Bandhan Bank Q1 Profit Plunges 65% to ₹372 Crore

Bandhan Bank on Friday reported 65 per cent decline in net profit at ₹372 crore for the first quarter of this financial year on rising bad loans and sliding core income.

The Kolkata-based private sector bank had earned a net profit of ₹1,063 crore in the same quarter of the previous fiscal year.

Total income rose to ₹6,201 crore during the June quarter of 2025-26, from ₹6,082 crore in the same period of FY25, Bandhan Bank said in a regulatory filing.

However, interest earned by the bank declined to ₹5,476 crore from ₹5,536 crore in June quarter FY25.

Net interest income (NII) as of Q1 FY26 also slipped to ₹2,757 crore as against ₹2,987 crore in Q1 FY25.

During the period, operating profit of the bank also declined to ₹1,668 crore, as compared to ₹1,941 crore in the same quarter a year ago.

The bank's asset quality deteriorated as gross non-performing assets (NPAs) rose to 4.96% of gross advances at the end of the June quarter, from 4.23% a year ago.

Similarly, net NPAs, or bad loans, also increased to 1.36%, as against 1.15% in the year-ago period.

As a result, provision and contingencies doubled to ₹1,147 crore as against ₹523 crore in the same period a year ago.

Provision Coverage Ratio (PCR) as of June 30, 2025 was 73.7% Including write-off, PCR stands at 87.3%, it said.

Speaking on the Bank’s performance, MD & CEO Partha Pratim Sengupta said, "While the operating environment poses certain challenges, our performance reflects the underlying resilience of our business and the strength of our strategic direction. We remain focused on prudent risk management, operational efficiency, and delivering long-term value for our customers and stakeholders."