Shares of Bandhan Bank surged over 10% in early trade on April 29, 2026, after the private sector lender reported a massive 686% year-on-year (YoY) jump in its net profit for the fourth quarter of fiscal 2025-26. The bank's net profit stood at Rs 534 crore for the January-March quarter, compared to Rs 68 crore in the same period last year.
Strong Financial Performance
The sharp rise in profitability was driven by a significant improvement in asset quality and lower provisions. Bandhan Bank's net interest income (NII) grew by 12% YoY to Rs 2,350 crore, while its net interest margin (NIM) remained stable at around 4.2%. The bank's gross non-performing assets (GNPA) ratio improved to 2.8% from 3.5% in the previous quarter, and the net NPA ratio fell to 0.9% from 1.2%.
Provisions and Asset Quality
Provisions and contingencies declined sharply by 45% YoY to Rs 450 crore, reflecting better recovery and lower slippages. The bank also reported a 15% growth in its loan book, driven by strong demand in the microfinance and affordable housing segments. Deposits grew by 10% YoY, with a healthy mix of current and savings account (CASA) deposits.
Market Reaction
Following the results, Bandhan Bank's stock price surged 10.5% to Rs 245.60 on the BSE, with a market capitalization of over Rs 39,000 crore. The stock has gained nearly 20% in the last one month, outperforming the broader market. Analysts have maintained a positive outlook on the stock, citing the bank's improving asset quality and strong growth trajectory.
Management Commentary
Bandhan Bank's managing director and CEO said, "We are pleased with the strong performance in Q4, driven by disciplined execution and a focus on asset quality. The improvement in our NPA ratios and the strong growth in our core business reflect the resilience of our business model. We remain optimistic about the growth prospects for the coming quarters."
Outlook
The bank has guided for loan growth of 15-18% in FY27, with a focus on diversifying its loan portfolio. It also expects to maintain its NIM in the range of 4-4.5% and further improve its asset quality. Bandhan Bank's board has recommended a dividend of Rs 1.5 per share for the financial year 2025-26.
Overall, the strong Q4 performance has boosted investor confidence, and the stock is expected to remain in focus in the near term.
