Bandhan Bank's dramatic fall
Bandhan Bank reportedly plunged about 80% in market price despite continued revenue growth — a stark example of how regional crises and sector volatility can wipe out bank equity valuations . For investors, it underscores idiosyncratic tail risk in emerging‑market financials.
Bandhan reported net revenue of ₹12,490 crore and net interest income of ₹10,326 crore for FY24, with full‑year profit after tax of ₹2,229 crore. [businessworld.in] In Q4 FY24 the bank’s reported quarterly profit collapsed to ₹54.6 crore — a year‑on‑year drop of roughly 93–94% — after higher provisions and technical write‑offs, including reported technical write‑offs of ₹3,852 crore. [livemint.com] Founder Chandra Shekhar Ghosh announced his retirement effective July 9, 2024 in an April 5, 2024 filing, a leadership change that amplified investor uncertainty. [moneycontrol.com] Broker Jefferies formally downgraded Bandhan and cut its target to ₹170 from ₹290 on April 8, 2024, citing succession and management concerns. [hindustantimes.com] The bank’s deposits grew about 25% year‑on‑year to ₹1,35,202 crore as of March 31, 2024, even as reported gross NPAs improved to 3.8% in FY24 from 4.9% the prior year. [bandhan.bank.in] Regulatory developments shifted in early 2026 when the RBI cleared ICICI Prudential to acquire up to 9.95% of Bandhan (letter dated Feb 10, 2026) and, on Feb 25–26, 2026, approved SBI Mutual Fund to take up to 9.99% subject to conditions. [investywise.com] The market reaction tracked those operational and governance shocks: shares, which traded at multiyear highs in 2019, hit a fresh low near ₹128 on February 18, 2025, prompting fresh downgrades and selective buying interest thereafter. [business-standard.com] As of late‑2025 the stock traded with a market capitalisation in the vicinity of ₹300 billion and valuation metrics such as a trailing P/E and price/book around the low‑to‑mid single digits, amplifying sensitivity to further regulatory or asset‑quality news. [finance.yahoo.com]
