Bandhan Bank reported a 34.8% year-on-year rise in net profit to ₹501.6 crore for Q1 FY27.
Net interest income grew 6%, while gross advances increased 16% from a year earlier.
The bank also reported an improvement in asset quality, with both gross and net NPA ratios declining from the previous quarter.
Bandhan Bank Q1 Profit Rises 35% YoY to ₹502 Cr as Asset Quality Improves
The private lender reported higher profit for the June quarter as loan growth remained strong and asset quality improved on a sequential basis
Summary
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Bandhan Bank on Tuesday reported a 34.8% year-on-year (YoY) increase in net profit to ₹501.6 crore for the first quarter of FY27, compared with ₹372 crore in the same period last year.
Net interest income (NII) rose 6% YoY to ₹2,921 crore, while net revenue increased 1.2% to ₹3,524 crore during the quarter. The bank's net interest margin (NIM) remained unchanged sequentially at 6.2%.
Gross advances stood at ₹1.56 lakh crore as of June 30, 2026, up 16% from a year earlier, while total deposits rose 7% to ₹1.65 lakh crore.
Asset Quality Shows Sequential Improvement
Bandhan Bank reported an improvement in asset quality during the quarter, with both gross and net non-performing assets declining compared with the March quarter.
Gross non-performing assets (GNPA) fell to ₹4,881 crore from ₹5,019.5 crore in the previous quarter, while net non-performing assets (NNPA) declined to ₹1,412 crore from ₹1,452 crore.
The gross NPA ratio improved to 3.15% from 3.27%, while the net NPA ratio eased to 0.93% from 0.97% on a quarter-on-quarter basis. Provisions for the quarter stood at ₹682.5 crore, lower than ₹1,147 crore in the year-ago period.
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Loan Growth Remains Strong
The bank continued to expand its lending portfolio during the quarter, led by growth in secured and retail lending.
Secured advances increased 27% YoY and accounted for nearly 57% of the total loan book. Retail advances, excluding housing loans, grew 45%, while wholesale banking advances rose 38%. The housing loan portfolio expanded 6% during the period.
Retail deposits, including current account savings account (CASA) balances and retail term deposits, rose 16% YoY and accounted for 74% of total deposits. CASA deposits stood at ₹48,479 crore, with the CASA ratio remaining above 29%.
CEO Highlights Growth Strategy
Commenting on the bank's performance, Managing Director & CEO Partha Pratim Sengupta said, "Our Q1 FY2026-27 performance reflects the resilience of Bandhan Bank's franchise, the commitment of our teams, and the trust our stakeholders continue to place in us."
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He added that the bank remains focused on customer-centric and digitally enabled growth, with plans to strengthen its distribution network, expand its product offerings and leverage data-driven insights to create greater value for customers and stakeholders while driving sustainable, balanced and future-ready growth.
Bandhan Bank reported a return on assets (RoA) of 1% and a return on equity (RoE) of 7.7% for the quarter. As of June 30, 2026, the lender operated nearly 6,400 outlets and had a workforce of more than 74,500 employees.