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Bandhan Bank shres in focus after strong Q2 profit and better operating efficacy — Here are the key monitorables - Published OnOct 29, 2026 | 07:06 IST - Last Updated OnOct 29, 2026 | 07:06 IST Bandhan Bank posted multi-fold profit growth and steady bad loan ratios, supported by stronger operating efficiency and credit expansion. However, sequential margin compression, a sharp drop in cheap retail deposits, and potential regulatory hits to fee income remain key headwinds. Find out how management plans to offset the expected revenue loss from third-party product distribution rules. Shares of Bandhan Bank are in focus on Thursday, October 29, after the company reported decent second quarter earnings, led by strong profit growth and better operating efficiency. However, its sequential margin compression and a sharp decline in current accounts savings account (CASA) remain key monitorables. The lender reported a profit after tax of ₹620 crore, up 23.9% from last quarter's ₹500 crore and up 455.7% from the previous fiscal's ₹110 crore. Its net interest income (NII) came in at ₹2,960 crore, up 14.4% from last year's ₹2,590 crore and up 1.4% from the previous quarter's 2,920 crore. Its pre-provisional operating profit (PPOP) increased 14.6% sequentially and 18.8% annually to ₹1,560 crore. Bandhan Bank's gross advances were at ₹1.58 lakh crore, up 1.8% sequentially and up 13.1% from last year's ₹1.4 lakh crore. Its deposits increased 4.7% from last quarter and 9.2% from the previous fiscal to ₹1.72 lakh crore. Its provisions were at ₹720 crore, up 5.1% from the prior quarter but dwn 37.7% from last year. Its net interest margin (NIM) contracted to 6.1% from 6.2% sequentially but was up 30 basis points from last year's 5.8%. Its gross non-performing assets (NPA) were at 3.1%, the same as previous quarter and down 191 basis points from 5% last year. Meanwhile, its net NPA also remained unchanged on a sequential basis at 0.9% but was down 45 basis points from last year's 1.4%. The lender's CASA declined by 269 basis points to 26.7% from 29.4% in the quarter-ago period, and its fresh slippages increased sequentially. Guidance Bandhan Bank's management, in its post-earnings conference call, maintained its loan growth guidance for the financial year 2027 at 14%. It expects the bank's emerging entrepreneurs business (EEB) growth to be 8-10% in the second half of this fiscal. It has guided for NIM of 6.1-6.2% and expects improvement from rate transmission in the fourth quarter. It expects return on assets to be 1.2% to 1.4% by the fourth quarter and its medium-term target is 1.6% to 1.8%. The management maintained its opex/assets guidance at 4.2%. It expects housing loans growth recovery from the fourth quarter. On another note, the lender has estimated an annual hit of around ₹200 crore to its income from selling insurance as well as third-party products if the IRDAI's proposed changes to distribution economics are to take effect in their present form. Its MD and CEO Partha Pratim Sengupta said third party income could fall by about ₹200 crore on an annual basis, adding that the lender will be able to recover as it shifts its focus to other areas, Mint reported, quoting Sengupta speaking at a media call on Wednesday post its results announcement. Stock reaction Shares of Bandhan Bank ended the previous session 2.3% up at ₹155.36 apiece. The stock has fallen 16.2% in the past month but is up 7.8% this year, so far. Also Read: Diwali Stock Picks: SBI Securities bets on these 11 names from Tata Steel to Sky Gold
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