Whalesbook
SBI Mutual Fund Boosts Bandhan Bank Stake
SBI Mutual Fund has increased its ownership in Bandhan Bank to over 5% of the lender's total shares. On May 20, 2026, the fund bought an extra 1,698,478 shares. This brings SBI Mutual Fund's total holdings across its various investment plans to 81,246,734 shares, which is 5.0432% of Bandhan Bank's outstanding equity. The purchases were made on the open market, reflecting growing institutional confidence in the bank's future performance.
Stock Performance and Valuation Metrics
Bandhan Bank's share price saw a small increase following news of the stake acquisition. The stock closed at ₹192.2 on May 20 and was trading around ₹193.80 by Friday's market close, up about 1.39%. As of May 21, 2026, Bandhan Bank's market capitalization was valued at approximately ₹30,794 crore. The bank's Price-to-Earnings (P/E) ratio is about 25.15, and its Price-to-Book (P/B) ratio is around 1.22. Compared to the banking industry's average P/E of 13.08, Bandhan Bank's shares trade at a higher valuation, indicating investor expectations for stronger future earnings growth. While the stock has returned about 13.59% in the past year, it has seen a -19.7% return over the last three years.
Analyst Views and Competition
Bandhan Bank faces competition from other banks such as AU Bank, Axis Bank, and City Union Bank. Analysts generally hold a positive to mixed view on the bank's stock. In early May 2026, two Wall Street analysts rated it a 'Moderate Buy' with an average 12-month price target of ₹186.00, which is slightly below current trading levels. Another set of 24 analysts provided a consensus 'Buy' rating and an average price target of ₹188.67, implying a minor potential downside of -1.26%. However, some analysts have set higher targets, with projections reaching ₹225, dependent on market trends and sector performance.
Regulatory Approval and Growth Strategy
The Reserve Bank of India (RBI) has previously authorized SBI Mutual Fund to acquire up to 9.99% of Bandhan Bank's share capital, meaning the current stake is well within the approved limit. Bandhan Bank is expanding its loan distribution geographically, with 55% of its outlets now located outside its traditional eastern base, as it aims for a national presence. The bank reported a significant 68% year-over-year increase in net profit for Q4FY26, reaching ₹534 crore, alongside an expansion of its Net Interest Margins (NIMs) to 6.2%. Management has expressed optimism for the future, targeting a Return on Assets (ROA) between 1.6% and 1.7% by the end of FY27 and projecting 15% growth in FY27. In recent management changes, Mr. Sandip Kumar Bubna was appointed Interim Chief Audit Executive following a resignation.