Bandhan Bank shares surge most in over 9 months despite reporting 52% decline in profit; here is why

Bandhan Bank shares posted their best single-day gain in over nine months on Friday, January 23, despite reporting a slump in profitability in December quarter. Bandhan Bank shares rose as much as 5.5%, its biggest single day gain since April 21, 2025, to hit an intraday high of ₹150.50 on the BSE. On the National Stock Exchange (NSE), Bandhan Bank climbed as much as 5.8% amid spike in trading volumes.

Bandhan Bank shares were witnessing higher than usual trading activity as volumes spiked by 2.6 times to 2.49 crore shares compared with an average trading volumes of 97.7 lakh shares on the NSE.

On the BSE, as many as 17.32 lakh shares changed hands compared with an average of 2.09 lakh shares traded daily in the past two weeks.

Bandhan Bank Q3 earnings

Bandhan Bank's net profit in October-December period fell 52% to ₹206 crore from ₹426 crore in the same period last year. However, on a sequential basis net profit jumped 84% from ₹112 crore in the year-ago period.

The Kolkata-based lender's net interest income or the difference between interest earned on loans and expended on deposits fell 4.5% to ₹2,688 crore compared with ₹2,814 crore in the year-ago period.

The bank's asset quality showed improvement in during the quarter as its gross non-performing assets (NPAs), as a percentage of total advances, came in at 3.33% at the end of December quarter compared with 4.68% in the same period last year.

Bandhan Bank's total advances rose 10% to ₹1.45 lakh crore and its deposits grew 11% annually to ₹1.57 lakh crore.

The Bank’s distribution network spans more than 6,350 outlets. The Bank currently has more than 74,500 employees.

"Bandhan Bank’s third quarter performance over the last quarters reflects the strengthening fundamentals and steady turn around. In Q4, we are set to accelerate multiple digital initiatives aimed at enhancing customer experience, operational efficiency, and scalability. We remain fully committed to building a strong, more resilient and more diversified bank. These efforts position us well for sustainable and profitable growth going forward,” said Partha Pratim Sengupta, Bandhan Bank's MD and CEO.

Global investment firm CLSA said that Bandhan Bank's Pre-Provision Operating Profit (PPoP) was 8% higher than its estimates driven by in-line core total income and lower-than-expected core operational expenditure.

CLSA added that credit costs were not higher because of slippages but they were higher because bank sold a ₹3,200 crore bad loan portfolio to an asset reconstruction company (ARC).

Slippages moderated from ₹1,600 crore to ₹1,300 crore sequentially due to an improvement in MFI book.

As of 10:45 am, Bandhan Bank shares traded 4.93% higher at ₹149.49, outperforming the NIFTY SMallcap 100 index which was down 0.22%.