Earnings Review
Bandhan Bank Q2 PAT falls most in 6 quarters, misses view
This story was originally published at 18:50 IST on 30 October 2025
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--Bandhan Bank Jul-Sept net profit INR 1.12 bln
--Analysts saw Bandhan Bank Jul-Sept net profit at INR 3.79 bln
--Bandhan Bank Jul-Sept net profit INR 1.12 bln vs INR 9.37 bln year ago
--Bandhan Bank Jul-Sept total income INR 59.00 bln vs INR 61.09 bln year ago
--Bandhan Bank Jul-Sept provisions INR 11.53 bln vs INR 6.06 bln year ago
--Bandhan Bank gross NPA ratio 5.02% as on Sept 30 vs 4.96% qtr ago
--Bandhan Bank net NPA ratio 1.37% as on Sept 30 vs 1.36% qtr ago
--Bandhan Bank capital adequacy ratio 18.23% as on Sept 30
--Bandhan Bank Apr-Sept net profit INR 4.84 bln vs INR 20.01 bln yr ago
--Bandhan Bank Apr-Sept total income INR 121.02 bln vs INR 121.91 bln yr ago
--Bandhan Bank Q2 net interest income INR 25.89 bln vs INR 29.34 bln yr ago
--Bandhan Bank provision coverage ratio 73.7% as on Sept 30
--Bandhan Bank advances INR 1.40 tln as on Sept 30, up 5% on qtr
--Bandhan Bank deposits INR 1.58 tln as on Sept 30, up 2% on qtr
--Bandhan Bank current, savings account ratio 28% as on Sept 30
--Bandhan Bank Jul-Sept credit cost 3.4% vs 3.5% qtr ago
--Bandhan Bank Jul-Sept fresh slippages INR 15.9 bln vs INR 11.1 bln yr ago
--Bandhan Bk Jul-Sept recoveries, upgrades INR 3.2 bln vs INR 3.0 bln yr ago
By Shubham Rana
NEW DELHI - Bandhan Bank's net profit fell year on year for the second consecutive quarter in Jul-Sept because of a slow business growth and the nearly doubling of provisions. While analysts had estimated a decline in net profit, the fall was much higher than projected and the worst in six quarters.
The Kolkata-based bank's net profit fell 88% on year to INR 1.12 billion. This was the worst on-year fall in net profit since Jan-Mar 2024. Analysts had estimated the net profit at INR 3.79 billion. Sequentially, the net profit was down 70%.
Provisions jumped 90% on year to INR 11.53 billion during the September quarter. The interest income fell 2.7% on year to INR 53.54 billion during Jul-Sept. This was the biggest fall in interest income since the bank was listed on exchanges in 2018.
Total income was down 3.4% on year at INR 59.00 billion in the September quarter. Total expenses increased 7.9% on year to INR 45.90 billion, led by higher operating expenses. Interest expenses rose 7.8% on year to INR 27.65 billion.
The bank's net interest income fell 12% on year to INR 25.89 billion in the September quarter. Analysts had projected a net interest income of INR 27.06 billion for the September quarter. Bandhan Bank's net interest margin fell 152 basis points on year and 55 bps on quarter to 5.8% in Jul-Sept.
The bank's advances rose 7.2% on year and 4.8% on quarter to INR 1.40 trillion as of Sept. 30. The share of the entrepreneurs segment, which focusses on microloans, moderated to 23.6% of the total loan book as of end-September from 25.2% a quarter ago. The share of non-entrepreneurs segment in total advances increased to 63% by end of September compared with 55% a year ago.
The bank had deposits worth INR 1.58 trillion as of Sept. 30, up 11% on year and 2.2% on quarter. Bandhan Bank's current, savings account ratio was 28% as of Sept. 30. down 521 bps on year and 90 bps on quarter.
The asset quality worsened in the September quarter. The gross non-performing asset ratio was 5.02% as of Sept. 30, up from 4.68% a year ago and 4.96% a quarter ago. The net NPA ratio was 1.37% as of Sept. 30 against 1.29% a year ago and 1.36% a quarter ago.
Bandhan Bank's credit cost was 3.4% in Jul-Sept, tad lower than 3.5% in the June quarter. Credit cost was 1.9% in Jul-Sept 2024. Bandhan Bank saw fresh slippages of INR 15.9 billion in the September quarter compared with INR 11.1 billion a year ago. It saw recoveries and upgrades of INR 3.2 billion in Jul-Sept against INR 3.0 billion a year ago.
The bank's capital adequacy ratio was 18.23% as of Sept. 30 against 14.34% a year ago and 19.08% a quarter ago. The provision coverage ratio was 73.7% as of Sept. 30, up 26 bps on year and 6 bps on quarter.
For the six months ended September, Bandhan Bank reported a net profit of INR 4.84 billion, down 76% on year. Total income was INR 121.02 billion in Apr-Sept as against INR 121.91 billion a year ago. Shares of the bank Thursday ended 1.0% lower at INR 170.58 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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