Bandhan Bank’s Q2 net plunges 88% to ₹111.87 crore as provisions rise 90%

Partha Pratim Sengupta, MD & CEO, Bandhan Bank
| Photo Credit:
DEBASISH BHADURI

Private lender Bandhan Bank announced an 88.07% year-on-year decline in net profit to ₹111.87 crore for the second quarter of FY26, attributed to reduced operating income and heightened provisions. This compares to ₹937.44 crore net profit during the same period last fiscal.

Operating profit decreased by 29.36% to ₹1,310.35 crore from ₹1,855.09 crore in Q2 FY25. Net interest income fell 11.76% to ₹2,588.56 crore year-on-year, with net interest margins contracting 152 basis points to 5.8%. Provisions surged 90.12% to ₹1,152.56 crore during the quarter.

Performance Analysis

MD & CEO Partha Pratim Sengupta described the results as reflecting a transition phase, stating: “The 75 bps repo rate reduction in Q1, which we transmitted to customers, temporarily affected Q2 performance. Deposit repricing in coming quarters should lower funding costs and improve margins.”

Sengupta acknowledged the quarterly performance fell below expectations, noting: “The 200 bps MCLR reduction impacted nearly half our loan book, while EEB (microfinance) portfolio growth remained constrained by industry adjustments.”

The bank’s asset quality showed modest deterioration with gross NPAs rising to 5.02% from 4.68% year-on-year, while net NPAs increased to 1.37% from 1.29%.

Published on October 30, 2025