Bandhan Bank shares hit the 10% lower circuit on Wednesday after the private lender reported its Q1FY27 earnings and lowered its return on assets (RoA) guidance, citing an uncertain global macro environment and heightened competition for deposits.
The stock remained locked at the 10% lower circuit at Rs 187.95 on the NSE. The lender reported a 35% year-on-year (YoY) rise in net profit to Rs 502 crore for Q1FY27, compared with Rs 372 crore in the year-ago quarter. The profit growth was driven by a 41% decline in provisions to Rs 683 crore during the quarter.
Operating profit, however, declined 19% YoY to Rs 1,358 crore, while net interest income (NII) rose nearly 6% to Rs 2,920 crore. Net interest margin (NIM) contracted 16 basis points to 6.2%.
Bandhan Bank's asset quality improved, with the gross non-performing asset (GNPA) ratio declining to 3.15% at the end of June from 4.96% a year earlier. Managing Director Partha Pratim Sengupta attributed the rise in operating expenses to higher staff costs under the new labour cost framework and a 65% increase in technology expenses following the West Asia crisis. However, lower credit costs helped the bank report a higher net profit.
Also read | Bandhan Bank Q1 profit jumps 35% as provisions decline sharply
The brokerage also cut its FY27 and FY28 earnings estimates by 14% and 6%, respectively, and now expects the bank to deliver an RoA of 1% in FY27 and 1.4% in FY28.
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Bandhan Bank shares had fallen over 4% in the week through Tuesday's close at Rs 208.83. Despite the recent decline, the stock is still up about 44% so far in 2026. Over the past year, it has gained nearly 15%, though it remains down 5% over three years and 32% over five years. The bank's market capitalisation stands at Rs 33,430 crore.
