 "Bandhan Bank Q2 net profit drops to ₹112 cr on lower operating income")
Post tax profit of private lender Bandhan Bank has decreased to Rs 112 crore during the second quarter of the current financial as compared to Rs 937 crore in the similar previous period.
Operating profit of the bank also decreased to Rs 1310 crore in the current second quarter, as against Rs 1855 crore in the similar previous quarter.
MD&CEO of Bandhan Bank Partha Pratim Sengupta told reporters here that the second quarter results were transitional and the lender's profitability will improve in the coming months.
"The repo rate cut has had an impact on the profitability of the bank. There has been a repricing of deposits of the bank. The focus of the bank is on CASA (current account, savings account) growth. The results of the second quarter are below internal expectations," Sengupta said.
He said that the growth of the microfinance portfolio remained subdued during the second quarter.
"For the bank, share of secured advances continued to rise. There has been decline in bulk deposits," Sengupta said.
"The gross NPA and the net NPA remained stable and the capital position of the bank is strong. The focus is on prudent risk management. The bank has transitioned itself from a microfinance institution (MFI) to a full service commercial lender," he said.
The asset quality is stable, he added.
The yields on microfinance loans were higher, Sengupta said, adding that the secured segment of the loans was growing faster.
Net interest income (NII) of the bank during the second quarter of 2025-26 stood at Rs 2589 crore compared to Rs 2934 crore in the similar previous period.
Provisions and other contingencies charged to the profit and loss during the second quarter of 2025-26 was Rs 1153 crore as compared to Rs 606 crore in the previous similar quarter.
Provision coverage ratio (PCR) as on September 30, 2025, stood at 73.7 per cent.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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