Bandhan Bank shares slide nearly 20% after FY27 guidance cut
Bandhan Bank's shares slid over 3% on Thursday, adding up to a two-day drop of nearly 20%.
The main reason? The bank lowered its growth and profit targets for FY27 during its latest earnings call, blaming tougher market conditions like tighter cash flow and pricier funding, even though their recent quarter numbers were solid.
Bandhan Bank cuts RoA and NIM
The bank now expects lower returns (RoA down to 1.2-1.4% from 1.6-1.8%) and slimmer net interest margins (6.2% instead of 6.5%).
Operating costs are up a bit too, mainly due to more tech spending, and loan growth forecasts have been trimmed thanks to risks from high energy prices and supply chain issues.
Still, analysts at JPMorgan and Nomura aren't panicking. They kept their "Neutral" ratings on the stock with target prices of ₹175 and ₹190.