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Bandhan Bank Q1 FY26: 65% Net Profit Decline Analysis

Bandhan Bank’s Q1 FY26 net profit declined 65%, attributed to decreased income and rising non-performing assets.

Bandhan Bank Reports 65% Drop in Q1 FY26 Net Profit

Private sector lender Bandhan Bank reported a significant 65.02% year-on-year (YoY) drop in net profit for the quarter ended June 2025 (Q1 FY26). The bank’s profit after tax (PAT) stood at ₹371.96 crore, down from ₹1,063.46 crore in the same quarter last year.

Key Highlights

  • Net Interest Income (NII): Declined 7.7% to ₹2,757 crore from ₹2,986.6 crore in Q1 FY25.
  • Asset Quality: Gross non-performing assets (GNPA) rose to 4.96% from 4.71% in Q4 FY25. Net NPA increased to 1.36% from 1.28%.
  • Deposits: Total deposits grew 16% YoY to ₹1.55 lakh crore. CASA deposits stood at ₹41,858 crore, with a CASA ratio of 27.1%.

Retail Deposits

  • Retail Term Deposits: Rose 34% YoY to ₹63,661 crore.
  • Share of Retail Deposits: Accounted for 68% of total deposits.

Management Commentary

MD & CEO Partha Pratim Sengupta attributed the performance to the bank’s resilience and strategic direction, despite challenging operating conditions. The bank remains focused on prudent risk management, operational efficiency, and delivering long-term value to stakeholders.

Bandhan Bank shares ended 1.13% higher at ₹187.20 apiece on the day of the announcement.

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