Bandhan Bank's net profit for the second quarter of the 2026-27 financial year increased five times compared to the same period last year, reaching ₹622 crore. This strong growth was supported by a 14% rise in net interest income and an improvement in the bank's net interest margin, reflecting better earnings from its lending activities.
- Net profit surged from ₹122 crore in Q2 FY26 to ₹622 crore in Q2 FY27.
- Total income increased by 9.5% year-on-year to ₹6,458 crore.
- Net interest income rose 14% to ₹2,960 crore.
- Net interest margin improved by 30 basis points to 6.1%.
- Gross non-performing assets declined to 3.11%, down from 5.02% a year ago.
- Capital adequacy ratio increased to 18.32%.
What contributed to Bandhan Bank's profit growth in Q2 FY27?
The bank's net profit jumped fivefold to ₹622 crore from ₹122 crore in the previous year’s quarter. This growth was mainly due to a 14% increase in net interest income, which rose to ₹2,960 crore. The net interest margin, which measures the difference between interest earned and interest paid, also improved by 30 basis points to 6.1%, indicating more efficient lending operations.
How did Bandhan Bank's total income change in Q2 FY27?
Bandhan Bank's total income grew by 9.5% year-on-year, reaching ₹6,458 crore in the quarter ending September 2026. This increase reflects higher earnings from the bank’s core business activities compared to ₹5,900 crore in the same quarter the previous year.
What improvements were seen in Bandhan Bank's asset quality?
The bank showed better asset quality with a decline in gross non-performing assets (NPAs) to 3.11% in Q2 FY27, down from 3.15% in the previous quarter and significantly lower than 5.02% a year ago. Net NPAs, which represent bad loans after provisions, also decreased to 0.92%, improving from 1.3% in the year-ago period.
How is Bandhan Bank's capital position?
The capital adequacy ratio, a key measure of a bank's financial strength, rose slightly to 18.32% as of September 30, 2026, compared to 18.23% a year earlier. This indicates the bank has a strong capital base to support its lending and absorb potential losses.
What was the market reaction to Bandhan Bank's Q2 results?
Shares of Bandhan Bank closed 2.27% higher at ₹155.36 per share on the National Stock Exchange on October 28, 2026. However, the bank announced its quarterly results after the market closed that day.
Frequently Asked Questions
Q: What is net interest margin (NIM)?
A: Net interest margin is the difference between the interest income generated by banks and the amount of interest paid out to their lenders, relative to the amount of their interest-earning assets.
Q: Why is a lower non-performing asset (NPA) ratio important?
A: A lower NPA ratio indicates better asset quality, meaning fewer loans are in default or at risk of default, which strengthens the bank's financial health.
Q: What does the capital adequacy ratio signify?
A: The capital adequacy ratio measures a bank's capital relative to its risk-weighted assets. A higher ratio means the bank is better equipped to withstand financial stress.
