Customer additions to support Bandhan Bank's near-term growth; stock up 6%

Net interest income in Q2 surged 55%; profit jumped 47%

After being under pressure recently, shares of Bandhan Bank (Bandhan) have seen some recovery this week, following the management's optimistic views on growth after restrictions over branch expansion by the Reserve Bank of India (RBI). Good results for September quarter (Q2) have added to gains, with the stock surging 6 per cent on Wednesday. 

Analysts, thus, now believe Bandhan’s short-term growth may not get impacted much due to restrictions on branch expansion, given the bank's ability to add customers. If Bandhan does live up to expectations, its investors too will benefit.

A 64 per cent year-on-year (YoY) rise in loan book to