Bandhan Bank shares slip 3% to hit fresh record low; is more pain ahead?

Shares of Bandhan Bank Ltd continued their downward run for the third consecutive session in Friday's trade. The stock fell 3.49 per cent to hit a new all-time low of Rs 143.70. At this price, it has corrected over 18 per cent in a month.

In the December 2024 quarter (Q3 FY25), the private lender's collection efficiency continued to deteriorate by 60 basis points (bps), quarter-on-quarter (QoQ), to 97.6 per cent as against 98.2 per cent in Q2 FY25. During the quarter under review, CASA (Current Account Savings Account) deposits, bulk deposits and total deposits slipped by 5.4 per cent, 3.7 per cent and 1.1 per cent on a sequential basis, respectively.

On technical setup, a few analysts largely suggested a 'bearish' trend in the near term. Support on the counter could be seen in the Rs 140-135 zone. Resistance may be found in the Rs 155-170 range.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Bandhan Bank is currently experiencing a significant decline, with no indications of relief or recovery. The technical outlook suggests a continuous downward trend and it is advisable to remain on the sidelines until a decisive turnaround is observed in the stock."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 135 and resistance at Rs 160 . A decisive move above Rs 160 level may trigger a further upside towards Rs 170. The expected trading range will be between Rs 135 and Rs 170 for the short term."

Sebi-registered research analyst AR Ramachandran said the stock looked bearish yet oversold on daily charts with next support at Rs 140. "Investors should buy it only on a daily close above resistance of Rs 155 level, which could lead it to an upside target of Rs 173 in the near term."

The lender's stock has a price-to-equity (P/E) ratio of 8.60 against a price-to-book (P/B) value of 1.01. Earnings per share (EPS) stood at 17.31 with a return on equity (RoE) of 11.76. As of September 2024, promoters held a 39.98 per cent stake in private bank.