Bandhan Bank Shares Reach 52-Week High Following Q4 Earnings, Brokerages Remain Optimistic on Private Sector Lender
Bandhan Bank Reports Strong Q4FY26 Performance, Share Price Surges 10%
Bandhan Bank's share price reached a 52-week high of ₹196.10 on April 29, following the private sector lender's robust performance in the March quarter. The bank's asset quality trajectory and balance sheet growth have improved investor sentiment, driving the sharp move in the stock.
Profit Jumps on Lower Provisions, Asset Quality Improves
Bandhan Bank reported a net profit of ₹534.14 crore for the March quarter, a significant 68.02% year-over-year (YoY) increase from ₹317.90 crore in Q4FY25. Net interest income (NII) rose 1.4% YoY to ₹2,795.6 crore, while total revenue increased 3.2% to ₹3,567 crore.
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| Metric | Q4FY26 | Q4FY25 | Change |
|---|---|---|---|
| Net Profit (₹ crore) | 534.14 | 317.90 | 68.02% |
| Net Interest Income (₹ crore) | 2,795.6 | 2,756.5 | 1.4% |
| Total Revenue (₹ crore) | 3,567 | 3,450 | 3.2% |
Margins, however, softened, with net interest margin (NIM) declining to 6.2% in Q4FY26 from 6.7% in the year-ago period, indicating pressure from funding costs and yield dynamics. Asset quality improved sequentially, with gross non-performing assets (NPAs) easing to 3.27% from 3.33% in the previous quarter, while net NPAs declined to 0.97% from 0.99%.
Provisions and contingencies fell sharply by 46.3% YoY to ₹677 crore, supporting profitability during the quarter. On the balance sheet front, deposits grew 10% to ₹1.66 lakh crore, while gross advances increased 13% to ₹1.54 lakh crore as of March 2026.
Full Year FY26 Performance
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For the full year FY26, net profit declined 55.43% to ₹1,223.56 crore compared to ₹2,745.30 crore in FY25. Total operating income also slipped 1.18% to ₹21,689.11 crore from ₹21,948.23 crore in the previous year. The bank declared a dividend of ₹1.5 per equity share, translating into a 15% payout on a face value of ₹10 per share.
Bandhan Bank Share Performance
The stock's rally has been notable, with the stock now up 46% from its 52-week low of ₹134.
Investor Takeaway
Investors should remain optimistic about Bandhan Bank's asset quality trajectory and balance sheet growth.
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