bank stocks: Private bank Bandhan Bank shares are in a big buy trend today. Domestic broker KRChoksey has a Buy rating but has lowered its price target. Due to Bandhan Bank’s weak quarterly results in December 2022, the brokerage firm lowered its price target by about 21 per cent to Rs 305 from Rs 385 (Bandhan Bank price target) have do. Although that target price is also 25 percent above current levels. Its shares are currently trading at Rs 244.25 on the BSE, up 1.03 percent.Bandhan Bank share price) continue to be traded.
Why Cut Bandhan Bank’s Price Target?
Bandhan Bank’s financial performance remained subdued in the December quarter of 2022 due to sluggish business. The bank’s interest income fell and the increase in provisions also affected the result. Credit growth was impacted by slower growth in the MFI segment. The bank is currently more focused on strengthening the non-MFI portfolio and aims to diversify its portfolio by FY2025, which means the bank will have fewer MFI portfolios.
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The bank is focused on building a strong liability franchisee that will help it maintain its net interest margin (NIM). When it comes to asset quality, MFIs’ stretched asset pool needs to be cautious. For all of these reasons, the brokerage firm lowered its estimate for fiscal 24. The broker maintained its buy rating but lowered its price target.
Read Bandhan Bank’s Q3 results here
That was the performance of the stocks
Bandhan Bank shares stood at Rs 349.50 last year on May 17, 2022, a record high in a year. However, it then fell 40 per cent to 209.45 rupees on 22 November 2022 on six-month selling, a record 52-week low. The buying trend in Bandhan Bank shares has returned and has rebounded 17 percent so far, but is still down 30 percent from its one-year high.
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