Bendigo and Adelaide Bank's (ASX:BEN) deal to acquire Racq Bank's retail lending assets and deposits for a purchase price to be based on the book value of the transferring book at completion, is relatively financially immaterial but strategically "on par," according to a Thursday note by Jarden.

The deal is expected to lift BEN's return on equity by 35 to 40 basis points and add AU$0.04 to AU$0.05 per share to cash earnings, Jarden noted.

The acquisition fits well with the company's goal of minimizing costs, optimizing its deposit base with retail deposits, and gaining greater presence in agriculture, Jarden said.

However, Jarden expects the bank to incur a fine for the lack of improvement after Deloitte detected deficiencies across the Bank's entire branch network.

Jarden also expects inflation and regulatory scrutiny to drive costs.

The firm maintained Bendigo and Adelaide Bank's neutral rating and its AU$11 price target.

Shares of the bank rose 1% in recent Friday trade.