Bandhan Bank shares decline 5% as CLSA downgrades stock, cuts price target on weak Q2

Shares of Bandhan Bank Ltd. declined 6% on Friday, October 31, after brokerage firm CLSA downgraded its rating on the stock and cut its target price by 13.6%.The brokerage has downgraded its rating to “accumulate” from “buy” and has cut its target price from ₹220 apiece to ₹190 per share, which is still 11.4% higher than its previous closing price of ₹170.58 apiece.

CLSA said the lender’s net interest income and pre-provision operating (PPOP) were weak and credit costs were high.

Its MFI book is still declining, although its pace is slower, CLSA said.The lender’s net interest margin declined 60 basis points on yield cuts and repo-rate pass through.
Its NIM has likely bottomed and will recover in the financial year 2027, CLSA said.Meanwhile, brokerage firm Nomura has a “neutral” call on the stock with a target price of 170 per share.

It said the company reported a weak second quarter with soft NIM and asset quality.

It cut the lender’s FY26-28 earnings per share by 13-38%

Its loan growth was driven by secured assets, Nomura said.

28 analysts have coverage on Bandhan  Bank out of which 14 have a “buy” rating, ten say “hold”, while four have a “sell” rating.

Bandhan Bank shares were down 6.2% at ₹160.05 apiece around 9.40 am.