NSEI:BANDHANBNK

Stock Analysis Report

Executive Summary

Bandhan Bank Limited provides commercial banking services in India.

Rewards

Earnings are forecast to grow 23.2% per year

Earnings grew by 66.4% over the past year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with excellent 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

BANDHANBNK

-1.8%

IN Banks

-1.8%

IN Market


1 Year Return

22.3%

BANDHANBNK

12.6%

IN Banks

5.2%

IN Market

Return vs Industry: BANDHANBNK exceeded the Indian Banks industry which returned 12.6% over the past year.

Return vs Market: BANDHANBNK exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

BANDHANBNKIndustryMarket
7 Day-0.7%-1.8%-1.8%
30 Day1.5%2.7%-0.9%
90 Day28.4%14.4%8.3%
1 Year23.0%22.3%13.0%12.6%7.2%5.2%
3 Yearn/a26.3%24.9%30.3%23.4%
5 Yearn/a11.3%7.8%39.3%26.8%

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?

29.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BANDHANBNK (₹577.4) is trading above our estimate of fair value (₹250.13)

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 (29.3x) compared to the Banks industry average (22.1x).

PE vs Market: BANDHANBNK is poor value based on its PE Ratio (29.3x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: BANDHANBNK is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BANDHANBNK is overvalued based on its PB Ratio (6.6x) compared to the IN Banks industry average (0.7x).


Next Steps

Future Growth

How is Bandhan Bank forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

23.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BANDHANBNK's forecast earnings growth (23.2% per year) is above the savings rate (6.5%).

Earnings vs Market: BANDHANBNK's earnings (23.2% per year) are forecast to grow faster than the Indian market (19.8% per year).

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

Revenue vs Market: BANDHANBNK's revenue (24.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: BANDHANBNK's revenue (24.3% 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 (25.9%)


Next Steps

Past Performance

How has Bandhan Bank performed over the past 5 years?

38.1%

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 (46%) are higher than last year (40.7%).


Past Earnings Growth Analysis

Earnings Trend: BANDHANBNK's earnings have grown significantly by 38.1% per year over the past 5 years.

Accelerating Growth: BANDHANBNK's earnings growth over the past year (66.4%) exceeds its 5-year average (38.1% per year).

Earnings vs Industry: BANDHANBNK earnings growth over the past year (66.4%) exceeded the Banks industry 25.8%.


Return on Equity

High ROE: BANDHANBNK's Return on Equity (19.7%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: BANDHANBNK has a low level of unsold assets or inventory.

Debt Coverage by Assets: BANDHANBNK's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: BANDHANBNK's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BANDHANBNK has a sufficient allowance for bad loans.

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

Loan Level: BANDHANBNK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BANDHANBNK's loans are broadly funded by customer deposits.

Level of Bad Loans: BANDHANBNK has an appropriate level of bad loans (0.69%)


Next Steps

Dividend

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

0.52%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: BANDHANBNK's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BANDHANBNK's dividend (0.52%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BANDHANBNK has been paying a dividend for less than 10 years.

Growing Dividend: BANDHANBNK's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.2%), BANDHANBNK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BANDHANBNK's dividends in 3 years are forecast to be well covered by earnings (19.8% payout ratio).


Next Steps

Management

What is the CEO of Bandhan Bank's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Chandra Ghosh (59yo)

4.4yrs

Tenure

₹20,447,379

Compensation

Mr. Chandra Shekhar Ghosh Founder of Bandhan Bank Ltd. in July 10, 2015 and has been its CEO, Director and Managing Director since July 10, 2015. Mr. Ghosh served as the Chairman of the Board and Managing ...


CEO Compensation Analysis

Compensation vs Market: Chandra's total compensation ($USD286.02K) is below average for companies of similar size in the Indian market ($USD1.13M).

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


Management Age and Tenure

3.7yrs

Average Tenure

51yo

Average Age

Experienced Management: BANDHANBNK's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: BANDHANBNK's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹732,46827 Aug 19
Tapojit Roy
EntityIndividual
Shares1,510
Max Price₹485.08
Buy₹1,685,04014 Mar 19
Sudip Biswas
EntityIndividual
Shares3,500
Max Price₹481.44

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.2%.


Management Team

  • Chandra Ghosh (59yo)

    Founder

    • Tenure: 4.4yrs
    • Compensation: ₹20.45m
  • Dibakar Ghosh (51yo)

    Head of IT Operations - System & Networking

    • Tenure: 3.7yrs
  • Ronti Kar (51yo)

    Head of IT Applications

    • Tenure: 0yrs
  • Deepankar Bose (60yo)

    Head of Corporate Centre

    • Tenure: 1.9yrs
  • Hiren Shah (39yo)

    Senior VP & Head of Investor Relations

    • Tenure: 0yrs
  • Sunil Samdani (44yo)

    Chief Financial Officer

    • Tenure: 3.7yrs
  • Santanu Banerjee (50yo)

    Head of Human Resources

    • Tenure: 0yrs
  • Subhro Gupta (59yo)

    Chief Audit Executive

    • Tenure: 0yrs
  • Mahendra Gupta

    Head of Legal

    • Tenure: 0yrs
  • Arvind Kanagasabai (58yo)

    Head of Treasury

    • Tenure: 0yrs

Board Members

  • Chintaman Dixit (69yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹1.78m
  • Sisir Chakrabarti (67yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹2.00m
  • Harun Khan (65yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹1.28m
  • Anup Sinha (67yo)

    Non-Executive Independent Chairman

    • Tenure: 0.9yrs
    • Compensation: ₹861.29k
  • Chandra Ghosh (59yo)

    Founder

    • Tenure: 4.4yrs
    • Compensation: ₹20.45m
  • Ronnie Roy (51yo)

    Non-Executive Non-Independent Director

    • Tenure: 3.4yrs
    • Compensation: ₹1.28m
  • Snehomoy Bhattacharya (66yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹1.68m
  • Holger Michaelis (49yo)

    Nominee Director

    • Tenure: 3.8yrs
    • Compensation: ₹625.00k
  • Thekedathumadam Subramani Gain (57yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹1.20m
  • Bhaskar Sen (66yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: ₹2.44m

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: 2014
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: ₹917.418b
  • 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 Analysis2019/12/07 13:01
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.