KOLKATA, Jan 22, 2026, 16:26 IST
- Net profit jumped 84% from the previous quarter to 2.06 billion rupees, yet dropped 52% compared to the same period last year
- Gross bad-loan ratio fell to 3.33% from 5.02% in the September quarter
- Deposits surged 11% to 1.57 trillion rupees, while advances increased 10% to 1.45 trillion. Secured loans now make up 57% of the total book
Bandhan Bank posted a December-quarter net profit of 2.06 billion rupees, marking an 84% jump from the prior quarter but falling 52% compared to the same period last year. The bank’s asset quality showed signs of improvement alongside loan growth. Shares gained 3.3% on Thursday.
These figures are crucial as Bandhan works to stabilize earnings following a sluggish September quarter, where profit dropped to 112 crore rupees and margins narrowed. Investors are closely tracking if the bank’s shift toward secured lending is beginning to impact credit metrics.
Brokerage estimates collected by NDTV Profit had forecast quarterly profits near 3.97 billion rupees, with expectations of margin pressure. The actual results fell notably short, despite a marked improvement in asset quality.
Gross non-performing assets—loans overdue on payments—dropped to 3.33% of advances, down from 5.02% in the previous quarter. Meanwhile, the net NPA ratio, which factors in provisions for potential losses, declined to 0.99% from 1.37%.
Net interest income climbed 3.8% from the prior quarter, reaching 26.88 billion rupees. The net interest margin — the gap between loan earnings and deposit costs — nudged higher to 5.90%. Total income also saw a 3.8% sequential increase, hitting 61.22 billion rupees.
Operating profit rose 10% from the previous quarter, reaching 14.45 billion rupees. However, operating expenses climbed as well, led by higher staff costs. Capital adequacy, which gauges the balance-sheet buffer, remained at 17.33%.
Deposits climbed 11% over the past year, reaching 1.57 trillion rupees. Advances increased by 10%, hitting 1.45 trillion rupees. Secured advances surged 27% year-on-year and currently represent roughly 57% of the loan portfolio.
Profit for the nine months ending December fell sharply to 6.89 billion rupees, down from 24.27 billion rupees the previous year. Total income for the period also dipped by roughly 3%.
Bandhan is set to host an earnings call with analysts and investors at 1700 IST on Thursday, according to a recent filing. The bank had previously announced a board meeting in Kolkata to “consider and approve” the unaudited results. Trading for designated employees will resume 48 hours after the results are declared. Bandhan Bank
This update comes amid a packed earnings slate for lenders, where investors are quick to pounce on any hint that credit stress is easing in smaller-ticket lending. Microfinance player CreditAccess Grameen surged Wednesday after HSBC and CLSA lifted their ratings on the stock following its December-quarter results.
Bandhan’s profit dropped by over half compared to the previous year, with total income sliding 7% year-on-year. A drop in collections or a new surge in delinquencies could force higher provisions, slowing the recovery.
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