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Bandhan Bank reported a strong financial performance for the first quarter of FY27, with net profit rising 35% year-on-year to INR 502 crore, supported by growth in lending and improved asset quality. Net interest income also increased during the quarter, while gross advances recorded double-digit growth across key business segments. The bank reduced provisions significantly, maintained a healthy capital position, and continued to strengthen its retail and digital banking business. The board also approved the appointment of an interim Chief Financial Officer, effective from September 26, 2026.
Bandhan Bank has reported a 35% year-on-year increase in its standalone net profit to INR 502 crore for the first quarter of FY27, compared with INR 372 crore recorded in the corresponding period of the previous financial year. The improved profitability was supported by higher loan growth, better asset quality and a decline in provisioning during the quarter.
The private sector lender's net interest income (NII), which represents the difference between interest earned and interest paid, increased 5.9% year-on-year to INR 2,921 crore from INR 2,757 crore. Net total income also witnessed a modest rise of 1.2% to INR 3,524 crore compared with INR 3,483 crore reported in the same period last year.
The bank continued to expand its loan portfolio during the quarter. Gross advances rose 16.4% year-on-year to INR 1,55,555 crore from INR 1,33,625 crore in the corresponding quarter last year.
Among individual business segments, the retail loan portfolio, excluding housing loans, recorded the highest growth of 45% year-on-year. Wholesale banking advances increased 38%, while the housing loan portfolio expanded by 6%, reflecting continued diversification beyond its traditional microfinance business.
Bandhan Bank also reported an improvement in asset quality compared with the previous quarter. Gross non-performing assets (GNPA) declined to 3.1% from 3.3% in the preceding quarter, while net non-performing assets (NNPA) improved to 0.9% from 1%.
On an annual basis, the bank said gross NPA improved by 182 basis points, while net NPA improved by 43 basis points. The provision coverage ratio, including technical write-offs, stood at 85.9% at the end of the quarter, indicating a strong buffer against stressed assets.
Provisions and contingencies, excluding tax, fell sharply by 40% year-on-year to INR 683 crore, contributing to higher profitability during the reporting period.
The lender maintained a healthy capital position despite a slight moderation. Its capital adequacy ratio stood at 18.2%, compared with 19.4% a year earlier. Return on assets for the quarter was 1%, while return on equity stood at 7.7%.
Commenting on the quarterly performance, Managing Director and Chief Executive Officer Partha Pratim Sengupta said the bank's first-quarter results reflected the resilience of its franchise, the commitment of its employees and the continued confidence shown by its stakeholders. He added that the bank remained focused on strengthening its business while delivering sustainable growth.
Bandhan Bank also stated that it will continue to focus on customer-centric and digitally enabled growth by expanding its distribution network and strengthening its product offerings. Over the past few years, the bank has been increasing its presence across retail banking, housing finance and wholesale lending to diversify its revenue streams and reduce dependence on the microfinance segment.
Separately, the bank's board approved the appointment of Vinay Jain as Interim Chief Financial Officer with effect from September 26, 2026. He will hold the position until March 31, 2027, following the resignation of Rajeev Mantri.
Source PTI
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