Bandhan Bank Share Price: Bandhan Bank shares plunged 15 per cent on July 22 despite the lender reporting better-than-expected quarterly profit, after it lowered its return-on-assets (RoA) guidance for the financial year, citing expectations of narrower net interest margins and higher operating expenses.
Shares of the company hit an intraday low of Rs 176.10, which is 15.58 per cent lower than the previous close of Rs 208.60 per share.
Bandhan Bank expects its return on assets (RoA) to average 1.2-1.4 per cent by the end of FY27 (April-March), lower than its earlier aspiration of 1.6-1.8 per cent, Managing Director and Chief Executive Officer Partha Pratim Sengupta said on Tuesday.
“I would like to reiterate that this is because of the external factors that we are confronting now,” he said during a post-earnings analyst conference call.
Bandhan Bank said its medium-term strategic objective remains unchanged, although the lender expects the timeline for achieving its targeted return on assets (RoA) to be longer than previously anticipated.
“Our medium-term strategic objective remains unchanged, and we continue to work towards achieving the guided level of RoA (return on assets). The prevailing external environment may influence the pace at which we get there,” he said. “We think the realisation of this aspiration could extend beyond the timeline we had originally envisaged.”
Bandhan Bank Q1 Result
Bandhan Bank on Tuesday reported a 35 per cent year-on-year rise in its net profit to Rs 502 crore for the first quarter of the 2026-27 financial year as against Rs 372 crore in the corresponding period last fiscal, PTI reported.
Net interest income (NII) for the April-June period grew 5.9 per cent to Rs 2,921 crore, compared to Rs 2,757 crore a year ago, while net total income rose 1.2 per cent to Rs 3,524 crore from Rs 3,483 crore in the corresponding period last year, according to PTI.
Gross advances grew 16.4 per cent year-on-year to Rs 1,55,555 crore as of June 2026, from Rs 1,33,625 crore a year earlier, the lender said. On a year-on-year basis, the retail book, excluding housing, grew 45 per cent, wholesale banking rose 38 per cent, while the housing loan book expanded 6 per cent, a statement said.
Asset quality showed sequential improvement, with gross non-performing assets (NPA) at 3.1 per cent and net NPA at 0.9 per cent in the quarter, against 3.3 per cent and 1 per cent, respectively, in the preceding three-month period. On a year-on-year basis, gross NPA improved by 182 basis points and net NPA by 43 basis points, the lender said.
The provision coverage ratio, including technical write-offs, stood at 85.9 per cent as of June 30, 2026. Provisions and contingencies, other than tax, for the quarter were at Rs 683 crore, down 40 per cent year-on-year, as per PTI. The bank’s capital adequacy ratio stood at 18.2 per cent, down from 19.4 per cent a year earlier. Return on assets was at 1 per cent and return on equity at 7.7 per cent for the quarter.
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