Bandhan Bank shares tank over 8% post Q2 earnings; repo rate cut hit profitability, numbers below internal expectations, says MD

The bank said its post-tax profit decreased to ₹112 crore during the second quarter of the current financial year as compared to ₹937 crore seen in the similar previous period. This shows a whopping 88% decline in profit during the quarter under review.

Operating profit of the bank also decreased to ₹1,310 crore in the current second quarter, as against ₹1,855 crore logged in the similar previous quarter.

MD & CEO of Bandhan Bank Partha Pratim Sengupta told reporters that the second quarter results were transitional and the lender's profitability will improve in the coming months.

"The repo rate cut has had an impact on the profitability of the bank. There has been a repricing of deposits of the bank. The focus of the bank is on CASA (current account, savings account) growth. The results of the second quarter are below internal expectations," Sengupta said.

Sengupta said that the growth of the microfinance portfolio remained subdued during the second quarter.

"For the bank, the share of secured advances continued to rise. There has been a decline in bulk deposits," Sengupta said.

"The gross NPA and the net NPA remained stable, and the capital position of the bank is strong. The focus is on prudent risk management. The bank has transitioned itself from a microfinance institution (MFI) to a full-service commercial lender," Sengupta added.

The asset quality is stable, the MD added.

The yields on microfinance loans were higher, Sengupta said, adding that the secured segment of the loans was growing faster.

Net interest income (NII) of the bank during the second quarter of 2025-26 stood at ₹2,589 crore compared to ₹2,934 crore seen in the similar previous period.

This translates to a fall of 11.75% on a year-on-year (YoY) basis.

Provisions and other contingencies charged to the profit and loss during the second quarter of 2025-26 were ₹1,153 crore as compared to ₹606 crore seen in the previous similar quarter.

Provision coverage ratio (PCR) as of September 30, 2025, stood at 73.7%.

About Bandhan Bank

Bandhan Bank Limited is a private sector bank. The Kolkata-headquartered company was established as a microfinance institution in 2001. The bank, in its earlier form, was focused on providing loans to small traders and marginal businesses in Kolkata. The microfinance institution was established to help the traders to get rid of high-interest loans offered by moneylenders. Later, it emerged as one of the largest players in the microfinance market.

It acquired a non-banking financial company (NBFC) in 2006 and established Bandhan Financial Services Private Limited. It became the largest microfinance institution (MFI) in India in 2010. Bandhan Bank started operations in 2015 after it became India’s first microfinance institution to get a universal banking licence.

In 2018, it emerged as the eighth most-valued bank in India based on market capitalisation on the day of its listing on stock exchanges. In 2019, Bandhan Bank acquired HDFC Limited's stake in GRUH Finance, a leading affordable housing finance company in India.

Bandhan Bank reached the milestones of ₹1.5 lakh crore and ₹2 lakh crore of total business in FY2021 and FY2022, respectively.