Bandhan Bank Shares Slide as Q3 Net Profit Falls 52% YoY
We from the markets desk start with a clear fact: Bandhan Bank’s Q3 net profit plunged by about 52% compared with the same quarter last year. The Kolkata-based lender reported a profit of roughly ₹205–206 crore for the quarter ended December 2025, down sharply from around ₹426–427 crore a year ago. This sharp fall surprised many investors.
Q3 Financial Summary
- Net Profit (Q3 FY26): Net profit was around ₹205–206 crore, down 52% YoY.
- Total Income: Total income dropped to ₹6,122 crore from ₹6,591 crore last year.
- NII Trend: Net Interest Income (NII) was lower YoY, which hit profitability.
- NIM Level: Net Interest Margin (NIM) was around 5.9%.
- NII Meaning: NII is what banks earn from lending after paying interest on deposits. A fall in NII usually squeezes profits.
- YoY Weakness: Even though QoQ improved in some areas, the YoY numbers were weak.
What Caused the Profit Drop?
- Lower Income: Core earnings and other income were lower compared to last year.
- One-Time Income Missing: Last year included a ₹538 crore one-time gain, which did not repeat this quarter.
- Interest Income Fall: Lower NII directly reduced the overall profit.
- Higher Costs: Expenses and provisions increased compared to last year, reducing net profit.
- Operating Profit Fall: Operating profit also dropped, showing pressure on the core business.
Market Reaction & Share Price Movement
- Initial Drop: Bandhan Bank shares slid initially after the Q3 results.
- Mixed Market Mood: Markets showed mixed emotions due to both concerns and optimism.
- Broker Upgrade: Motilal Oswal and JM Financial upgraded the stock to “buy”, which lifted prices by around 5%.
- Valuation Optimism: The market balanced the profit drop with better valuation views.
Management’s Explanation & Outlook
- Asset Quality Focus: The bank reported improved asset quality this quarter.
- NPA Improvement: Gross NPAs reduced, showing fewer bad loans.
- Deposit Growth: Deposits grew about 11% YoY, supporting stability.
- CASA Strength: The CASA ratio remained healthy, which helps reduce funding costs.
- Sequential Profit Rise: Profit increased 84% QoQ, showing improvement vs Q2.
- Future Strategy: Management is focusing on digital growth and revenue diversification.
Key Risks & What Investors Should Watch
- Asset Quality Risk: If NPAs rise again, provisions will increase,e and profits will fall.
- NII Pressure Risk: If NII keeps falling, earnings will remain under pressure.
- CASA Risk: A dropin then CASA ratio will raise funding costs and squeeze margins.
- Macro Risk: Economic slowdown or high rates can reduce credit demand and loan growth.
- Market Sentiment Risk: Broker upgrades or downgrades can cause share price swings.
Conclusion
Bandhan Bank’s Q3 results show clear profit pressure, with net profit falling by over 50%. The drop was mainly due to lower core income and the absence of one-time gains. While asset quality and deposits improved, the bank still needs to strengthen margins and control costs. Overall, Bandhan Bank shares may stay volatile, and investors should watch the next quarters closely for recovery signs.
FAQS
Profit fell mainly because income was lower, and last year’s one-time gain of ₹538 crore did not repeat.
Net profit fell by about 52% YoY, to around ₹205–206 crore.
Yes, shares slid initially, but broker upgrades helped lift the price later.
Investors should track asset quality, NII trends, and deposit/CASA growth in the next quarters.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
