Bandhan Bank Shares Plunge 15% Despite Reporting 35% YoY Growth in Q1 FY27 Profit; Here's Why

On Wednesday, Indian equity benchmark indices were trading lower, with the Nifty 50 down 0.70 per cent at 24,019.15, while the Bank Nifty declined 1.00 per cent to 57,256.30. Against this backdrop, shares of Bandhan Bank fell over 15 per cent to Rs 177.21, after touching an intraday low of Rs 171.56, following the announcement of its Q1 FY27 financial results.

Bandhan Bank Q1 FY27 Financial Performance

Bandhan Bank reported a 35 per cent year-on-year increase in net profit to Rs 502 crore for the quarter ended June 30, 2026, compared with Rs 372 crore in the corresponding quarter last year. The improvement in profitability was primarily driven by a 40 per cent decline in provisions to Rs 683 crore.

Net Interest Income (NII) increased 5.9 per cent YoY to Rs 2,921 crore, while net total income rose 1.2 per cent YoY to Rs 3,524 crore. The bank's Net Interest Margin (NIM) remained stable at 6.2 per cent during the quarter. Return on Assets (RoA) stood at 1.0 per cent, while Return on Equity (RoE) came in at 7.7 per cent.

Asset Quality Improves Further

The bank continued to strengthen its asset quality during the quarter. Gross Non-Performing Assets (GNPA) declined to 3.1 per cent as of June 30, 2026, from 5.0 per cent a year earlier and 3.3 per cent in the previous quarter. Net NPA improved to 0.9 per cent, compared with 1.4 per cent in the corresponding quarter last year.

The Provision Coverage Ratio (PCR), including technical write-offs, stood at 85.9 per cent, while collection efficiency for Emerging Entrepreneurs Business (EEB) loans remained strong at 98.5 per cent.

Advances and Deposits

Bandhan Bank's gross advances increased 16 per cent YoY to Rs 1.56 lakh crore. The retail loan book, excluding housing loans, grew 45 per cent, while wholesale banking advances increased 38 per cent. The housing loan portfolio expanded 6 per cent, and secured advances rose 27 per cent, accounting for nearly 57 per cent of the overall loan book.

On the liability side, total deposits grew 6.6 per cent YoY to Rs 1.65 lakh crore. The CASA ratio remained above 29 per cent, while retail deposits, comprising CASA and retail term deposits, increased 15.6 per cent YoY to Rs 1,21,956 crore, representing 74 per cent of total deposits. CASA deposits stood at Rs 48,479 crore during the quarter.

Management Commentary

Commenting on the quarterly performance, Partha Pratim Sengupta, Managing Director and Chief Executive Officer of Bandhan Bank, said the bank's Q1 FY27 performance reflects the resilience of its franchise, the commitment of its employees and the continued trust of its stakeholders. He added that the bank remains focused on delivering customer-centric and digitally enabled growth by strengthening its distribution network, expanding its product offerings and leveraging data-driven insights. According to him, these initiatives position the bank to create greater value for customers and stakeholders while driving sustainable, balanced and future-ready growth.
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About Bandhan Bank

Bandhan Bank commenced operations as a universal bank on August 23, 2015, and has since emerged as one of India's leading private sector banks with a strong focus on financial inclusion and serving customers in semi-urban and rural markets. The bank operates through more than 6,400 banking outlets across 35 states and union territories, employs over 74,500 people, and serves a customer base of more than 3.2 crore account holders.

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Disclaimer: The article is for informational purposes only and not investment advice.