ICICI Securities Recommends 'BUY' on Bandhan Bank; Sets Target at INR 175

• Bandhan Bank reported subdued Q3FY26 PAT of INR 2.1 billion due to elevated provisioning, despite significant improvement in gross NPA.
• Microfinance disbursements increased QoQ and YoY, but the portfolio contracted by 3% QoQ after a massive ARC sale.
• NIM improved by 10 bps to 5.9% QoQ, aided by better LDR and CRR benefits, while GNPA improved sharply by 32% QoQ.
• The bank's secured book share increased to 57% (from 49% YoY), indicating substantial progress in portfolio mix change.
• ICICI Securities upgrades Bandhan Bank to 'BUY' from 'Hold' with an unchanged target price of INR 175, anticipating improved RoA.

Why It Matters: ICICI Securities upgrades Bandhan Bank to 'BUY' with a target of INR 175, citing improving asset quality and RoA.