Bandhan Bank Share Price Dips 5%; Deposits Up 11% YoY in Q2 FY26 Results

Bandhan Bank announced its financial results for the quarter and half year ended September 30, 2025, showcasing steady growth in its core banking operations.

The bank’s deposits rose 11% year-on-year (YoY) to ₹1.6 lakh crore, while gross advances grew 7% YoY to ₹1.4 lakh crore. The Gross Non-Performing Assets (GNPA) and Net NPA remained stable at 5.0% and 1.4%, respectively. The Capital Adequacy Ratio, including profits, stood at a healthy 18.6%, reflecting a strong capital position.

As of September 2025, secured advances increased by 25% YoY and accounted for nearly 55% of total advances, compared to 47% a year ago. The bank’s focus on diversification was evident as non-EEB (Emerging Entrepreneurs Business) advances grew 24% YoY and now contribute 63% of the loan book. Among segments, retail (excluding housing) grew 66%, wholesale banking by 27%, and housing loans by 12%, while EEB declined 13% YoY.

Financial Performance for H1 FY26

For the half year ended September 30, 2025, Bandhan Bank’s net total income stood at ₹6,618 crore, compared to ₹7,075 crore in the same period last year. The Net Interest Income (NII) was ₹5,346 crore, down from ₹5,920 crore in H1 FY25, reflecting a moderation in interest margins. The Net Interest Margin (NIM) for the period stood at 6.1%.

Operating profit for H1 FY26 declined to ₹2,979 crore from ₹3,796 crore a year ago, mainly due to higher provisions and contingencies, which rose to ₹2,299 crore from ₹1,129 crore in H1 FY25. Consequently, profit after tax for H1 FY26 dropped sharply to ₹484 crore from ₹2,001 crore in the same period last year. The Return on Assets (RoA) stood at 0.5%, while Return on Equity (RoE) was at 3.8% on an annualised basis.

Q2 FY26 Quarterly Highlights

In Q2 FY26, the bank’s net total income was ₹3,135 crore compared to ₹3,543 crore in Q2 FY25. NII stood at ₹2,589 crore against ₹2,934 crore a year earlier. Operating profit came in at ₹1,310 crore versus ₹1,855 crore in the previous year’s corresponding quarter. Provisions rose significantly to ₹1,153 crore from ₹606 crore, leading to a decline in quarterly profit after tax to ₹112 crore compared to ₹937 crore in Q2 FY25.

Network Expansion and Customer Growth

Bandhan Bank continued to expand its footprint, with its distribution network reaching nearly 6,350 outlets across India. The bank added about 9 lakh new customers during the quarter, taking the total customer base to over 3.23 crore. Its workforce also grew, with more than 73,500 employees serving customers nationwide.

Speaking on the Bank’s performance, Partha Pratim Sengupta, MD & CEO, said, “Bandhan Bank's current quarter performance reflects a transitional phase for the bank as we continue to realign towards a more diverse and resilient portfolio. As we drive this transformation, we are looking to achieve a balanced profitable growth to drive sustainable long term value creation for our stakeholders. By focusing on innovation in technology, refining our processes, and enhancing products and people capabilities, we are well-positioned to drive the next phase of growth for Bandhan Bank 2.0.”

Bandhan Bank Share Price Performance

On October 31, 2025, Bandhan Bank share price (NSE: BANDHANBNK) opened at ₹164.10, down from its previous close of ₹170.58. At 10:40 AM, the share price of Bandhan Bank was trading at ₹160.90, down by 5.67% on the NSE.

Also Read: Best Bank Stocks in November 2025!

Conclusion

While Bandhan Bank’s deposit and loan portfolios showed healthy growth and improved asset mix, profitability was affected by higher provisions and subdued income.

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