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Informist, Saturday, Jul. 18, 2026

By Shweta

NEW DELHI – Bandhan Bank is expected to report strong growth in its net profit for the June quarter, supported by a healthy rise in its loan book, according to brokerages tracking the lender. Loan growth was mainly led by strong non-emerging entrepreneurs business portfolio, or non-microfinance loans, Kotak Securities Ltd. said in its pre-earnings note.

The bank is likely to post a rise of over 53% on year in the bottom line for the June quarter to INR 5.7 billion, according to the average of estimates from eight brokerages. On a sequential basis, the lender's net profit is expected to rise nearly 7%. Bandhan Bank will declare its earnings for the quarter Tuesday.

The highest estimate for the bank's net profit is INR 7 billion from JM Financial Institutional Securities Pvt. Ltd. while the lowest is INR 4.6 billion from Nomura Equity Research.

The private-sector lender's net interest income is expected to grow over 4% on year and 3% on quarter to INR 28.79 billion, as per the average of estimates. The estimates for Bandhan Bank's net interest income range from a high of INR 29.60 billion from JM Financial to a low of INR 28.13 billion from PhillipCapital (India) Pvt. Ltd.

While the Kolkata-based lender's advances rose over 16% on year to INR 1.56 trillion as of Jun. 30, its deposits grew nearly 7% on year to INR 1.65 trillion, according to provisional figures released by the bank. Its current account savings account ratio rose to 29.40% at the end of June, compared with 27.06% a year ago and 29.31% a quarter ago, according to the bank's provisional data. The bank reported a collection efficiency of 99.4%, up 20 basis points sequentially, in the non-emerging entrepreneurs business segment at the end of June.

Analysts at Motilal Oswal Financial Services Ltd. expect the bank's asset quality to improve with the gross non-performing asset ratio at 3.1% as on Jun. 30 compared with 3.3% as on Mar. 31 and 5.0% at the end of June 2025. Its net non-performing asset ratio is likely to improve to 0.9% as on Jun. 30, from 1.0% a quarter ago and 1.4% a year ago.

The bank's provision coverage ratio is likely to be 71.5% as on Jun. 30, as compared to 71.1% a quarter ago and 73.7% a year ago, according to Motilal Oswal. Credit cost will see an uptick in the June quarter, the brokerage said.

Bandhan Bank's net interest margin is expected to remain flat sequentially in the June quarter as the loan mix and yields are likely to be stable while the cost of funds is seen flat, Kotak Securities said. Meanwhile, analysts at Motilal Oswal expect the lender's net interest margin to decline by 14 bps on quarter amid modest growth in advances.

The bank is likely to set aside INR 7.3 billion as provisions in the June quarter, down 36% on year but up 9% on quarter, according to Nomura and Motilal Oswal. Analysts will be tracking the management's guidance on net interest margin. Analysts at Kotak Securities see "slippages (INR 95 billion, (about) 2.5%) as stress in the MFI (microfinance institution) industry is starting to ease." They are keen to monitor the "situation of the MFI portfolio of the bank compared to the rest of the players and medium term strategy with change in loan mix, especially on the NIM progression".

Shares of Bandhan Bank have risen over 19% since its March quarter earnings were announced on Apr. 28. Friday, its shares closed at INR 213.25 on the National Stock Exchange, down 0.5% from Thursday.

Of the 10 brokerage reports on the bank available with Informist, six have a "buy" recommendation on the stock with an average target price of INR 224 per share. This is 5% higher than Friday's closing price. Three brokerages have a "hold" recommendation with an average target price of INR 186 per share. The tenth says "sell", with an average target price of INR 160 per share.

Following are the June quarter earnings estimates for Bandhan Bank from eight brokerages in INR billion, in descending order of the estimate of net profit:

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Edited by Deepshikha Bhardwaj

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