Bandhan Bank Shares Jump: What’s Fueling the Rally?

June 9, 2025: Once hailed as one of India’s most promising banking startups, Bandhan Bank has been on a rollercoaster journey — from explosive growth in its early years to a prolonged period of underperformance. But recent price action hints at a possible resurgence, sparking fresh interest among retail and institutional investors alike.

On June 9, 2025, Bandhan Bank closed at ₹186.2, marking an impressive 6.71% gain in a single day. That wasn’t a one-off spike — the stock has surged over 23% in the last three months and more than 16% in the past month, outperforming many of its midcap and even large-cap peers in the private banking sector.

So, what’s changed?

Momentum Builds, But Caution Lingers

Technically, Bandhan is trading above all major moving averages, from the short 5-day to the long 200-day marks — an encouraging sign for short-term traders. With intraday highs brushing against ₹186.35 and technical resistance levels now being challenged, bulls seem to be back in control.

However, the long-term picture tells a different story.

Despite the recent surge, the stock is still down over 5% year-on-year. Zoom out further, and the cracks widen — a 43% drop over three years and a 29% decline over five. In stark contrast, peer HDFC Bank has posted a 95% gain over the same five-year period.

This divergence raises a crucial question for investors: Is Bandhan’s current rally a genuine recovery — or just a technical rebound?

Investor Sentiment and Sector Dynamics

Bandhan Bank operates in a space where investor expectations are high and competition is fierce. Once favored for its strong rural lending model, the bank has faced challenges with asset quality and regional exposure. Recent policy tailwinds, improved macroeconomic sentiment, and rate stability may be fueling this current upward move.

Yet, seasoned investors know that momentum without fundamental backing can fade fast. For Bandhan to sustain this rally and regain its place among India’s top private banks, it must back up the price action with consistent earnings, stable NPA figures, and strong credit growth.

Conclusion: Hope with a Hint of Caution

The recent performance of Bandhan Bank is encouraging. It’s the kind of surge that catches eyes and headlines. But for long-term investors, this may be a time to observe carefully rather than celebrate prematurely. There’s promise — but also a past that’s yet to be fully resolved.

The next few quarters will be crucial. If Bandhan can turn momentum into meaningful growth, this might just be the comeback story the market has been waiting for.