Earnings Review
Despite low provisions, fall in income drags Bandhan Bk PAT
This story was originally published at 18:01 IST on 22 January 2026
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--Bandhan Bank Oct-Dec net profit INR 2.06 bln
--Analysts saw Bandhan Bank Oct-Dec net profit at INR 3.60 bln
--Bandhan Bank Oct-Dec net profit INR 2.06 bln vs INR 4.26 bln year ago
--Bandhan Bank Oct-Dec total income INR 61.22 bln vs INR 65.91 bln year ago
--Bandhan Bank Oct-Dec provisions INR 11.55 bln vs INR 13.76 bln year ago
--Bandhan Bank gross NPA ratio 3.33% as on Dec 31 vs 5.02% qtr ago --[I] Bandhan Bank net NPA ratio 0.99% as on Dec 31 vs 1.37% qtr ago
--Bandhan Bank capital adequacy ratio 17.33% as on Dec 31
--Bandhan Bank Apr-Dec net profit INR 6.89 bln vs INR 24.27 bln yr ago
--Bandhan Bank Apr-Dec total income INR 182.24 bln vs INR 187.81 bln yr ago
--Bandhan Bank provision coverage ratio 84.3% as on Dec 31
--Bandhan Bank advances INR 1.45 tln as on Dec 31, up 10% on year
--Bandhan Bank deposits INR 1.57 tln as on Dec 31, up 11% on year
--Bandhan Bank current, savings account ratio 27% as on Dec 31
--Bandhan Bank Oct-Dec NIM 5.9% vs 5.8% qtr ago
--Bandhan Bank Oct-Dec net interest income INR 26.88 bln vs INR 25.89 bln QoQ
--Bandhan Bk Oct-Dec recoveries, upgrades INR 3.5 bln vs INR 2.8 bln yr ago
--Bandhan Bank Oct-Dec credit cost 3.3% vs 3.4% qtr ago
--Bandhan Bank Oct-Dec fresh slippages INR 13.1 bln vs INR 16.2 bln yr ago
By Nandini Sinha
MUMBAI – Bandhan Bank Ltd. reported a significant on-year fall in its net profit for the December quarter due a sharp decline in its total income, particularly its other income. The fall in net profit far exceeded the street's estimates. A sharp fall in the bank's provisions, however, limited a further fall in its profit.
Bandhan Bank's net profit for the December quarter was INR 2.06 billion, down nearly 52% from INR 4.27 billion in the year-ago quarter. Analysts had estimated the bank's net profit to be INR 3.6 billion. Sequentially, the Kolkata-based lender's net profit rose 84% on year.
The bank's net interest income was INR 26.9 billion for the December quarter, down 4.5% on year. Sequentially, the net interest income was up 3.8%. Analysts had estimated Bandhan Bank's net interest income to be INR 27.16 billion.
The bank's other income was down 38% on year in the December quarter to INR 6.91 billion. In the December quarter last year, the bank had a one-off income of INR 5.38 billion under this which pushed up the base. Albeit low, in Oct-Dec too, Bandhan Bank had a one-off income of INR 1.26 billion, from cash received from sale of written-off portfolio to asset restructuring companies.
The bank's operating expenses, excluding employee costs, during the quarter under review also rose over 18% on year to INR 8 billion, eating into the profit.
Bandhan Bank's total expenditure for the December quarter was INR 46.77 billion, up 2.4% on year. Employees cost fell nearly 8% on year to INR 11.34 billion.
The net interest margin was 5.9% compared with 5.8% in the trailing quarter. The bank's credit cost was 3.3% compared with 3.4% in the September quarter. Fresh slippages fell to INR 13.1 billion from INR 16.2 billion in the year-ago quarter.
Its provisions and contingencies in the December quarter fell more than 16% to INR 11.55 billion from INR 13.76 billion in the same quarter a year ago. Bandhan Bank reported an improvement in its asset quality sequentially as well as on year. The bank's gross NPA ratio was 3.33% as of Dec. 31 against 5.02% in the trailing quarter. The net NPA ratio was 0.99% compared with 1.37% in the trailing quarter.
The bank's total deposits rose 11.2% to INR 1.57 trillion as of Dec. 31, while advances rose 10% on year to INR 1.45 trillion. The current account savings account ratio was 27.3% as of Dec. 31, down 446 bps on year and 70 bps quarter-on-quarter.
Bandhan Bank's capital adequacy ratio was 17.3% as of Dec. 31, lower than 18.2% end of September. Provision coverage ratio, including technical write-offs, of the bank was 84.3% as of Dec. 31, lower than 87.6% end of trailing quarter.
The net profit for the Apr-Dec period fell nearly 72% to 6.89 billion. The bank's total income for the Apr-Dec was INR 182.24 billion, down 3% from the year-ago period. Shares of the bank closed at INR 142.46, up over 3%, on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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