Bandhan Bank profit jumps as asset quality improves

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Bandhan Bank Limited (

) reported net profit of ₹622 crore in Q2 FY27, compared with ₹112 crore in the corresponding quarter last year. The increase reflects stronger operating performance and lower provisioning requirements. What happened? Net interest income (NII) grew 14% year-on-year to ₹2,960 crore. Net total income increased 17% to ₹3,665 crore, while operating profit rose 19% to ₹1,556 crore. Provisions and contingencies declined 38% to ₹718 crore from ₹1,153 crore a year earlier. The gross non-performing asset (GNPA) ratio improved to 3.11% from 5.02%, while the net NPA ratio fell to 0.92% from 1.37%. Gross advances grew 13% to ₹1.58 lakh crore, while total deposits increased 9% to ₹1.73 lakh crore. Secured loans accounted for over 57% of total advances. Why does it matter? The sharp profit increase reflects both higher core income and lower credit provisions. Improving asset-quality ratios suggest progress in managing stressed loans. However, provisioning trends and the performance of the microfinance-focused emerging entrepreneurs business remain important to monitor. My view The results indicate a recovery in profitability alongside better reported asset quality. Sustaining this improvement will depend on continued loan growth, deposit mobilisation and effective credit-risk management. What I am watching next I would track fresh loan slippages, credit costs, secured-loan growth, deposit growth and net interest margins to assess whether the recovery is sustainable. No Recommendations Source: The Economic Times Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Bandhan Bank Limited.