Bandhan Bank reported a 35% year-on-year increase in net profit to ₹502 crore for the quarter ended June 30, 2026, driven by a significant drop in provisions and growth in net interest income. The bank's Board of Directors approved the unaudited financial results for Q1FY27 at its meeting held on July 21, 2026. Total income from operations for the quarter stood at ₹6,234.38 crore compared to ₹6,201.49 crore in the same period last year. Asset quality showed improvement both sequentially and annually, with Gross NPA declining to 3.1% from 3.27% QoQ and Net NPA improving to 0.9% from 0.97% QoQ, though fresh slippages edged higher to ₹10.8B from ₹10.3B on a sequential basis.

The bank's net interest income (NII) grew 5.9% YoY to ₹2,921 crore, while net interest margin (NIM) remained stable at 6.2%. Total deposits stood at ₹1.65 lakh crore, registering a 6.6% YoY growth, whereas gross advances increased 16.4% YoY to ₹1.56 lakh crore. The provision coverage ratio, including technical write-offs, was 85.9% as of June 30, 2026. The bank's total business reached ₹3.20 lakh crore, registering an 11.2% YoY growth.

Key Financial Metrics

The table below summarises Bandhan Bank's key financial performance indicators for Q1FY27 compared to Q1FY26:

Asset Quality

Sequential asset quality trends, including the latest slippage data, are presented below:

While headline NPA ratios improved on both a sequential and annual basis, fresh slippages increased to ₹10.8B from ₹10.3B QoQ, indicating a modest uptick in new stress formation during the quarter. The provision coverage ratio, including technical write-offs, stood at 85.9% as of June 30, 2026, reflecting the bank's continued focus on maintaining adequate buffers against credit risk.

Management Guidance Update

In its post-results concall, Bandhan Bank revised its Q4 FY27 return on assets (ROA) guidance downward to a range of 1.2% to 1.4%, from the earlier aspiration of 1.6% to 1.8%. Management attributed the revision primarily to external factors rather than internal issues. Key external factors cited include elevated funding costs, rising technology-related expenditures, ongoing geopolitical developments in the Middle East, and unpredictable monsoon patterns.

The key components of the revised guidance are summarised below:

Management clarified that the 40 basis point reduction in ROA guidance is attributed to a roughly 30 basis point stretch on NIMs and about 10 basis point stretch on operating expenses. The credit cost guidance of 1.6% to 1.8% remains unchanged. Future ROA improvement is expected to come from further uptake in other income (10–20 bps) and continued, albeit marginal, improvement in credit costs, as NIMs are expected to remain broadly stable at 6.2% due to funding cost pressures. Management also noted that the medium-term strategic objective to achieve the earlier ROA guidance remains unchanged, but the prevailing external environment may extend the timeline for its realization.

Brokerage Views

Following the Q1FY27 results, brokerages have delivered a mixed set of ratings on Bandhan Bank, with diverging views on the bank's near-term earnings trajectory and valuation. The key ratings and target prices are summarised below:

CLSA maintained its Outperform rating with a target price of ₹235, noting that asset quality and NIM remained strong despite a PAT miss, while management's lower FY27 RoA guidance was broadly in line with CLSA's own expectations, though it is likely to weigh on market sentiment. Jefferies retained its Buy rating with a target price of ₹240, highlighting that Q1 earnings beat on the back of stronger loan growth, fees, and microfinance institution (MFI) asset quality, and that the lower FY27 RoA guidance reflects what the brokerage views as temporary funding cost pressures, with attractive valuations limiting downside.

JPMorgan maintained a Neutral stance with a target price of ₹175, citing cuts to FY27 RoA and loan growth guidance driven by higher funding costs, rising technology operating expenditure, tighter liquidity conditions, and broader macro headwinds, despite a stable Q1 performance. Nomura also retained a Neutral rating with a target price of ₹190, acknowledging that the Q1 PAT beat estimates on strong NII and lower credit costs, but flagging that the sharp cut to FY27 RoA guidance—amid NIM pressure, higher funding costs, and elevated technology expenses—has led to earnings per share (EPS) cuts.

Management and Governance Updates

The Board approved the appointment of Mr. Vinay Jain as the Interim Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), effective September 26, 2026, until March 31, 2027. He succeeds Mr. Rajeev Mantri, who is resigning effective September 25, 2026. Additionally, the Board extended the term of Mr. Prakash E as the Chief of Internal Vigilance on an interim basis up to September 30, 2026, or until a new CIV joins.

The Board also fixed Monday, August 24, 2026, as the date for the 12th Annual General Meeting (AGM), to be held via video-conferencing. The record date for the purpose of dividend has been fixed as Monday, August 17, 2026. The trading window for designated persons will reopen 48 hours after the declaration of these financial results.

Bandhan Bank has expressed confidence in its growth trajectory, with the bank expecting better performance in upcoming quarters, improved Gross NPA, and lower slippages, according to an interview with ET. This optimistic outlook coincides with a fresh round of block trade activity recorded on the National Stock Exchange (NSE), adding to previously reported trades at a higher price point.

Management Outlook

In an interview with ET, Bandhan Bank's management indicated expectations of better asset quality going forward, citing anticipated improvements in Gross NPA levels and a reduction in slippages. The bank expressed confidence about its overall growth prospects in the quarters ahead.

NSE Block Trade Activity

Separately, two new block trades were recorded for Bandhan Bank on the NSE, both executed at prices close to Rs. 178 per share. The details of these latest transactions are as follows:

These latest trades follow five earlier block trades that were executed at a uniform price of Rs. 187.95 per share on the NSE. The details of those prior transactions are summarised below:

Earlier Block Trade Overview

Among the five earlier trades, the largest transaction involved approximately 13,508,198 shares amounting to Rs. 253.89 crores. The second trade covered approximately 4,002,885 shares valued at Rs. 75.23 crores, while the third comprised approximately 1,265,242 shares worth Rs. 23.78 crores. Two additional trades were also recorded — one involving approximately 1,521,863 shares valued at Rs. 28.60 crores, and another comprising approximately 1,064,244 shares worth Rs. 20.00 crores. The consistent execution price of Rs. 187.95 per share across all five trades was a notable feature of that earlier block trade activity.