Bandhan Bank Q1 Review: Brokerages Split On Profit Growth, Conservative Guidance — Check Target Price

Bandhan Bank reported a 35% increase in net profit for the first quarter, driven by a reduction in loan loss provisions. This strong earnings performance suggests the bank is managing its asset quality risks better than anticipated. However, the bank maintained a conservative outlook for its Return on Assets (RoA), which has raised questions about its medium-term efficiency.

Brokerages are divided on the stock's future. Foreign investment banks like Jefferies and Bank of America remain optimistic, maintaining their target prices. In contrast, Macquarie has adopted a cautious stance, citing the conservative guidance. This divergence highlights the uncertainty surrounding the bank's ability to sustain its current growth momentum.

For investors, the key focus should be on the bank's ability to improve its RoA over the coming quarters. Monitoring the management's commentary on credit growth and cost control will be crucial to understanding the bank's path forward.