Bandhan Bank Shares Rise Around 2% After September Quarter Profit Jumps More Than Fivefold To ₹622 Crore On Lower Provisions

Bandhan Bank shares rose around 2% on 29 October after the private sector lender reported a sharp increase in September-quarter profit. Net profit climbed to ₹622 crore, supported by lower provisions and an improvement in asset quality.

Bandhan Bank’s Q2 FY27 profit was more than five times the ₹112 crore reported in the corresponding quarter last year. Provisions and contingencies charged to the profit and loss account fell 38% year on year to ₹718 crore from ₹1,153 crore.

The Kolkata-headquartered lender also reported an improvement in bad-loan ratios as conditions in the unsecured lending market recovered. Gross non-performing assets (GNPA) declined to 3.11% of advances at the end of September, compared with 5.02% a year earlier.

At 12:14 PM, Bandhan Bank’s share price on the National Stock Exchange stood at ₹157.56, up 1.42% from the previous day’s closing. The stock touched an intraday high of ₹158.93.

Bandhan Bank Reports Best Profit In Eight Quarters

Managing director Partha Pratim Sengupta said the bank had recorded its highest profit in eight quarters. He attributed the improvement to steady growth and a shift towards a more diversified loan portfolio.

Pre-provision operating profit (PPOP) increased 19% to ₹1,556 crore in the September quarter from ₹1,310 crore a year earlier. The rise came alongside lower credit costs, which helped the lender retain more of its operating earnings as net profit.

The recovery in unsecured lending also supported asset quality. This segment accounted for about a third of Bandhan Bank’s total loan portfolio, making the improvement in repayment conditions an important factor in its results.

Net Interest Income Rises 14%, Margins Improve

Bandhan Bank’s net interest income (NII), or the difference between interest earned on loans and interest paid on deposits, rose 14% year on year to ₹2,960 crore.

Net interest margin (NIM) improved to 6.1% from 5.8% in the same quarter last year. Total income increased 9.5% to ₹3,458 crore.

The rise in NII and the improvement in margins added to the benefit from lower provisions, helping drive the sharp increase in quarterly earnings.

Loans Grow 13%, Deposits Rise 9%

Gross advances stood at ₹1.58 lakh crore at the end of September, up 13% from a year earlier. Deposits increased at a slower pace of 9% to ₹1.73 lakh crore.

The latest results show an improvement in profitability alongside lower bad-loan ratios and reduced provisions. Investors will continue to track whether the bank can sustain these gains while expanding its loan book and maintaining asset quality.

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