"Higher staff expenses on account of the new labour cost and a 65% rise in tech cost following the West Asia crisis led to the surge in expenditure," Bandhan Bank's MD said.

Last Updated: Jul 22, 2026, 09:53:00 AM IST

Shares of Bandhan Bank crashed 10% to hit the lower circuit on Wednesday after the private lender released its Q1 earnings, reducing its return on assets (RoA) guidance on the back of uncertain global macros and higher competitive intensity in deposit pricing.

Bandhan Bank shares remained locked in the 10% lower circuit at Rs 187.95 apiece on NSE, after the company released its results for the April-June quarter of the financial year 2027 in the post market hours of Tuesday. It reported a 35% year-on-year (YoY) rise in net profit to Rs 502 crore in Q1 FY27, from Rs 372 crore in the corresponding quarter of the previous financial year. This occurred as provisions declined 41% to Rs 683 crore during the quarter under review.

Operating profit for Q1 however declined nearly 19% YoY to Rs 1,358 crore, while net interest income (NII) increased nearly 6% YoY to Rs 2,920 crore. Net interest margin (NIM) fell 16 bps to 6.2%.

Bandhan Bank’s asset quality improved, with gross non-performing assets ratio falling to 3.15% at the end June against 4.96% a year prior. "Higher staff expenses on account of the new labour cost and a 65% rise in tech cost following the West Asia crisis led to the surge in expenditure," managing director Partha Pratim Sengupta said. "The lower credit cost helped the bank book higher net profit," he said.

Also Read | Bandhan Bank Q1 profit jumps 35% as provisions decline sharply

The NII growth of 6% was inline with expectation. RoA guidance of 1.6-1.8% by the exit of Q4 FY27 has been cut to 1.2%-1.4% on the back of uncertain global macros and higher competitive intensity in deposit pricing, a combination of which is expected to have an adverse impact of 30 bp on NIMs and 10 bp on opex, the brokerage highlighted.

Bandhan Bank shares fell more than 4% in a week to close at Rs 208.83 apiece on Tuesday. The stock has overall gained around 44% in 2026 so far.

In the longer term, the shares of the private lender have gained nearly 15% in one year, but fell 5% in three years and 32% in five years. The company has a market capitalisation of Rs 33,430 crore.

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