Bandhan Bank reported a 34.8% increase in net profit for the first quarter of FY27, reaching ₹501.6 crore, supported by lower loan loss provisions. The bank saw a 16% growth in gross advances, though the stock fell 1.3% following the results. Investors are now tracking the bank's progress in improving asset quality and managing its deposit base.
Detailed Coverage
Bandhan Bank Ltd. posted a net profit of ₹501.6 crore for the quarter ended June 30, 2026, marking a 34.8% increase compared to the ₹372 crore profit recorded in the same quarter last year. The earnings improvement was largely supported by a significant reduction in money set aside for bad loans, known as provisions, which fell to ₹682.5 crore from ₹1,147 crore in the year-ago period.
The bank reported a net interest income—the difference between interest earned on loans and interest paid on deposits—of ₹2,921 crore, up 6% year-on-year. The net interest margin, a key indicator of profitability from lending activities, remained stable at 6.2%.
Asset Quality and Loan Book Growth
Asset quality indicators showed sequential improvement. The gross non-performing assets ratio, which measures the proportion of bad loans, stood at 3.15% in the first quarter, down from 3.27% in the previous quarter. Similarly, the net non-performing assets ratio decreased to 0.93% from 0.97%.
On the business front, gross advances rose 16% year-on-year to reach ₹1.56 lakh crore. The bank’s strategy to pivot toward secured lending is reflected in the 27% growth in its secured advances, which now account for approximately 57% of the total loan book. Additionally, the retail book—excluding housing loans—saw a sharp 45% expansion, while wholesale banking advances grew by 38%. The housing loan portfolio experienced a more modest growth of 6%.
Deposit Trends and Market Reaction
Total deposits grew 7% year-on-year, reaching ₹1.65 lakh crore. The bank has been focusing on retail deposits, which include current account savings account (CASA) funds and retail term deposits. These now make up 74% of the total deposit base. The CASA ratio, which indicates the portion of deposits in low-cost savings and current accounts, was maintained above 29%, with total CASA deposits at ₹48,479 crore.
Despite the growth in profit and advances, the bank's stock price on the BSE closed at ₹208.60, down 1.30% for the day. Investors typically watch how loan growth translates into long-term profitability and whether the bank can continue to maintain its asset quality in the face of shifting economic conditions.
The key monitorables for the coming quarters will be the bank's ability to sustain margin levels amid competitive interest rates and its progress in scaling its retail deposit base to support further credit expansion.