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Bandhan Bank Profit Plunges 88% as Earnings Struggle
31 Oct
Summary
- Bandhan Bank Q2FY26 profit down 88% to Rs 110 crore
- Weak net interest income, lower margins, rising credit costs
- Asset quality deteriorates, GNPA rises to 5%, NIM slips to 5.8%
On October 31, 2025, Bandhan Bank reported a sharp decline in its earnings for the July-September quarter of the fiscal year 2025-26. The private sector lender's net profit (PAT) plunged 88.1% year-on-year to Rs 110 crore, a 69.9% sequential drop.
The bank's performance was weighed down by weak net interest income, lower margins, and rising credit costs. Net interest income (NII) stood at Rs 2,590 crore, down 11.8% year-on-year and 6.1% quarter-on-quarter. Total net revenue also declined 11.5% year-on-year and 10% sequentially to Rs 3,140 crore. Operating profit fell 29.4% year-on-year and 21.5% quarter-on-quarter to Rs 1,310 crore.
Despite a 7.2% year-on-year and 4.8% quarter-on-quarter growth in gross advances to Rs 1,40,040 crore, and a 10.9% year-on-year and 2.2% quarter-on-quarter increase in total deposits to Rs 1,58,070 crore, the bank's asset quality slightly deteriorated. The gross non-performing assets (GNPA) ratio rose to 5%, up 34 basis points year-on-year and 5 basis points quarter-on-quarter. The net interest margin (NIM) also declined to 5.8%, lower by 152 basis points year-on-year and 55 basis points quarter-on-quarter.
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The bank's return ratios remained weak, with ROA falling to 0.2% and ROE dropping sharply to 1.8%.
