The company’s shares fell 5% after Q1FY26 results showed a 65% YoY drop in net profit and rising NPAs. Despite deposit growth and branch expansion, concerns remain over asset quality and regional concentration, especially in Eastern India.
The shares of the financial service provider plummeted up to 5 percent in today’s trading session after the company’s net profit & revenue decreased up to 65 percent & 1 percent, respectively in Q1FY26.
With a market capitalization of Rs 29,255.24 crore, the shares of Bandhan Bank Ltd were trading at Rs 181.60 per share, decreasing around 3 percent as compared to the previous closing price of Rs 187.20 apiece.
The shares of Bandhan Bank Ltd have seen bearish movement after reporting negative results in Q1FY26. Interest earned increased by 1 percent on a quarter-on-quarter basis from Rs. 5,434 crore in Q4FY25 to Rs. 5,476 crore in Q1FY26. Further, Interest earned shrank by 1 percent year on year, from Rs 5,536 crore in Q1FY25 to Rs 5,476 crore in Q1FY26.
The company’s net profit increased by 17 percent on a quarter-on-quarter basis, from Rs. 318 crore in Q4FY25 to Rs. 372 crore in Q1FY26. Further, net profit decreased significantly by 65 percent year on year from Rs 1,063 crore in Q1FY25 to Rs 372 crore in Q1FY26.
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Based on its Q1FY26 results, the company presents a mixed but concerning picture. While total deposits showed healthy growth of 16.1% year-over-year, this was overshadowed by significant headwinds. Asset quality has weakened, with the Gross Non-Performing Assets ratio increasing to 5.0%.
The bank is steadily expanding its physical presence, adding 47 new banking outlets in the past year to reach a total of 6,344. It shows a strong commitment to serving underbanked areas, with a combined 71% of its outlets in rural and semi-urban locations. Geographically, the bank maintains a heavy concentration in the Eastern region, which consistently accounts for 45% of its network.
Bandhan Bank Limited (the Bank) is an India-based banking company. The Bank’s segments include Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business. The Treasury segment includes investments in sovereign securities and trading operations, and also includes the central funding unit.
Written by Abhishek Singh
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