Shares of private sector lender Bandhan Bank experienced a significant downturn, plummeting 19% in just two trading sessions to reach a fresh four-month low of Rs 169.25 on July 23, 2026. The stock, which traded at Rs 208.60 on July 21, has now seen a continuous decline for six consecutive days. The last time Bandhan Bank shares traded below the Rs 169 mark was on April 24, 2026, when they touched Rs 168.80.
Technical Indicators Signal Weakness
The sharp fall has pushed Bandhan Bank shares below their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages, indicating strong bearish momentum. The stock's Relative Strength Index (RSI) stood at 30.6, approaching the oversold zone (typically below 30), suggesting potential for a technical bounce but reflecting current market sentiment. Despite this recent slump, the stock had gained 18% in 2026 and 14% over the preceding six months.
As of the current session, 24.44 lakh shares changed hands, amounting to a turnover of Rs 41.80 crore. The bank's market capitalization has fallen to Rs 27,348 crore. The 52-week high for the stock was Rs 220.70 on July 15, 2026, while its 52-week low was Rs 134.30 on December 9, 2025.
Q1 Earnings and Outlook Revision Drive Decline
While the lender's Q1 earnings reportedly beat estimates, the significant share price drop was primarily triggered by Bandhan Bank's decision to lower its Return-on-Assets (RoA) outlook for FY27. The bank cut its 4QFY27 RoA guidance by 40 basis points, revising it to 1.2-1.4% from an earlier projection of 1.6-1.8%.
This revised outlook is attributed to external factors, including:
- Moderation in Net Interest Margin (NIM): A 30 bps impact on RoA stems from a revised NIM outlook (from 6.5% to a 1Q level of 6.2%). This is due to tighter liquidity conditions and elevated funding costs in the market.
- Elevated Operating Expenses: A 10 bps impact on RoA is due to increased operating expenses (from 4.2% to a 1Q level of 4.3%), particularly driven by rising technology-related costs.
Analyst Views and Price Targets
Brokerages have offered mixed reactions following the bank's announcements:
Axis Securities maintained a 'Buy' call on Bandhan Bank, assigning a revised price target of Rs 235, up from Rs 205 per share. The brokerage highlighted that asset quality was a positive aspect during the quarter, with encouraging trends despite typical seasonal weakness in Q1. Axis Securities noted that management anticipates a sustained, gradual improvement in credit costs and reiterated its credit cost guidance of 1.6-1.8% for FY27.
Conversely, Nuvama downgraded Bandhan Bank stock to 'Hold' from 'Buy', revising its target price downwards to Rs 230 from Rs 250. Nuvama believes that while the bank's Microfinance Institution (MFI) recovery and normalizing credit costs remain on track, higher funding costs, partly due to the West-Asia conflict, and an ongoing portfolio shift towards secured retail and corporate lending are likely to pressure margins. This is expected despite improving long-term risk-adjusted returns. Consequently, Nuvama has cut its FY27–29E earnings estimates by 11–14%, projecting a gradual RoA trajectory of 1.2%/1.4%/1.6% over FY27E/28E/29E.