Bandhan Bank’s Big Q4 Boost! Stock Hits 52-Week High After 11% Rally; More Upside Ahead? Check Target Price

Bandhan Bank Q4 Result: Shares of Bandhan Bank rallied close to 10% after the private lender reported a whopping 62% year-on-year jump in its net profit in the fourth quarter of the financial year 2025-26. The bank has also approved a dividend for FY26.

Bandhan Bank share price was trading 10.68% higher at Rs 197.35 per share on BSE with a market capitalisation of Rs 31,784.61 crore. The stock had touched its 52-week high mark of Rs 198 per share and an intraday low of Rs 185 per share.

Bandhan Bank Q4 Result Review

Bandhan Bank reported a strong quarter, which was led by a 30 basis points sequential expansion in NIMs and a strong improvement in credit costs in Q4FY26. The business momentum was also robust supported by seasonally strong Q4, as per Motilal Oswal's analysis of its quarterly earnings.

"NIMs improved to 6.2%, and are guided to expand further by 10-20bp over the next 2-3 quarters, aided by repricing of term deposits. The bank has indicated an exit FY27 NIM guidance of ~6.5% on earning assets (~6% on total assets), while we conservatively factor in ~6% NIM on earning assets," read the Motilal Oswal report.

The brokerage is also expecting improved forward flows for both the industry and Bandhan, particularly in the MFI segment.

Bandhan Bank Share Price Recommendation and Target Price

The brokerage has maintained its 'Buy' rating for Bandhan Bank stock and has revised its target to Rs 210 per share. "We had upgraded Bandhan in 3QFY26 on the back of improving visibility on growth and lower credit cost. We upgrade our earnings estimates by 4-5% for FY27/FY28 and expect Bandhan to deliver RoA of 1.3%/1.5% in FY27E/FY28E vs. 0.6% in FY26. Maintain BUY with a revised TP of INR210 (1.2x Sep'27E ABV)," noted Motilal Oswal in its report.

Bandhan Bank Q4 Result Recap

The private bank's net profit for Q4FY26 jumped by 68% on an annual basis to Rs 534 crore, from Rs 318 crore. Its net interest income (NII) growth remained decent and increased by 1.4% to Rs 2,795.4 crore against Rs 2,756 crore in Q4FY25.

Bandhan Bank Dividend

Bandhan Bank's board of directors, on Tuesday, recommended a dividend of Rs 1.5 per equity share with a face value of Rs 10 each. "The Board, at its aforesaid meeting held today, has also recommended a dividend of Rs. 1.50 (Rupee One and Fifty Paisa Only), per equity share having a face value of Rs. 10 each (i.e., 15%), from the profits of the Bank for the Financial Year ended March 31, 2026," as per the BSE filing released on Tuesday.