Business
Bandhan Bank shares rise nearly 4% after December-quarter loans grow 10%
The bank reported a 10% year-on-year growth in loans and advances, which stood at Rs 1.45 lakh crore as of December 31, 2025. This compares with Rs 1.32 lakh crore in the same quarter of the previous financial year, reflecting steady credit expansion.
Its total deposits increased 11.1% year-on-year to Rs 1.57 lakh crore, up from Rs 1.41 lakh crore as of December 31, 2024. However, on a quarter-on-quarter basis, deposits declined marginally by 0.9% from Rs 1.58 lakh crore reported in the September 2025 quarter.
The bank’s low-cost CASA (Current Account Savings Account) deposits fell 4.5 per cent year-on-year to Rs 42,730 crore, compared with Rs 44,735 crore in the year-ago period. As a result, the CASA ratio declined to 27.26 per cent, from 31.73 per cent a year earlier and 27.97 per cent in the September quarter. A lower CASA ratio indicates a higher dependence on costlier deposits, which could impact margins.
On the operational front, Bandhan Bank showed improved asset quality trends, with pan-bank collection efficiency (excluding NPAs) rising to 98.1 per cent in December 2025, compared with 97.8 per cent in September 2025. The improvement in collections provided additional comfort to investors, supporting the stock’s upward movement.
Price and Valuation: Bandhan Bank’s share price is currently around Rs 150, which is significantly below its 52-week high of Rs 192.48, indicating that the stock has not yet recovered to its recent peak levels. The stock is trading at a price-to-earnings (P/E) ratio of 18.95 and a price-to-book (P/B) ratio of 0.96, suggesting relatively reasonable valuation compared with its book value.
As per Trendlyne data, on the technical front, the 14-day Relative Strength Index (RSI) stands at 43.1, placing the stock in a neutral zone. Typically, an RSI below 30 signals oversold conditions, while a reading above 70 indicates overbought conditions.Moving Averages: From a trend perspective, Bandhan Bank is trading below four out of its eight key simple moving averages (SMAs), indicating a mildly bearish bias in the short to medium term.
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