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Bandhan Bank just gave its investors a pleasant jolt. The stock surged nearly 7 per cent intraday on June 9, 2025, touching Rs 186 before cooling off slightly.
So, what’s behind this sudden spike? A mix of momentum, macro policy and maybe just a pinch of hope.
Why the sudden jump?
- RBI’s big rate cut: The Reserve Bank of India slashed the repo rate by 50 basis points and cut the CRR too, injecting more liquidity into the system. That’s good news for lenders, especially those like Bandhan that thrive on lending to small businesses and individuals.
- Market mood shift: With the broader market rallying and mid-sized financial stocks getting love, Bandhan is riding the wave. The fact that it had underperformed recently made it a tempting bet for those looking for a catch-up trade.
About the bank
Bandhan Bank started as a microfinance lender and later turned into a full-fledged bank in 2015. Today, it operates across India with a strong presence in the east and northeast, offering loans to small borrowers, housing finance, and more.
Here’s a look at its fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 29,755 crore |
| ROE | 10.8 per cent |
| ROCE | 10.3 per cent |
| P/E ratio | 10.8 |
| P/B ratio | 1.2 |
| Dividend yield | 0.8 per cent |
| Book value | Rs 151.2 |
| EPS | Rs 17 |
Value Research Online ratings
- Overall: 5/5
- Quality: 9/10
- Growth: 7/10
- Valuation: 8/10
- Momentum: 4/10
Should investors get excited?
Not so fast.
Bandhan’s fundamentals haven’t changed overnight. In its recent results, net interest income was flat and margins were under pressure. While the liquidity boost may help, the bank still needs to prove it can grow profitably and manage asset quality.
That said, it’s trading at modest valuations and any sustained improvement in performance could trigger more re-rating.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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