Bandhan Bank tanks 4% after Q1 miss; is it time to buy the dip or bail out?

Bandhan Bank's profit after tax (PAT) figure experienced a double-digit drop of 65 per cent to ₹372 crore in the quarter ending June 30, 2025 from ₹1,063 crore recorded in Q1FY25

Bandhan Bank share price today: Shares of private lender, Bandhan Bank, dropped over 4 per cent on Monday, July 21, 2025, recording an intraday low of ₹178.70, after the banking firm released its results for the first quarter of the financial year 2025-2026 (Q1FY26).

At 9:30 AM, shares of Bandhan Bank were trading at ₹183, down by 2.06 per cent on the National Stock Exchange. In comparison, NSE Nifty was trading largely flat, albeit in the negative territory, down by 0.27 per cent, quoting 24,901 level. The total market capitalisation of the company stood at ₹29,192.41 crore.

Bandhan Bank Q1FY26 earnings

Bandhan Bank's profit after tax (PAT) figure experienced a double-digit drop of 65 per cent to ₹372 crore in the quarter ending June 30, 2025 from ₹1,063 crore recorded in the corresponding quarter of the previous fiscal year. The private lender's net interest income declined by 7.7 per cent year-on-year (Y-o-Y) to ₹2,757.2 crore during the quarter under review from ₹2,986.6 crore reported in Q1FY25.Net interest margin stood at 6.4 per cent, down by 117 basis points (bps) from the same period of FY25. Sequentially, the figure was down by 27 bps.

"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," said Partha Pratim Sengupta, managing director and CEO, Bandhan Bank

Bandhan Bank's total income (net) stood at ₹3,479 crore in Q1FY26, a slight decline from ₹3,529 crore reported in Q1FY25.Even in terms of asset quality, the lender failed to impress investors, as gross non-performing assets (NPAs) increased 5 per cent, marking a 74 bps Y-o-Y rise. That apart, net NPAs also increased 21 bps Y-o-Y to 1.4 per cent in Q1FY26.

Brokerage View- Equinomics Research

Chokkalingam G, founder of Equinomics Research, has advised investors to avoid the stock, keeping in view the weak earnings of the stock.

"Bandhan Bank is underperforming on multiple fronts, especially when compared to its peers. Pre-provision operating profit has declined, and credit growth is limited to just 6 per cent, which clouds its future prospects. Even in terms of price-to-book value, there are more attractive banking stocks available in the market," he said.