Bandhan Bank Reports 35% YoY Jump in Net Profit to ₹502 Crore for Q1 FY27

Private sector lender Bandhan Bank Limited (NSE: BANDHANBNK, BSE: 541153) announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27).

Driven by sharp improvements in asset quality, lower credit costs, and a expanding retail deposit base, the bank reported a 34.9% year-on-year (YoY) increase in Net Profit to ₹501.67 crore (reported as ₹502 crore in business updates), up from ₹371.96 crore in Q1 FY26.

Earnings & Financial Highlights

(All monetary figures in ₹ Lakhs, unless otherwise noted)

Interest Earned: Rose 2.8% Y-o-Y to ₹5,63,055.20 lakh (₹5,630.55 crore) compared to ₹5,47,561.05 lakh in Q1 FY26.

Net Interest Income (NII): Reached ₹2,921 crore, registering a 5.9% Y-o-Y growth over ₹2,757 crore in Q1 FY26. Net Interest Margin (NIM) stood at 6.2%.

Other Income: Reported at ₹60,382.84 lakh (₹603.83 crore).

Total Income: Reached ₹6,23,438.04 lakh (₹6,234.38 crore), up 0.5% Y-o-Y.

Operating Expenses: Stood at ₹2,16,631.01 lakh, driven by Employee Costs of ₹1,35,831.66 lakh and Other Operating Expenses of ₹80,799.35 lakh.

Operating Profit Before Provisions: Stood at ₹1,35,810.36 lakh (₹1,358.10 crore).

Provisions & Contingencies (Other than Tax): Dropped 40.5% Y-o-Y to ₹68,258.61 lakh (₹682.59 crore), down from ₹1,14,690.53 lakh in Q1 FY26.

Profit Before Tax (PBT): Rose 29.5% Y-o-Y to ₹67,551.75 lakh (₹675.52 crore).

Tax Expenses: Stood at ₹17,384.88 lakh.

Net Profit After Tax (PAT): Surged 34.9% Y-o-Y to ₹50,166.87 lakh (₹501.67 crore) from ₹37,196.20 lakh in Q1 FY26.

Balance Sheet & Key Ratios

Deposits & Advances Expansion

Gross Advances: Reached ₹1,55,555 crore (₹1.56 lakh crore) as of June 30, 2026, marking a 16.4% Y-o-Y growth from ₹1,33,625 crore.

Retail Book (Excluding Housing): Surged 45% Y-o-Y.

Wholesale Banking: Expanded 38% Y-o-Y.

Housing Book: Grew 6% Y-o-Y.

Secured Advances: Now constitute 57% of total advances following a 27% Y-o-Y expansion.

Total Deposits: Reached ₹1,64,886 crore (₹1.65 lakh crore), up 6.6% Y-o-Y from ₹1,54,666 crore.

CASA & Retail Deposits: CASA deposits stood at ₹48,479 crore (up 15.8% Y-o-Y), maintaining a CASA ratio above 29%. Total Retail Deposits (CASA + Retail Term Deposits) reached ₹1,21,956 crore, representing 74% of total deposits.

Asset Quality & Capital Metrics

Gross NPA Ratio: Improved significantly to 3.15% (reported as 3.1%), down 182 bps Y-o-Y from 4.96% in Q1 FY26 and down sequentially from 3.27% in Q4 FY26.

Net NPA Ratio: Dropped to 0.93% (reported as 0.9%), down 43 bps Y-o-Y from 1.36% in Q1 FY26 and down sequentially from 0.97% in Q4 FY26.

Provision Coverage Ratio (PCR): Reached 85.9% (including technical write-offs).

Capital Adequacy Ratio (CRAR): Stood strong at 18.15% (including profits), well above regulatory requirements.

Return Metrics: Return on Assets (RoA) improved to 1.0% (annualized ratio 0.25% in raw tables) and Return on Equity (RoE) stood at 7.7%.

Segmental Revenue & Profitability Breakdown

(All figures in ₹ Lakhs)

Retail Banking:

Segment Revenue: ₹5,52,864.44 lakh

Segment Profit Before Tax: ₹38,418.38 lakh (up from ₹11,686.79 lakh in Q1 FY26)

Segment Assets: ₹1,15,59,395.74 lakh

Wholesale Banking:

Segment Revenue: ₹82,959.03 lakh

Segment Results: Loss of ₹(7,711.03) lakh

Segment Assets: ₹42,09,080.59 lakh

Treasury:

Segment Revenue: ₹65,851.93 lakh

Segment Profit Before Tax: ₹25,264.47 lakh

Segment Assets: ₹50,32,546.89 lakh

Other Banking Operations:

Segment Revenue: ₹12,347.53 lakh

Segment Profit Before Tax: ₹11,579.93 lakh

Share Capital & EPS Data

Paid-Up Equity Capital: ₹1,61,107.80 lakh (Face value of ₹10/- per share).

Basic & Diluted EPS: Increased to ₹3.11 per share for Q1 FY27, compared to ₹2.31 per share in Q1 FY26 and ₹3.32 in Q4 FY26.

Government of India Shareholding: NIL.

Operational Reach

Bandhan Bank operates an extensive footprint spanning nearly 6,400 distribution outlets across India, supported by a workforce of over 74,500 employees.

Speaking on the Bank's performance, MD & CEO, Partha Pratim Sengupta said, "Our Q1 FY2026-27 performance reflects the resilience of Bandhan Bank's franchise, the commitment of our teams, and the trust our stakeholders continue to place in us. As we build on this momentum, we remain focused on delivering customer-centric and digitally enabled growth. By strengthening our distribution network, expanding our product offerings, and harnessing data-driven insights, we are well positioned to create greater value for our customers and stakeholders while driving sustainable, balanced, and future-ready growth."

Shares of Bandhan Bank Limited was last trading in BSE at Rs. 211.35 as compared to the previous close of Rs. 213.20. The total number of shares traded during the day was 205466 in over 2785 trades.

The stock hit an intraday high of Rs. 213.55 and intraday low of 209.65. The net turnover during the day was Rs. 43510479.00.

Source : Equity Bulls

Keywords

BandhanBank INE545U01014 Q1FY27 Q1FY2027 ResultUpdate