Bandhan Bank Ltd: Financial Update

Bandhan Bank Limited, a prominent player in the Indian banking sector, has experienced a mix of positive and challenging developments recently. As of July 4, 2025, the bank’s financial performance and stock movements have been closely monitored by investors and analysts.

Deposits and Stock Performance

In June 2025, Bandhan Bank reported a significant 16% year-over-year increase in total deposits, indicating strong customer trust and growth in its deposit base. This positive trend was highlighted by Capital Market on July 4, 2025.

However, the bank faced challenges in the first quarter of the financial year 2026. Business Standard reported on July 4, 2025, that Bandhan Bank’s shares slipped by over 3% following a decline in its CASA (Current Account and Savings Account) deposits. The stock fell to ₹178 per share, marking the steepest intraday drop.

Analyst Insights and Market Reactions

Despite the recent dip, UBS raised its stock price target for Bandhan Bank to ₹210, citing improving Microfinance Institution (MFI) trends. This optimistic outlook was reported by Investing.com on July 2, 2025.

The broader banking sector also faced pressures, as noted by ZeeBiz on July 4, 2025. Bank of Baroda, Bandhan Bank, RBL, and Punjab & Sind Bank all posted mixed results for Q1FY26, with brokerages flagging deposit and CASA pressures as key concerns.

Market Context

In the broader market context, Bandhan Bank’s stock was among the top losers on the Nifty Midcap 150, as reported by Moneycontrol on July 4, 2025. The bank’s performance reflected broader market trends, with other stocks also experiencing declines.

Conclusion

Bandhan Bank Ltd continues to navigate a complex financial landscape, balancing growth in deposits with challenges in maintaining CASA deposits. The bank’s stock remains a focal point for investors, with analyst insights providing a mixed but cautiously optimistic outlook. As the financial year progresses, Bandhan Bank’s ability to address these challenges will be crucial in determining its future trajectory.