Bandhan Bank’s shares slipped more than 5% in early trade today after the lender reported a sharp decline in profitability for the quarter ended September 30, 2025 (Q2 FY26). The bank’s net profit dropped nearly 88% year-on-year (YoY) to Rs 111.9 crore, compared to Rs 937.4 crore in the same period last year. Sequentially, profit also fell from Rs 371.96 crore in Q1 FY26, reflecting continued pressure on margins and rising provisioning costs.
Despite steady income growth, higher operating expenses and provisions dented earnings. Total income for the quarter came in at Rs 5,090 crore, slightly higher than Rs 4,949.8 crore in Q2 FY25, supported by an increase in interest income, which rose to Rs 5,335 crore.
However, operating expenses climbed to Rs 1,824 crore, while provisions and contingencies surged to Rs 1,155 crore, leading to a steep fall in net profit.
In terms of asset quality, stress remained elevated. The bank’s Gross Non-Performing Assets (GNPA) ratio stood at 5.02%, up from 4.68% in the same quarter last year — an increase of 34 basis points (bps). The Net NPA (NNPA) ratio was 1.37%, nearly flat compared to 1.29% a year ago.
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