Shares of Bandhan Bank Ltd slipped nearly 3% to ₹182.04 in early trade today after the lender posted disappointing financial results for Q1 FY26. The stock fell by ₹4.98 from its previous close of ₹187.02, with a day’s range between ₹178.70 and ₹184.23.
The bank reported a net profit of ₹372 crore for the quarter ended June 30, 2025, marking a steep 65% drop from ₹1,063 crore in Q1 FY25. Despite total income inching up to ₹6,201.49 crore from ₹6,081.73 crore a year earlier, profitability was dented by higher provisions and deteriorating asset quality.
Net Interest Income (NII) declined 8% YoY to ₹2,748 crore, with Net Interest Margin (NIM) at 6.4%, down from last year. Operating profit also fell to ₹1,668 crore compared to ₹1,941 crore in Q1 FY25.
The bank’s gross non-performing asset (GNPA) ratio rose to 5.0%, up from 4.2%, and net NPA climbed to 1.4%, from 1.1%. Provisions and contingencies surged to ₹1,147 crore from ₹523 crore last year, as elevated slippages and stress in the microfinance portfolio persisted.
On the business front, deposits grew 16% YoY to ₹1.55 lakh crore, with retail deposits comprising 68% of the total. Gross advances grew 6% to ₹1.34 lakh crore, and the share of secured loans increased to over 52% of the loan book.
The capital adequacy ratio stood at a healthy 19.4%, and return on assets (RoA) for the quarter was 0.20%.
Managing Director & CEO Partha Pratim Sengupta acknowledged the challenging environment but said the bank remains focused on strengthening its risk management and improving collections.
