Asset quality worries weigh on Bandhan Bank's stock as NPAs spike

Analysts have 'neutral' to 'buy' recommendation on the share with target price ranging between Rs 320 and Rs 440, it closed at Rs 273 on Monday

The market responded negatively to Bandhan Bank’s results. Despite a jump in earnings, the bank had deteriorating asset quality and higher NPAs (non-performing assets). The profit after tax (PAT) was at Rs 886 crore, up 140 per cent year-on-year (YoY) but down 53 per cent quarter-on-quarter (QoQ). 

Interest income, at Rs 4,055 crore, was up 5 per cent QoQ and up 19 per cent YoY. Other income was down 66 per cent, QoQ, at Rs 330 crore. Net interest income was down 1 per cent and up 19 per cent YoY at Rs 2,514 crore. Net interest margin is close