Synopsis:
The stock plunged over 7% after weak Q2FY26 results, with profit dropping 88% YoY and revenue declining 3%. Despite steady deposit growth, margin pressure, and a brokerage downgrade signaled concerns over performance recovery and profitability outlook.
The shares of the financial service providers have fallen up to 7 percent in today’s trading session after the company’s net profit plummeted 88 percent YoY and 70 percent QoQ in Q2FY26.
With a market capitalization of Rs 25,686.94 crore, the shares of Bandhan Bank Ltd were trading at Rs 159.60 apiece, decreasing around 6.39 percent as compared to the previous closing price of Rs 170.50 apiece.
The shares of Bandhan Bank Ltd have seen bearish movement after announcing its financial performance in Q2FY26, in which revenue decreased by 3 percent on a year-on-year basis from Rs 5,500 crore in Q2FY25 to Rs 5,354 crore in Q2FY26. On a Quarter-on-Quarter basis also, revenue plummeted by 2.2 percent from Rs 5,476 crore in Q1FY26 to Rs 5,354 crore in Q2FY26.
Moreover, net profit decreased by 88 percent on a yearly basis from Rs 937 crore in Q2FY25 to Rs 112 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis also, net profit shrunk by 70 percent from Rs 372 crore in Q1FY26 to Rs 112 crore in Q2FY26.
Further, the company’s Net interest income (NII) stood at Rs 2,590 crore, down 11.8% YoY and 6.1% quarter-on-quarter (QoQ), while total net revenue came in at Rs 3,140 crore, a decline of 11.5% YoY and 10.0% QoQ.
Additionally, Total deposits rose 10.9% year-on-year to ₹1,58,070 crore, supported by a strong 16.1% growth in retail deposits. While the CASA ratio at 28% showed quarterly improvement despite a yearly decline. Notably, non-East region deposits contributed 45.5%, indicating expanding geographic diversification and steady deposit growth momentum across key retail segments.
CLSA, one of the well-known brokerages globally, downgraded its rating to “accumulate” from “buy” and has cut its target price on this bank from Rs 220 apiece to Rs 190 per share, indicating a potential upside of 19 percent from Friday’s price of Rs 159.00 per share.
The brokerage noted that while the microfinance (MFI) loan book continues to shrink, the decline has slowed. It expects net interest margins to have bottomed out, with recovery likely beginning in FY27.
Bandhan Bank is a leading private sector bank in India, known for its strong presence in microfinance and retail banking. It serves over 3 crore customers nationwide, focusing on financial inclusion, affordable credit, and expanding its footprint across urban and rural markets.
Written by Abhishek Singh
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