Bandhan Bank profit jumps 455.7% to 622 crore rupees in second quarter
Key Facts
Bandhan Bank reported net profit after tax of 622 crore rupees in the second quarter of fiscal 2027, up 455.7% year on year, according to the bank’s results presentation. Profit was 112 crore rupees in the year-earlier quarter and rose 23.9% from the previous quarter. The jump coincided with higher net interest income and operating revenue, and improved year-on-year asset-quality indicators. The results also showed different growth rates across the loan book and funding, with total advances rising faster than deposits. Chief Executive Partha Pratim Sengupta said the bank is focused on business growth, deposit mobilisation, improving its loan mix, protecting asset quality and strengthening profitability.
Net interest income was 29.6 billion rupees, up 14.4% year on year and 1.4% quarter on quarter, according to the bank’s presentation. Net total income rose 16.9% to 36.7 billion rupees, while operating profit increased 18.8% to 15.6 billion rupees; the two measures grew 4% and 14.6% quarter on quarter, respectively. By contrast, net interest margin was 6.1%, up 30 basis points from a year earlier but down 9 basis points from the previous quarter. This puts growth in interest income and operating profit alongside a quarterly contraction in the margin. These comparisons remain tied to the year and quarter periods stated in the results presentation.
Bad-loan ratios improved from a year earlier, with gross non-performing assets at 3.1% of total loans, down 191 basis points year on year and 3 basis points quarter on quarter. Net non-performing assets were 0.9%, down 45 basis points year on year and 1 basis point quarter on quarter, the bank said. At the same time, the share of secured loans rose to 57.3% of advances as of September 30, 2026. That share increased 237 basis points from a year earlier and 42 basis points from the previous quarter. Together, the asset-quality and portfolio-composition indicators show lower delinquency ratios and a greater weight of secured loans over the two comparison periods.
On the balance sheet, total advances stood at 1,583.7 billion rupees as of September 30, 2026, up 13.1% year on year and 1.8% quarter on quarter. Deposits reached 1,726.9 billion rupees, up 9.2% year on year and 4.7% quarter on quarter, according to the results presentation. Advances therefore grew faster than deposits year on year, while the quarterly increase in deposits exceeded the rise in advances. Retail deposits accounted for 72.7% of total deposits in the second quarter. The current and savings account ratio was 26.7%, with balances in those accounts of 46,132 crore rupees, according to the bank’s investor-relations data.
Business growth varied by portfolio during the second quarter of fiscal 2027. The retail portfolio excluding housing grew 42% year on year, while wholesale banking rose 32%, according to the results statement republished by Equity Bulls. By contrast, the housing portfolio increased 4% and the emerging entrepreneurs business portfolio grew 2% year on year. The bank said 98% of retail transactions were conducted digitally and 93% of savings accounts were opened digitally during the quarter. These indicators show differing growth across lending segments alongside the spread of digital channels for transactions and account opening.
In his message to investors, Sengupta said priorities include “sustaining healthy business growth, accelerating deposit mobilisation, improving the composition of the loan portfolio, protecting asset quality and steadily strengthening profitability.” Deposit mobilisation is among those priorities after deposits rose 9.2% year on year, compared with 13.1% growth in advances, while retail deposits accounted for 72.7%. The bank also referred to its loan mix as secured loans reached 57.3% of advances after their share increased year on year and quarter on quarter. These statements present management’s objectives as given in the presentation, without specifying a future timeline in the available facts. The bank’s shares closed at 155.80 rupees on October 28, 2026, up 2.57% from the previous session’s close of 151.90 rupees, according to Business Today. The results were announced after the market close, so the share movement reflects that day’s session and does not represent a subsequent response to the results announcement.