broader market trends and sector growth.
Investors will be keenly watching Bandhan Bank’s ability to navigate profitability challenges and maintain revenue growth moving forward. The current P/E ratio of 9.4 suggests the stock might be undervalued, presenting a potential opportunity for long-term investors, especially if the bank can address its profit challenges in the future.
