In this article, we are going to talk about Bandhan Bank’s share price targets for 2023, 2024, 2025, and 2030 which runs its business with a different type of business model of the banking sector. This question definitely comes to the mind of many retail investors, will Bandhan Bank be able to grow its business fast with this business model in the coming days as well?
In this article, we will try to analyze the future business of Bandhan Bank thoroughly and know how the performance can show in the coming years.
Bandhan Bank Share Price Targets for 2023:
During the pandemic, Bandhan Bank’s business has seen a lot of difference in the business of the bank due to its focus on retail loans only. Retail loans mostly turned into NPAs as soon as the lockdown started. Its effect was seen in the share price along with the financial performance of the bank.
But gradually, as soon as the environment seems to be getting better, accordingly there is a good jump in the growth of the bank as well. Management says that if the environment seems to be improving in the coming years, then by FY 2023, the company’s credit growth can be seen growing at a very good pace compared to the previous years.
In view of this growth in the coming days of the bank, Bandhan Bank’s share price target 2023 is going to show you the first target of Rs 240. After this target, you can consider another target to hold for Rs.263.
Please Read: HDFC Bank Share Price Targets
Bandhan Bank Share Price Targets for 2024:
Having a good Net Interest Margin in any bank is very important for the growth of the business. It is the job of the bank to give that money to the loan customer at maximum interest by keeping a deposit with him at low interest. The higher the margin, the more banks can earn good profits.
If you see the Net Interest Margin of Bandhan Bank, it looks very good at about 8.5 percent. However, from time to time, a little margin is seen going up and down, but most of the time only the seeds of this are visible. If you compare the rest of the private sector with the largest bank, then the Net Interest Margin of Bandhan Bank is very strong.
That’s why Bandhan Bank is also called the most profitable bank in India. In the coming years, Bandhan Bank can show the first target of Rs 279 share price by 2024 with good business growth. After that, you can look for Rs 290 to be the second target interest.
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Bandhan Bank Share Price Targets for 2025
If we look at the business model of Bandhan Bank, then the entire focus is on retail loans. Banks give loans to the people of the village in small amounts with good interest rates, due to which the bank does not see the risk of more NPA.
Even if one or two people are not able to repay the loan, then due to the small amount of loan, the NPA in the business of Bandhan Bank is not seen as much. Under this good business policy of the bank, there is full hope of showing good growth in the long run.
Gradually, many other banks are also seen focusing more and more on retail loans. Because retail loans are much less risky than other corporate loans. Due to working with this business model, Bandhan Bank’s share price target By 2025, can see the first target of Rs 315. Then the second target is expected to show Rs 350.
Bandhan Bank Share Price Targets for 2030:
As you look at Bandhan Bank for a long time, you are going to see a strong position. If you look at the CASA Ratio of the bank, you get to see more than 45 percent. Which is very good as compared to other private banks. With this money, banks give loans to customers at very high interest rates and are seen earning good profits.
Along with this, good growth is also being shown in loan collection, due to which NPA is going to be very low on Bandhan Bank’s financials for a long time. In the long run, if Bandhan Bank is able to keep the NPA under control like this, then you are likely to see the share price trading around Rs 800 with good growth.
Bandhan Bank Share Price Targets For 2023, 2024, 2025, and 2030 are given below:
|Year||Share Price Target First||Share Price Target Second|
|2023||Rs. 240||Rs. 263|
|2024||Rs. 279||Rs 290|
|2025||Rs. 315||Rs. 350|
Bandhan Bank’s Stock Has a Forward-looking Perspective:
If seen from a future point of view, the way Bandhan Bank is showing growth with its new business model. Due to this, there can be full hope of showing good performance in the coming times as well.
Along with this, the full support of the government is also for the development of the SME sector. Due to this the SME sector will be seen taking loans to grow their small business in the future. Bandhan Bank can easily be seen taking maximum advantage of this sector in the future due to distributing more and more loans.
Risk in Bandhan Bank share:
If you see the biggest risk in Bandhan Bank, then due to the entire focus being dependent on the retail loan, a lot of trouble has to be faced at the time of loan collection. Along with this, many untoward incidents are also seen, due to which very strict rules on this sector can be seen from the government side in loan collection in the coming days. Due to this, there will be an impact on the business of Bandhan Bank.
Along with this, many big banks are also working slowly keeping the retail loan in focus. With this, you can see a lot of competition in the interest rate in the coming years. Due to competition, Bandhan Bank will also be seen reducing the interest rate, due to which there can be a significant drop in profits.
From my perspective:
If you look at the business model of Bandhan Bank, it is very good compared to the business of the rest of the banking sector. But at the same time, if you look at the investor’s point of view, then there is a lot of risk too.
The future of Bandhan Bank is going to depend on how the management handles this coming opportunity. So if you are planning to invest in this stock, then you must analyze yourself once.
I hope by reading the article on Bandhan Bank share price targets for 2023, 2024, 2025, and 2030, you have an idea of how the bank is likely to perform in the future with all the details. If you still have any questions related to this, then definitely ask in the comment.