 |
Bandhan Bank Q2 FY26 results show 88% profit fall amid portfolio realignment and stable asset quality. |
Bandhan Bank Q2 FY26 Results: Profit Falls 88% Amid Portfolio Transformation, But Long-Term Outlook Remains Positive
Bandhan Bank, one of India’s fastest-growing private sector lenders, has reported a steep 88% year-on-year drop in its net profit for the second quarter of FY26. The bank posted a net profit of ₹112 crore, compared to ₹937 crore in the same period last year. Despite this short-term decline, Bandhan Bank’s leadership emphasized that the dip reflects an ongoing strategic realignment rather than financial weakness.
Key Highlights: Bandhan Bank Q2 FY26 Results
- Net Profit: ₹112 crore vs ₹937 crore (down 88%)
- Net Interest Income (NII): ₹2,589 crore vs ₹2,934 crore (down 11.8%)
- Operating Profit: ₹1,310 crore vs ₹1,855 crore (down 29.4%)
- Provisions & Contingencies: ₹1,153 crore vs ₹606 crore (up 90.3%)
- Gross Advances: ₹1.4 lakh crore (up 7% YoY)
- Deposits: ₹1.6 lakh crore (up 11% YoY)
Portfolio Realignment and Growth Strategy
The Q2 performance highlights Bandhan Bank’s ongoing transformation towards a more balanced and secured portfolio. The share of secured advances rose sharply to 55% of total loans, up from 47% last year, reflecting the bank’s conscious move away from microfinance dependence.
Additionally, non-EEB (Emerging Entrepreneurs Business) advances climbed to 63% of the total loan book, supported by strong growth in retail and housing finance. The retail (excluding housing) portfolio alone surged 66% year-on-year, showing clear traction in the bank’s diversification strategy.
Asset Quality Remains Stable
Even as profits declined, asset quality metrics remained healthy.
This stability underlines Bandhan Bank’s disciplined risk management and steady recovery efforts, despite macroeconomic pressures.
Management Outlook
Speaking on the results, Partha Pratim Sengupta, MD & CEO, said:
“This quarter’s performance reflects a transitional phase for Bandhan Bank as we focus on building a stronger, diversified, and more resilient loan book. Our goal is sustainable and profitable growth while continuing to serve our customers with trust and innovation.”
Capital Strength and Future Vision
Bandhan Bank continues to maintain a robust capital adequacy ratio (CAR) of 18.6%, well above the regulatory requirement of 11.5%. This provides a strong buffer to support new growth opportunities and manage any near-term challenges.
The bank’s upcoming phase, informally termed “Bandhan Bank 2.0,” focuses on digital innovation, operational efficiency, and deeper financial inclusion. With over 6,350 banking outlets and a customer base exceeding 3.23 crore, Bandhan Bank remains committed to serving underbanked communities while modernizing its business model for sustainable long-term growth.
Bandhan Bank Stock Performance Snapshot
| Duration | Change |
|---|---|
| 1 Day | -0.96% |
| 5 Days | -0.43% |
| 1 Month | +5.16% |
| 6 Months | +2.99% |
| 1 Year | -3.93% |
| 5 Years | -41.07% |
Conclusion
Bandhan Bank’s Q2 results reveal a bank in transformation—short-term profit pressure but long-term promise. With stronger asset quality, a growing secured portfolio, and continued focus on financial inclusion, Bandhan Bank’s shift toward sustainable growth appears well underway. Analysts expect performance recovery once the portfolio restructuring stabilizes in the coming quarters.
Source:Social Media