Keeping its bull run intact for the fourth straight session on Wednesday, February 25, shares of Bandhan Bank surged another 1.3% to ₹182.60, the highest level since July 2025. Even during the market meltdown in the previous session, the small-cap banking counter withstood the pressure by surging 4%.
The four-day winning run, including today, has resulted in a cumulative gain of 7.8% and has contributed to a 17% gain in February so far, marking its biggest monthly gain since April 2023, when it rallied 17%.
What is keeping Bandhan Bank shares higher?
The small-cap stock stole the spotlight in late January following better-than-expected performance in the December quarter, which impressed not only the Street but also brokerages that upgraded their ratings and revised target prices higher for the stock.
Since its results announcement on January 22, the stock has surged 28.20%. Despite the bank’s net profit declining sharply in the third quarter of this fiscal, primarily due to elevated credit costs, it posted a strong operating performance.
It reported a 51.7% YoY decline in net profit to ₹205.59 crore. Sequentially, however, the lender’s net profit surged around 84% QoQ.
Its asset quality improved, with the gross NPA ratio falling to 3.33% in Q3 from 4.68%. Looking ahead, analysts expect the bottom line to improve amid moderation in credit costs.
Following the Q3 numbers, domestic brokerage firm Motilal Oswal upgraded its rating on Bandhan Bank to ‘Buy’ with a target price of ₹175 apiece. It expects the bank’s operating performance to recover in the coming quarters, with asset quality regaining normalcy and margins stabilising.
“Although we remain watchful of the forthcoming West Bengal elections, we strongly believe that the current risk-reward is favorable,” the brokerage said.
Another domestic brokerage firm, JM Financial, also upgraded the stock to ‘Add’ and increased its target price to ₹160 apiece, as the brokerage sees limited downside potential for the stock.
Meanwhile, ICICI Securities has also upgraded the rating to ‘Buy’ from the earlier ‘Hold’ but kept its target price unchanged at ₹175 apiece. The brokerage sees the bank delivering a sizeable delta in RoA from 0.6% in FY26E to 1.2% in FY27E, driven by easing credit costs.
Bandhan Bank share price trend
Bandhan Bank shares have staged a strong comeback in 2026, gaining 25% so far, after remaining under pressure throughout the second half of 2025, which resulted in an 8.32% drop for the year. This was also the second consecutive yearly decline.
Over the last seven years, the stock has managed to deliver a positive return in only one year, which was also a modest 3%.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
