Bandhan Bank reported a 65% decline in Q1FY26 net profit at ₹372 crore, hit by elevated slippages and provisions in its microfinance portfolio. Gross NPAs rose to 4.96%. Operating profit fell 14% due to weaker net interest income.
Partha Pratim Sengupta, MD & CEO, stated:
“While the operating environment poses certain challenges, our performance reflects the underlying resilience of our business and the strength of our strategic direction. We remain focused on prudent risk management, operational efficiency, and delivering long-term value for our customers and stakeholders.
Sequential improvement in profit (↑17% QoQ)
Strong growth in Retail & Wholesale banking
Continued shift toward secured lending to de-risk the portfolio
Overall Review
Asset Quality & Capital
- Gross NPA: 5.0% (vs 4.2% YoY)
- Net NPA: 1.4% (vs 1.15% YoY)
- Provision Coverage Ratio: 73.7% (87.3% including write-offs)
- Capital Adequacy Ratio: 19.4% (well above regulatory requirement)
