Bandhan Bank shares fall 6% after Q2 PAT plunges 88% YoY to Rs 110 crore

Synopsis

Bandhan Bank shares dropped nearly 6% after the lender reported an 88% year-on-year fall in Q2FY26 profit to Rs 110 crore. Weak net interest income, lower margins, and rising credit costs weighed on earnings, even as advances and deposits grew. Asset quality slightly deteriorated, with GNPA rising to 5% and NIM slipping to 5.8%.

Bandhan Bank shares fell 5.9% to an intraday low of Rs 160.40 on BSE on Friday, October 31, after the private sector lender reported a sharp decline in earnings for the July-September quarter of FY26.

The bank posted a net profit (PAT) of Rs 110 crore, down 88.1% year-on-year (YoY) and 69.9% sequentially.

Net interest income (NII) stood at Rs 2,590 crore, down 11.8% YoY and 6.1% quarter-on-quarter (QoQ), while total net revenue came in at Rs 3,140 crore, a decline of 11.5% YoY and 10.0% QoQ.

Operating profit fell to Rs 1,310 crore, marking a 29.4% YoY and 21.5% sequential drop.

Gross advances rose 7.2% YoY and 4.8% QoQ to Rs 1,40,040 crore. The share of the secured book improved to 54.9%, up 790 basis points (bps) YoY and 278 bps QoQ.

Total deposits increased 10.9% YoY and 2.2% QoQ to Rs 1,58,070 crore, while retail deposits climbed 16.1% YoY and 6.3% QoQ to Rs 1,12,130 crore. The CASA ratio stood at 28%, down 521 bps YoY but up 90 bps QoQ. Deposits from non-East regions accounted for 45.5%, slightly lower YoY but higher sequentially.

On asset quality, the gross non-performing assets (GNPA) ratio rose to 5%, up 34 bps YoY and 5 bps QoQ, while the net NPA (NNPA) ratio inched up to 1.4%. The provision coverage ratio (PCR) improved to 73.7%.

Credit cost stood at 3.4%, up 144 bps YoY but down 9 bps QoQ. The net interest margin (NIM) declined to 5.8%, lower by 152 bps YoY and 55 bps QoQ.

Return ratios remained weak, ROA fell to 0.2%, while ROE dropped sharply to 1.8%.

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