Bandhan Bank’s shares jumped nearly 4% after it released its December‑quarter business update.
Quarterly Loan and Deposit Growth
The bank’s loans and advances grew 10% year‑on‑year, reaching about ₹1.45 lakh crore at the end of December 2025. Deposits rose 11.1% to roughly ₹1.57 lakh crore, although they fell slightly (‑0.9%) from the September quarter.
CASA Ratio Falls
Current‑Account‑Savings‑Account (CASA) balances dropped 4.5% YoY to ₹42,730 crore, pushing the CASA ratio down to 27.26% from 31.73% a year earlier. A lower CASA ratio means the bank relies more on higher‑cost deposits, which could pressure margins.
Improved Asset Quality
Collection efficiency (excluding bad loans) improved to 98.1% in December, up from 97.8% in September. Better collections gave investors extra confidence and helped lift the share price.
Valuation Snapshot
- Current price: around ₹150, well below the 52‑week high of ₹192.48.
- Price‑to‑Earnings (P/E): 18.95
- Price‑to‑Book (P/B): 0.96
These ratios suggest the stock is priced close to its book value and may be fairly valued.
Technical Indicators
The 14‑day Relative Strength Index (RSI) sits at 43.1, placing the stock in a neutral zone. The share is trading below four of its eight key simple moving averages, indicating a mildly bearish bias in the short‑to‑medium term.
Key Takeaway
Strong loan growth and higher deposits are positive signs, but a slipping CASA ratio and modest technical outlook keep the picture mixed. Investors should watch margin trends and future deposit mix.
Remember, this is my view, not a prediction. Do your own research before making any decisions.