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 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%.
4 July 2026
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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%.
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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."
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.
