Ritu Singh

JPM on Bandhan BK Neutral, TP Rs 175 Reported a steady 2QFY27, with a PAT beat (+10% vs JPMe) and improving return ratios supported by higher non-interest income (+8% vs JPMe) and lower opex (-4% vs JPMe). Loan growth remained healthy, led by the non-EEB book, while EEB stabilized after several quarters of normalization Bank expects to deliver 8-10% y/y EEB growth in FY27, with a revival in 2HFY27 backed by benign delinquency trends, with the full-year loan growth target intact at 14% While deposit growth picked up, CASA moderated to 26.7% due to SA runoff after interest-rate recalibration and outflow related to a state government scheme, partly offset by strong CA growth with Bandhan using bulk deposits for liquidity and balance-sheet management Asset-quality indicators remained broadly controlled, though gross slippages increased q/q on seasonality & management noted that drought-related impact should be minimal Bandhan reiterated its 4QFY27 RoA guidance of 1.2–1.4%, with a medium-term aspiration unchanged at 1.6–1.8% CLSA on Bandhan BK O-P, TP cut to Rs 195 from Rs 235 2QFY27 PAT 4% above estimate, as a 7% PPOP beat was partly offset by higher provisions. NII was in line, while higher fee income, driven by stronger disbursements, helped Bandhan deliver a 1.2% ROA (similar to its FY27 exit ROA guidance). Management maintains its medium-term ROA aspiration of 1.6-1.7% Wholesale segment continues to drive loan growth and now constitutes 34% of the loan book, while microfinance (MFI) was flat QoQ. Deposit growth remained soft, with average CASA growing 4% YoY. Asset quality was largely stable, with net slippage ratio flat QoQ. However, management’s remarks of 15-20bp higher credit costs under the ECL framework was above expectation. Nomura on Bandhan BK Neutral, TP Rs 175 2QFY27 PAT of INR6.2bn (+24% q-q), 12% above estimate, with RoA/RoE of 1.18%/9.45%. Core PPOP of INR15.2bn (+14% q-q) beat estimate by 9%, driven by NII, fee income and a lower opex. NII grew 1% q-q (+14% y-y), as calculated NIM rose 4bp q-q to 5.83%. Credit cost was slightly higher than expected at 1.87% (est 1.80%), with gross slippage edging up to 2.95% CASA ratio fell 269bp q-q to 26.7% following the SA rate recalibration. Management guided to FY27E NIM of 6.1-6.2%, 14% loan growth and 4QFY27E RoA of 1.2-1.4% Expect RoA of 1.2-1.4% & RoE of 10-12% over FY27-29F @CNBCTV18News @_RituSingh