Bandhan Bank Share Price Crashes 15% Despite Strong Q1 Results; Here's What Triggered the Sell-Off

Bandhan Bank shares slumped as much as 15% in early trade on Wednesday, July 22, after the private lender lowered its FY27 return-on-assets (RoA) guidance, overshadowing an otherwise strong set of June-quarter earnings. The sharp decline came despite the bank reporting a 35% year-on-year rise in net profit, as investors focused on a weaker profitability outlook.

Bandhan Bank Share Price Today

At the time of writing (10:45 am IST), Bandhan Bank shares were trading at ₹177.35 on the NSE, down nearly 15% from the previous close of ₹208.83, valuing the lender at around ₹28,596 crore.

Wednesday's sell-off erased part of the stock's recent gains. While Bandhan Bank shares are still up more than 24% so far in 2026, they have declined around 14% over the past month and more than 17% in the last five trading sessions. Over a longer period, the stock has fallen over 41% in the last five years and around 18% over the past three years according to NSE data.

During the post-results earnings call, Bandhan Bank revised its FY27 exit RoA guidance to 1.2-1.4%, down from the earlier 1.6-1.8%, citing elevated deposit costs, higher technology investments, seasonal factors including the monsoon, and an uncertain macroeconomic environment.

Managing Director and CEO Partha Pratim Sengupta said the bank's medium-term profitability targets remain intact but will take longer to achieve because of these external headwinds.

Q1 FY27 Results at a Glance

For the April-June quarter, Bandhan Bank reported a standalone net profit of ₹501.66 crore, up 35% from ₹371.96 crore a year earlier. Net interest income (NII) increased 5.9% year-on-year to ₹2,921 crore, while gross advances rose 16.4% to ₹1,55,555 crore.

Asset quality also improved during the quarter. Gross non-performing assets (GNPA) declined to 3.1% from 4.96% a year ago, while provisions and contingencies fell 40% year-on-year to ₹682.58 crore.

Kotak Neo Research View

Despite Wednesday's sharp sell-off, Kotak Neo Research retained its BUY rating on Bandhan Bank with a fair value of ₹235.

The research note said the bank's earnings growth was largely driven by lower credit costs as provisions declined sharply, even as operating profit weakened year-on-year. It lowered its own RoA estimates following management's revised guidance and said slower margin expansion and higher operating expenses could delay a near-term re-rating of the stock.

At the same time, the report highlighted recovering loan growth, improving asset quality, stable capital adequacy and continued diversification of the loan book as positives supporting the lender's medium-term outlook.

Also Read - Bandhan Bank Q1 Net Profit Up 35% At ₹502 Cr; Shares Down 15% After Guidance Cut