Bandhan Bank Q2 Profit Rises 456%, Shares Gain 2.3%

Bandhan Bank's filing shows a ₹620 crore profit after tax, a 23.9% rise from the ₹500 crore posted in Q1 and a staggering 456.7% jump from ₹110 crore last year. The bank's earnings beat consensus estimates of ₹520 crore, pushing the share price up 2.3% to ₹155.36.

Net interest income climbed to ₹2,960 crore, up 14.4% YoY versus ₹2,590 crore and a modest 1.4% QoQ jump from ₹2,920 crore. Pre‑provisional operating profit hit ₹1,560 crore, up 14.6% QoQ and 18.8% YoY, reflecting tighter cost controls.

Gross advances stood at ₹1.58 lakh crore, up 1.8% QoQ and 13.1% YoY from ₹1.4 lakh crore. Deposits grew to ₹1.72 lakh crore, a 4.7% QoQ increase and 9.2% YoY rise. Provisions rose 5.1% QoQ to ₹720 crore but fell 37.7% YoY. Net interest margin contracted to 6.1% from 6.2% QoQ, yet it remains 30 bps above last year’s 5.8%.

Gross NPA settled at 3.1%—unchanged from the prior quarter but down 191 bps from 5% a year ago—while net NPA held at 0.9%, 45 bps lower YoY. CASA shrank to 26.7% from 29.4%, a 269‑bp slide, signalling fresh slippages.

MD‑CEO Partha Pratim Sengupta said the bank will keep its 14% loan‑growth guidance for FY27 and expects emerging‑entrepreneur business to grow 8‑10% in H2. The team projects a NIM of 6.1‑6.2% and ROA of 1.2‑1.4% by Q4, with a medium‑term target of 1.6‑1.8%. Sengupta warned that IRDAI’s proposed distribution changes could bite ₹200 crore from third‑party income, but the bank plans to shift focus to other channels.

Overall, Bandhan Bank's earnings surge and solid asset quality bolster investor confidence, though the narrowing NIM and CASA decline hint at pressure from competition. Market participants will watch next quarter’s loan‑growth and NIM trajectory to gauge the bank’s resilience ahead of the FY27 earnings cycle.