NSEI:BANDHANBNK

Stock Analysis Report

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Executive Summary

Bandhan Bank Limited provides commercial banking services in India. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has Bandhan Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BANDHANBNK is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BANDHANBNK's weekly volatility has decreased from 12% to 6% over the past year.


Market Performance


7 Day Return

4.9%

BANDHANBNK

1.8%

IN Banks

1.8%

IN Market


1 Year Return

-36.9%

BANDHANBNK

-14.0%

IN Banks

7.9%

IN Market

Return vs Industry: BANDHANBNK underperformed the Indian Banks industry which returned -14% over the past year.

Return vs Market: BANDHANBNK underperformed the Indian Market which returned 7.9% over the past year.


Shareholder returns

BANDHANBNKIndustryMarket
7 Day4.9%1.8%1.8%
30 Day26.8%21.5%10.9%
90 Day20.0%18.3%9.8%
1 Year-36.9%-36.9%-14.0%-14.0%10.0%7.9%
3 Yearn/a-25.4%-26.1%8.1%2.8%
5 Yearn/a8.7%6.4%55.3%43.6%

Long-Term Price Volatility Vs. Market

How volatile is Bandhan Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bandhan Bank undervalued compared to its fair value and its price relative to the market?

21.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BANDHANBNK (₹367) is trading above our estimate of fair value (₹137.25)

Significantly Below Fair Value: BANDHANBNK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BANDHANBNK is poor value based on its PE Ratio (21.7x) compared to the IN Banks industry average (21x).

PE vs Market: BANDHANBNK is poor value based on its PE Ratio (21.7x) compared to the Indian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: BANDHANBNK is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: BANDHANBNK is overvalued based on its PB Ratio (3.5x) compared to the IN Banks industry average (0.8x).


Next Steps

Future Growth

How is Bandhan Bank forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BANDHANBNK's forecast earnings growth (27.6% per year) is above the savings rate (7.2%).

Earnings vs Market: BANDHANBNK's earnings (27.6% per year) are forecast to grow faster than the Indian market (24.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BANDHANBNK's revenue (20.1% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: BANDHANBNK's revenue (20.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BANDHANBNK's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Bandhan Bank performed over the past 5 years?

32.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BANDHANBNK has a high level of non-cash earnings.

Growing Profit Margin: BANDHANBNK's current net profit margins (43.7%) are lower than last year (46%).


Past Earnings Growth Analysis

Earnings Trend: BANDHANBNK's earnings have grown significantly by 32.1% per year over the past 5 years.

Accelerating Growth: BANDHANBNK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BANDHANBNK had negative earnings growth (-1.6%) over the past year, making it difficult to compare to the Banks industry average (-1.6%).


Return on Equity

High ROE: BANDHANBNK's Return on Equity (16.3%) is considered low.


Next Steps

Financial Health

How is Bandhan Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: BANDHANBNK's Assets to Equity ratio (6.1x) is low.

Allowance for Bad Loans: BANDHANBNK has a sufficient allowance for bad loans (379%).

Low Risk Liabilities: 78% of BANDHANBNK's liabilities are made up of primarily low risk sources of funding.

Loan Level: BANDHANBNK has an appropriate level of Loans to Assets ratio (72%).

Low Risk Deposits: BANDHANBNK's Loans to Deposits ratio (111%) is appropriate.

Level of Bad Loans: BANDHANBNK has an appropriate level of bad loans (1.1%).


Next Steps

Dividend

What is Bandhan Bank current dividend yield, its reliability and sustainability?

1.01%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BANDHANBNK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BANDHANBNK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BANDHANBNK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BANDHANBNK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BANDHANBNK is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BANDHANBNK's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Chandra Ghosh (59 yo)

5.33yrs

Tenure

₹21,041,874

Compensation

Mr. Chandra Shekhar Ghosh Founded Bandhan Bank Ltd. in 2001 and has been its Chief Executive Officer, Executive Director and Managing Director since July 10, 2015. Mr. Ghosh has been one of the foremost pr...


CEO Compensation Analysis

Compensation vs Market: Chandra's total compensation ($USD284.22K) is below average for companies of similar size in the Indian market ($USD1.00M).

Compensation vs Earnings: Chandra's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Chandra Ghosh
Founder5.33yrs₹21.04m0.098%
₹ 577.8m
Sunil Samdani
Chief Financial Officer4.58yrs₹17.52m0.0019%
₹ 11.1m
Ronti Kar
Chief Information Officerno data₹9.39mno data
Srinivasan Balachander
Chief Compliance Officerno data₹11.83mno data
Indranil Banerjee
Company Secretary & Compliance Officer4.58yrs₹5.90m0.00010%
₹ 591.0k
Rahul Parikh
Executive President and Chief Marketing & Digital Officer0.17yrno datano data
Hiren Shah
Senior VP & Head of Investor Relationsno datano datano data
S. Rao
Head of Legal0.42yrno datano data
Santanu Banerjee
Head of Human Resources6.17yrsno datano data
Nand Singh
Head of Banking Operations & Customer Servicesno datano data0.00090%
₹ 5.3m
Biswajit Das
Chief Risk Officerno datano datano data
Dibakar Ghosh
Head of IT Operations - System & Networking4.58yrsno datano data

4.6yrs

Average Tenure

50yo

Average Age

Experienced Management: BANDHANBNK's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chandra Ghosh
Founder5.33yrs₹21.04m0.098%
₹ 577.8m
Sisir Chakrabarti
Independent Director5.92yrs₹2.23mno data
Harun Khan
Independent Director2.67yrs₹1.85mno data
Anup Sinha
Independent Non-Executive Chairman1.83yrs₹3.33mno data
Santanu Mukherjee
Independent Director1.83yrs₹1.85mno data
Ranodeb Roy
Non-Executive Non-Independent Director4.33yrs₹975.00kno data
Snehomoy Bhattacharya
Independent Director5.33yrs₹1.78mno data
Holger Michaelis
Nominee Director4.75yrs₹675.00kno data
Thekedathumadam Subramani Gain
Independent Director5.25yrs₹875.00kno data
Bhaskar Sen
Independent Director5.58yrs₹2.00mno data
Narayan Vasudeo Tendulkar
Additional Independent Director0.50yrno datano data
Vijay Bhatt
Independent Director0.50yrno datano data

4.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BANDHANBNK's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bandhan Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bandhan Bank Limited
  • Ticker: BANDHANBNK
  • Exchange: NSEI
  • Founded: 2015
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: ₹591.006b
  • Shares outstanding: 1.61b
  • Website: https://www.bandhanbank.com

Number of Employees


Location

  • Bandhan Bank Limited
  • Adventz Infinity@5
  • Floors 12-14
  • Kolkata
  • West Bengal
  • 700091
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
541153BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2018
BANDHANBNKNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2018

Biography

Bandhan Bank Limited provides commercial banking services in India. It operates through Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business segments. The company offers saving...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 12:19
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.