Goldman Sachs maintained its ‘buy’ rating on Bandhan Bank, stating that the West Bengal election manifesto promises development and does not propose any waiver for micro-borrowers, which comes as a relief for the bank.

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The brokerage firm has set a price target of Rs 484 for the stock, nearly 34 percent higher than its current market price.

The firm also states that robust profitability and diversification of revenue stream would help in addressing the asset quality better for the firm.

The West Bengal election will be held in eight phases, starting from March 27. The final round of polling will be on April 29. The results will be out on May 2. The state accounts for 47 percent of Bandhan Bank’s microfinance portfolio.

A few days ago, the Kolkata-based lender appointed Subrata Dutta Gupta (former International Finance Corporation executive) and Suhail Chander (former IndusInd Bank executive) to its board. They have joined the Bandhan Bank board as additional independent directors. In the next annual general meeting, after approval from the bank’s shareholders, the duo will become independent directors.