Bandhan Bank reported a 23.9% quarter-on-quarter increase in net profit to ₹622 crore for the September quarter of FY27. Net interest income rose 1.3% to ₹2,960.4 crore. Improved loan asset quality and steady credit expansion helped the lender. Gross advances reached ₹1.58 lakh crore, while total deposits grew 9% year-on-year.
An improved loan asset quality and steady credit expansion bolstered the lender's quarterly profitability, supported by robust retail book growth and higher secured advances. Check how management plans to sustain deposit mobilization in the coming quarters.
Bandhan Bank reported a 23.9% quarter-on-quarter increase in net profit to ₹622 crore for the September quarter of FY27, compared with ₹502 crore in the previous quarter. Net interest income (NII) rose 1.3% sequentially to ₹2,960.4 crore from ₹2,921 crore.
The bank's asset quality improved marginally during the quarter. Gross non-performing assets (NPA) stood at 3.11% as of September 30, 2026, compared with 3.15% in the previous quarter. Net NPA eased to 0.92% from 0.93%.
Provisions stood at ₹717.5 crore in Q2 FY27, compared with ₹683 crore in the previous quarter and ₹1,152.7 crore in the year-ago period.
Bandhan Bank's gross advances stood at ₹1.58 lakh crore as of September 30, 2026, up 13% from ₹1.40 lakh crore a year ago, as per a press release.
Secured advances grew 18% year-on-year and accounted for more than 57% of total advances, compared with 55% a year earlier. The retail book, excluding housing, grew 42%, while wholesale banking advances rose 32%. The housing book grew 4%, and the emerging entrepreneurs business (EEB) portfolio registered growth of 2%.
Total deposits increased 9% year-on-year to ₹1.73 lakh crore from ₹1.58 lakh crore. CASA deposits stood at ₹46,132 crore, with the CASA ratio at 27%. The ratio of CASA and retail term deposits to total deposits stood at 73%.
H1 profit rises to ₹1,123 crore
For the six months ended September 30, 2026, Bandhan Bank's net interest income increased to ₹5,881 crore from ₹5,346 crore in the corresponding period last year. Net total income rose to ₹7,190 crore from ₹6,618 crore.
Operating profit for H1 FY27 stood at ₹2,915 crore, compared with ₹2,979 crore in H1 FY26. Provisions, excluding tax, and contingencies declined to ₹1,400 crore from ₹2,299 crore in the year-ago period.
Profit after tax for the first half of FY27 rose to ₹1,123 crore from ₹484 crore in H1 FY26. Net interest margin for the half year stood at 6.2%, while return on assets was 1.1% and return on equity was 8.5% on an annualised basis.
Bank reports improvement in EEB collections
The bank reported collection efficiency of 99.3% for its EEB loans in Q2 FY27 and sequential improvement in the SMA 0, SMA 1 and SMA 2 buckets of the portfolio.
As of September 30, 2026, its capital adequacy ratio stood at 18.3%, against the regulatory requirement of 11.5%.
Commenting on the performance, MD and CEO Partha Pratim Sengupta said the bank remained focused on business growth, deposit mobilisation, improving its loan portfolio mix, protecting asset quality and strengthening profitability. He added that the bank would continue to focus on its retail franchise, customer relationships and long-term value creation.
Bandhan Bank shares closed 2.27% higher at ₹155.36, up ₹3.45, ahead of the bank's Q2 earnings announcement on October 28.