Bandhan Bank Ltd

About Bandhan Bank Ltd

Bandhan Bank Ltd, established in 2015, is a private sector bank in India focused on inclusive banking. It primarily offers micro banking, retail, and SME loans alongside traditional banking products, catering to underserved populations. The bank operates predominantly in Eastern and Northeastern India, fostering financial inclusion and economic development.

Key Financial Ratios

• P/E Ratio (TTM): Price to Earnings ratio shows how much an investor pays for every rupee of the company's earnings. Bandhan Bank Ltd's P/E ratio (TTM) is 23.14, compared to the industry median of 12.00 and large cap median of 10.01.

• P/B Ratio: Price to Book ratio compares a company's market price to its book value per share. Bandhan Bank Ltd's P/B ratio is 1.12, compared to the industry median of 1.22 and large cap median of 1.06.

• P/S Ratio: Price to Sales ratio compares a company's market value to its total revenue. Bandhan Bank Ltd's P/S ratio is 1.30, compared to the industry median of 1.65 and large cap median of 1.29.

• PEG Ratio: PEG ratio adjusts the P/E ratio for expected earnings growth. Bandhan Bank Ltd's PEG ratio is -2.08.

• EV/EBITDA Ratio: This ratio compares a company's enterprise value to its earnings before interest, tax, depreciation, and amortization. Bandhan Bank Ltd's EV/EBITDA ratio is 2.34.

• Return on Equity (ROE): ROE measures how much profit a company generates from shareholders' invested capital. Bandhan Bank Ltd's ROE is 4.85%.

• Return on Assets (ROA): ROA measures how efficiently a company converts its assets into net profit. Bandhan Bank Ltd's ROA is -0.47%.

• Return on Capital Employed (ROCE): ROCE measures how efficiently a company generates profit from all the capital it employs. Bandhan Bank Ltd's ROCE is 49.86%.

• Operating Margin: Operating margin shows what percentage of revenue remains after covering operating expenses. Bandhan Bank Ltd's operating margin is -4.61%.

• Net Margin: Net margin shows what percentage of revenue converts into final net profit. Bandhan Bank Ltd's net margin is 5.64%.

• Current Ratio: The current ratio measures a company's ability to pay short-term liabilities using short-term assets. Bandhan Bank Ltd's current ratio is 32.77.

• Debt to Equity Ratio: This ratio shows the proportion of debt a company uses relative to shareholders' equity. Bandhan Bank Ltd's debt-to-equity ratio is 6.69.

• Interest Coverage Ratio: This ratio shows how easily a company can pay interest on its outstanding debt from its operating earnings. Bandhan Bank Ltd's interest coverage ratio is 1.16.

• Dividend Per Share (DPS): DPS shows the total dividend paid per share in the latest financial year. Bandhan Bank Ltd's DPS is ₹1.52.

• Earnings Per Share (EPS): EPS shows how much profit is allocated to each outstanding share. Bandhan Bank Ltd's EPS is -55.40.

(Source line: "Ratios as of 13 Aug 2026, based on last traded price of ₹175.90. Data sourced from BSE/NSE Exchange Filings & Public Terminal Data.")

Key Facts

• Founded: 2015 (as Bandhan Financial Services Limited)
• Headquarters: Kolkata, West Bengal
• Core Offerings: Micro Banking Loans, Retail Loans, SME Banking, Deposits, Treasury Operations
• Stock Listing: NSE (BANDHANBNK), BSE (541153)
• Promoter: Bandhan Financial Holdings Limited

History of Bandhan Bank Ltd

['2001: Founded as Bandhan, an NGO working for financial inclusion.', '2006: Transformed into a Non-Banking Financial Company (NBFC) – Bandhan Financial Services Limited (BFSL).', "2014: Received an 'in-principle' approval from the RBI to set up a universal bank.", 'August 23, 2015: Commenced operations as Bandhan Bank, a scheduled commercial bank.', '2018: Successfully launched its Initial Public Offering (IPO).', "2019: Completed the acquisition of Gruh Finance, HDFC's affordable housing finance subsidiary."]

Business Segments and Revenue Mix

• Retail Banking (including Micro Banking): The largest segment, focusing on providing credit and other banking services to individuals and small businesses, particularly through microfinance and small retail loans. It also includes general retail products like housing loans, personal loans, and vehicle loans.
• Wholesale Banking: Caters to large corporations and mid-sized businesses, offering working capital, term loans, and other financial services.
• Treasury: Manages the bank's investment portfolio, liquidity, and asset-liability management, including investments in government securities and other money market instruments.

Key Personnel

Chandra Shekhar Ghosh (MD & CEO): Founder of Bandhan, he spearheaded its transformation from an NGO to a leading microfinance institution and eventually to a universal bank. Anup Kumar Sinha (Independent Part-time Chairman): A veteran banker with extensive experience in the Indian financial sector, previously serving as a Deputy Governor at the Reserve Bank of India.

Subsidiaries and Associate Companies

• Bandhan Financial Services Limited (BFSL): A wholly-owned subsidiary involved in microfinance activities.
• Bandhan Asset Management Company Limited: Offers mutual fund products.
• Bandhan Capital Limited: Engaged in stockbroking and wealth management services.

Corporate Actions

In 2018, Bandhan Bank successfully launched its Initial Public Offering (IPO). A significant corporate action was the merger of GRUH Finance Ltd. with Bandhan Bank, completed in October 2019, which diversified its asset portfolio, particularly into affordable housing finance. No major recent bonus or rights issues on record.

References

1. Bandhan Bank Annual Report FY2023 2. Exchange Filings (NSE/BSE) 3. Bandhan Bank Investor Presentations 4. Financial News Portals (Moneycontrol, Livemint)