English
Shares of Bandhan Bank surged over 13 per cent in morning trade on Monday after the private sector firm posted a 47 per cent jump in its net profit to Rs 1,063 crore for the June 2024 quarter due to a decline in bad loans.
The stock soared 11.97 per cent to Rs 215.50 on the BSE. At the NSE, it jumped 13.35 per cent to Rs 218.20.The lender had earned a net profit of Rs 721 crore in the year-ago period.
Shares of ICICI Bank climbed nearly 3 per cent on Monday morning trade after the company posted a nearly 10 per cent increase in consolidated net profit for the June quarter.
The stock went up 2.67 per cent to Rs 1,239.95 on the BSE. At the NSE, it climbed 2.74 per cent to Rs 1,240.35.
Treasury gains helped ICICI Bank post a nearly 10 per cent increase in the consolidated net profit during the quarter at Rs 11,696 crore on Saturday.
MOFSL brokerage suggested a ‘Neutral’ rating on Bandhan Bank with a revised share price target of Rs 220 apiece.
Axis Securities raised its target price on Bandhan Bank to Rs 195 but maintained a ‘Reduce’ call on the stock.
Given the lower capital, we retain the target price at Rs 200 and ‘HOLD’ said Nuvama.
CLSA has revised upward its stock price target to Rs 240 from Rs 210 earlier.
Jefferies has hiked its target on Bandhan Bank to Rs 240.
JPMorgan set a price target of Rs 260 on the scrip.
Nomura brokerage reiterated its ‘Buy’ rating on ICICI Bank stock with an upwardly revised target price of Rs 1,420 (from Rs 1,335).
During the quarter, the bank’s total income increased to Rs 6,063 crore against Rs 4,908 crore a year ago, Bandhan Bank said in a regulatory filing on Friday.
Interest income grew to Rs 5,536 crore during the period under review from Rs 4,523 crore in the corresponding quarter a year ago.
On the asset quality side, the bank’s Gross Non-Performing Assets (NPAs) improved to 4.23 per cent of gross advances as of June 30, 2024, from 6.76 per cent in the April-June quarter of the previous fiscal.
Net NPAs also declined to 1.15 per cent of the advances from 2.18 per cent a year ago.
As a result, provisions other than tax and contingencies declined to Rs 523 crore against Rs 602 crore earmarked during the same quarter a year ago.
Growth in core income slowed for the country’s second-largest private sector lender, but the treasury operations helped it report a 14.62 per cent rise in post-tax profit at Rs 11,059 crore on a standalone basis.
The core net interest income (NII) growth came at a multi-quarter low of 7.3 per cent to Rs 19,553 crore for the reporting quarter. The NII growth was restricted majorly by over 0.40 per cent, narrowing in the net interest margin at 4.36 per cent as against the year-ago period, and a nearly 16 per cent domestic loan growth.
The non-interest income grew 23 per cent to Rs 6,389 crore, excluding the performance of the treasury operations, while the treasury gains alone more than doubled to Rs 613 crore from the year-ago period’s Rs 252 crore.
The gross non-performing assets ratio was stable at 2.36 per cent as of June 30, 2024.
(With inputs from PTI)
(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.