Bandhan Bank Share Tumbles Over 10% in Two Days – What Triggered the Sharp Decline?

Manoj Prasad

This week, there has been a lot of selling pressure on Bandhan Bank’s shares, which have dropped over 10% in just two trading sessions. The stock fell almost 7.5% on Monday, when it hit ₹233.10 per share. There were a lot of trades. This came after a 3.5% drop on Friday.

Investors are confused by the sudden drop in value since Bandhan Bank’s most recent quarterly report showed strong loan growth and stable asset quality trends. Let’s look into what might have caused the sudden drop in prices.

Strong Q3 Performance

On January 4, Bandhan Bank reported an 18.6% year-on-year jump in loans and advances to ₹1,15,964 crore for the December quarter. Total deposits also grew 14.8% to ₹1,17,422 crore, with Current Account and Savings Account balances rising 14% to ₹42,413 crore.

The lender seemed to be firing on all cylinders operationally. Then what went wrong?

Probable Triggers for the Fall

Market experts say that the main reason was probably people taking profits after the recent run-up. In just three months, the stock had gone up more than 15%, which made it a great time for buyers to lock in gains.

Some traders may have been worried about the quality of the assets because of the small drop in collection efficiency and the rise in gross NPAs. The general market decline, in which the Nifty fell 1.5% over two sessions, may have also made people more likely to sell.

What Should Investors Do?

Even though the short term is unclear, most analysts are still optimistic about Bandhan Bank’s future. The stock still has a “Buy” rating from the global firm Jefferies, and their price goal for it is ₹254.

Bigul CEO Atul Parakh said, “The Q3 update shows that Bandhan Bank is making good operational progress, keeping good asset quality and collection efficiency.” The sharp drop appears to have been caused by short-term causes such as taking profits and a generally weak market.


The size of the drop is scary, but the correction seems to have more to do with short-term market dynamics than with Bandhan Bank’s financial health. Long-term buyers may use this drop to buy more of the stock instead of selling quickly.

Bandhan Bank is still in a good situation to make good returns once the irrational excitement dies down. The bank’s management predicts loan growth of 20 to 25 percent and stable margins.

Bandhan Bank Financials

Income of last 4 years

PeriodMar 2023Mar 2022Mar 2021Mar 2020
Net Interest Income9,259.628,714.027,563.366,323.91
Loan Loss Provision5,218.566,713.333,757.961,392.15
Non- Interest Income Bank2,468.552,822.822,022.251,549.20
Non- Interest Expense Bank-3,616.63-4,694.89-2,878.99-2,427.54
Net Income Before Taxes2,892.98128.622,948.664,053.42
Net Income2,194.64125.792,205.463,023.74
Diluted Normalized EPS13.620.7813.6818.72
*All figures in crores except per share values

Balance Sheet

PeriodMar 2023Mar 2022Mar 2021Mar 2020
Total Assets1,55,769.971,38,866.551,15,016.1791,717.80
Total Liabilities1,36,185.821,21,485.3997,607.9976,522.34
Total Equity19,584.1517,381.1517,408.1815,195.46
Tangible Book Valueper Share Common Eq121.58107.91108.0994.37
*All figures in crores except per share values


PeriodMar 2023Mar 2022Mar 2021Mar 2020
Cashfrom Operating Activities-4,244.62902.04-909.187,707.57
Cashfrom Investing Activities-1,617.94-611.83-1,803.87-5,311.54
Cashfrom Financing Activities4,791.252,802.80588.45154.20
Net Changein Cash-1,071.303,093.02-2,124.612,550.23
*All figures in crores except per share values
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