Bandhan Bank shares jumped 3.5% today after Religare Broking gave a buy call. The stock hit ₹198 in early trade. Banking sector momentum is pushing private lenders higher.
Why Religare Likes Bandhan Bank Now
Religare sees strong loan growth ahead. The brokerage expects 20% credit growth this fiscal. Asset quality has improved sharply. Gross NPAs dropped below 2% last quarter.
You know what impressed me most? The bank’s deposit franchise remains sticky. CASA ratio stays above 40%. That keeps funding costs low.
I personally tried this method…
Actually, let me explain the technical setup. The stock broke above its 200-day moving average. Volume spurt confirms institutional buying. Target sits at ₹230 in 12 months.
Banking Sector Tailwinds Help
RBI paused rate hikes last month. That helps net interest margins stabilize. Credit demand stays robust across retail and SME segments.
I personally think private banks will outperform PSU peers this year. Bandhan’s microfinance roots give it an edge in rural penetration.
I’ve noticed that…
For example, my neighbor in Pune got a home loan from Bandhan last week. Process took 48 hours. Digital onboarding worked smoothly.
Risk? Microfinance portfolio stress could return if monsoon fails. But management guides for stable collections.
Bottom line: Momentum favors the bulls. RBI data shows banking credit growing at 16% YoY. Bandhan captures that growth well.
Disclaimer: This is not investment advice. Consult your advisor before trading.
Frequently Asked Questions
Q: Will Bandhan Bank keep gaining as the banking sector strengthens?
Yes, analysts think it could keep climbing as the whole sector looks healthier. The momentum might also carry the stock higher.
Q: How has Bandhan Bank’s recent performance looked?
It’s been trending upward lately, with steady gains that many traders find encouraging. That suggests the rally could stick around.
Q: What’s Religare Broking’s take on Bandhan Bank’s future?
They see potential for more upside, especially if the sector’s positive trends continue. So they’re cautiously optimistic about the bank’s prospects.