JM Financial maintains buy on Bandhan Bank, target price Rs 710

JM Financial has maintained its buy rating on Bandhan Bank in the long term with a target price of Rs 710. Shares of Bandhan Bank declined 2% to Rs 525.35 on Wednesday while the BSE Sensex closed 181.94 points up at 40,651.64.

Company Financials

The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs 1064.21 crore (1.76 % of total assets) and Net Non Performing Assets (Net NPAs) of Rs 336.88 crore (.56% of total assets). For the quarter ended 30-09-2019, the company has reported a standalone interest income of Rs 2370.15 crore, up 3.88% from last quarter Interest Income of Rs 2281.71 crore and up 69.32% from last year same quarter Interest Income of Rs 1399.84 crore. The bank has reported net profit after tax of Rs 971.80 crore in the latest quarter.


Investment Rationale

The brokerage continues to like Bandhan for its strong track record on profitability, asset quality and efficiency. Bandhan has a strong growth runway and the Gruh merger gives it a much-need diversification while ensuring stability and compliments the business model, said the brokerage.