Bandhan Bank: Beat meets bigger miss: 4Q27F RoA guidance cut by 40bp

研报英文原文证据摘录

Bandhan Bank: Beat meets bigger miss: 4Q27F RoA guidance cut by 40bp

Global Markets Research

Bandhan Bank BANH.NS BANDHAN IN 22 July 2026

EQUITY: FINANCIALS

Beat meets bigger miss: 4Q27F RoA guidance cut by 40bp Rating Remains Neutral

Target price

Reduced from INREarnings cut by 4-7% over FY27-28F; maintain Neutral INR 190 195

Bandhan Bank's 1QFY27 PAT of INR5bn (+35% y-y, -6% q-q) beat our estimate by 8%, Closing price INR 209 21 July 2026driven by strong NII, fee income and lower credit costs. The real story, though, is

management cutting FY27F RoA guidance to 1.2-1.4% (from 1.6-1.8%), citing cost-of-

Implied upsidefunds pressure and rising tech opex tied to the external environment. Of the 40bp cut, -9.1%

30bp reflects NIM expansion that management had earlier expected over the coming

Market Cap (USD mn) 3,496.2

quarters but no longer sees playing out, and 10bp reflects higher tech-related opex. The ADT (USD mn) 28.1

bank raised average SA rates by 20bp and peak TD rates by 20bp towards the end of 1Q,

on intense deposit competition, so the cost impact will flow through over the coming Relative performance chart

quarters. This comes as a surprise given we had expected funding costs to ease on the

RBI's supportive measures. Asset quality held up: credit costs at 1.8% (down slightly q-q),

though gross slippages ticked up to 2.9% (vs 2.8% in 4QFY26). We cut FY27-28F EPS by

4-7%, building in 18-24bp lower NIMs even after lowering credit cost assumptions to 1.8%

(from 2%). We maintain our Neutral rating, and cut our TP to INR190.

Fee income offsets opex drag; operating profit in line

NIM (calculated) was up 6bp q-q, leading to NII growth of 4% q-q (1% above our

forecast). The beat on NII and strong fee income were offset by higher opex, resulting in

in-line core PPOP.