Bandhan Bank shares dive 8% to hit fresh 3-year low, take 3-day fall to 14%

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Selling in shares of Bandhan Bank intensified, with the stock falling 8 per cent to hit a fresh 52-week low in Tuesday’s trade, even as the BSE Bankex constituents were trading mostly flat. With this, the scrip has taken its losing streak to third day, falling 14 per cent during the period. The scrip is trading at levels last seen in April 2020.

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The stock fell 7,86 per cent to hit a low of Rs 182.20 on BSE. It has fallen 14.25 per cent in three sessions. On NSE, the counter had sell orders of 18,35,451 shares against 8,47,804 shares. Turnover stood at Rs 274 crore at the timing of writing this report.

In its latest note, Emkay Global, which has a ‘Buy’ rating on the Bandhan Bank, said that the private sector lender is expected to log a better fourth quarter and could see interest from alpha-seeking investors.

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To recall, the private sector lender had reported that its net profit dipped by 66 per cent to Rs 290.60 crore year-on-year due to decline in net interest margin. The Kolkata-based lender had reported a 2.1 per cent drop in net interest income at Rs 2,080.40 crore for the quarter. The lender’s gross NPAs stood at Rs 6,964.8 crore as on December 31, which was higher than Rs 6,853.9 crore at the end of September, but lower than Rs 9,441.60 crore in the year-ago quarter.

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Nirmal Bang Institutional Equities has a ‘Buy’ rating on the stock but with a lower target of Rs 292 against Rs 324 earlier. Kotak Institutional Equities also likes Bandhan Bank among its midcap banking list that also includes IndusInd Bank, Karur Vysya Bank and DCB Bank. This brokerage has a buy rating on Bandhan Bank with a revised target of Rs 250 from Rs 270.

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As per Trendlyne, the scrip has an average target of Rs 308 based on 23 analyst recommendations, which suggests a 68 per cent potential upside on the counter.