Bandhan Bank posted a net profit of ₹1.12 billion in Q2 FY26, with interest earned at ₹53.54 billion and provisions rising sharply to ₹11.53 billion. Gross NPA increased to 5.02%, reflecting continued asset quality challenges amid cautious credit growth and steady deposit and loan expansion.
Bandhan Bank, the Kolkata-based private sector lender with a strong microfinance focus, released its financial results for the second quarter of FY26 with mixed outcomes. The bank earned interest income of ₹53.54 billion, supporting revenue generation despite a challenging operating environment. However, elevated provisions and contingencies at ₹11.53 billion weighed on profitability, limiting net profit to ₹1.12 billion for the quarter.
The gross non-performing assets (NPA) ratio rose to 5.02%, indicating elevated credit risks, particularly in microfinance segments facing stress. On the positive side, Bandhan Bank reported a 7.2% year-on-year loan growth to ₹140,062 crore and a 10.9% rise in total deposits to ₹157,975 crore as of September 2025, showcasing gradual balance sheet strengthening. The bank’s liquidity coverage ratio stood at a comfortable 152.68%, supporting resilience amid sectoral pressures.
Market participants view the results as a turning point toward portfolio stabilization, with cautious optimism on asset quality improvement and credit momentum in the coming quarters.
Key Highlights:
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Q2 FY26 net profit: ₹1.12 billion
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Interest earned: ₹53.54 billion
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Provisions and contingencies: ₹11.53 billion
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Gross NPA ratio: 5.02%
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Loan book grew 7.2% YoY to ₹140,062 crore
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Deposits up 10.9% YoY to ₹157,975 crore
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Liquidity coverage ratio: 152.68%
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Focus on asset quality stabilization and cautious credit growth
Sources: Bandhan Bank quarterly report, Business Standard, LoansJagat, CNBC TV18, NSE filings