Bandhan Bank Q1 FY26 results: Net profit down 65% on rising bad loans

Total income of the bank stood at ₹6,201 crore in Q1 FY26, up 1.9 per cent from ₹6,082 crore in the year-ago quarter

Bandhan Bank on Friday reported a 65 per cent year-on-year (y-o-y) decline in net profit to ₹372 crore in the April–June quarter (Q1FY26) on rising bad loans and sliding core income. Net profit in the same quarter was ₹1,063 crore in FY25, according to a BSE filing by the company.

 

Sequentially, profit jumped 17 per cent from ₹318 crore in Q4FY25.

 

Total income of the bank stood at ₹6,201 crore in Q1FY26, up 1.9 per cent from ₹6,082 crore in the year-ago period. On a sequential basis, revenue increased 1.1 per cent from ₹6,133 crore reported in Q4FY25.

 

Net interest income (NII) of the bank for this quarter was ₹2,757 crore, down 8 per cent from ₹2,987 crore a year ago. However, it remained unchanged sequentially. 

 

The bank's asset quality deteriorated as gross non-performing assets (NPAs) rose to 5 per cent of gross advances at the end of the June quarter, from 4.2 per cent a year ago.

 

Similarly, net NPAs, or bad loans, also increased to 1.4 per cent, as against 1.15 per cent in the year-ago period.

 

As a result, provisions and contingencies doubled to ₹1,147 crore as against ₹523 crore in the same period a year ago.

 

Speaking on the bank's performance, MD & CEO Partha Pratim Sengupta said, “While the operating environment poses certain challenges, our performance reflects the underlying resilience of our business and the strength of our strategic direction. We remain focused on prudent risk management, operational efficiency, and delivering long-term value for our customers and stakeholders.” 

Bandhan Bank closed at ₹187.20, up ₹2.10 or 1.13 per cent at the BSE on Friday.