Bandhan Bank Posts Net Profit of 622 Crore Rupees, Up 456% Year on Year
Key Facts
Bandhan Bank reported net profit of 622 crore rupees in the second quarter of fiscal 2027, compared with 112 crore rupees in the year-earlier period, an increase of 456% year on year. The comparison marks a sharp jump from a low profit base and does not establish that the result was a record or exceeded market expectations. Net interest income rose 14% to 2,960 crore rupees from 2,589 crore rupees a year earlier, according to the bank's press release. Net total income increased 17% to 3,665 crore rupees from 3,135 crore rupees. Operating profit rose 19% to 1,556 crore rupees, compared with 1,310 crore rupees in the corresponding quarter.
The results came alongside year-on-year improvement in asset quality indicators. Gross non-performing assets stood at 3.1%, down 191 basis points year on year, while net non-performing assets reached 0.9%, down 45 basis points. On a quarterly basis, the two ratios declined by 3 basis points and 1 basis point, respectively, according to the bank's results presentation. The provision coverage ratio, including write-offs, was 86.7% as of September 30, 2026. Collection efficiency for loans to the bank's emerging entrepreneurs segment was 99.3% in the second quarter, according to the release.
Provisions were 718 crore rupees in the September quarter, down from 1,153 crore rupees a year earlier but up from 683 crore rupees in the June quarter, according to NDTV Profit. The comparison shows a year-on-year decline in the provisions burden alongside a quarterly increase. This coincided with an improvement in non-performing loan ratios from a year earlier, while provisions remained above their level in the previous quarter. The figures provide context for the sharp annual change in profit, alongside growth in interest income and operating profit. The bank did not describe earnings as a record in the results information provided.
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% from the previous quarter. Total deposits reached 1,726.9 billion rupees, up 9.2% year on year and 4.7% quarter on quarter, according to the bank's presentation. Secured loans increased to 57.3% of the loan book, up 237 basis points year on year and 42 basis points quarter on quarter. Retail deposits accounted for 72.7% of total deposits. These indicators show lending and funding growth alongside a larger share of secured loans and retail deposits in the mix.
Portfolio growth varied across the bank's businesses: the retail portfolio excluding housing rose 42% year on year, and corporate banking grew 32%. By contrast, the housing portfolio increased 4% and the emerging entrepreneurs portfolio 2% year on year through the second quarter of fiscal 2027, according to the release. The capital adequacy ratio was 18.3%, while the Common Equity Tier 1 ratio stood at 17.7%. The bank said 98% of retail transactions were conducted digitally. These figures complete the picture of business growth, funding mix and capital that the bank presented with its quarterly results.
Managing Director and Chief Executive Partha Pratim Sengupta said the bank is focused on "maintaining healthy business growth, accelerating deposit mobilisation, improving the loan portfolio mix and protecting asset quality." His remarks appeared in the release announcing the results, alongside growth in deposits and advances and year-on-year improvement in non-performing loan ratios. In trading on October 28, 2026, the bank's shares closed at 155.80 rupees, up 2.57% from the previous close of 151.90 rupees, according to Business Today. The closing data establish the price change between the two sessions but do not show that the increase occurred directly after the results announcement. The available information did not specify a date for a subsequent event.