Bandhan Bank Shares Surge 9% on Strong Q4 Earnings and Improved Asset Quality

Bandhan Bank Shares Surge 9.4% After Reporting Strong Q4 FY26 Financial Performance

Shares of Bandhan Bank surged as much as 9.4 percent in early trade on Wednesday, April 29, following the lender's strong Q4 FY26 financial performance. The lender's stock was trading at Rs 195.4 in morning trade, a significant increase from the Rs 178 it ended at on Tuesday, down 2.13 percent ahead of the results announcement.

Bandhan Bank's Q4 FY26 Financial Performance Highlighted by Sharp Rise in Profitability and Improved Asset Quality

Bandhan Bank's January-March quarter results were marked by a notable rise in profitability and continued improvement in asset quality. The bank reported a 68 percent year-on-year jump in net profit to Rs 534 crore for Q4FY26, driven by lower credit costs and higher fee income, even as core income growth remained modest. Net interest income (NII) rose 1.4 percent to Rs 2,795.4 crore.

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The bank's asset quality improved further, with gross NPA easing to 3.27 percent from 3.33 percent in the December quarter, while net NPA declined to 0.97 percent from 0.99 percent sequentially. Collection efficiency strengthened to 98.9 percent, reflecting better recoveries.

Business Front Sees Growth in Loans and Advances, Deposits

On the business front, loans and advances grew 12.6 percent year-on-year to Rs 1.54 lakh crore, while deposits rose 10 percent to Rs 1.66 lakh crore. Retail deposits continued to gain share, rising 17.7 percent year-on-year and accounting for 73.67 percent of total deposits, indicating a shift towards a more granular liability franchise. The bank also reported a comfortable liquidity coverage ratio of 131.76 percent.

Brokerages Maintain Positive Stance on Bandhan Bank Shares

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Brokerages remained broadly positive on Bandhan Bank shares, with most maintaining buy or outperform ratings. They cited improving asset quality, lower credit costs and a gradual recovery in profitability.

Management Indicated Steady Outlook for Loan Growth and Margin Improvement

Management indicated a steady outlook, targeting loan growth of 14-15 percent with a broadly stable mix. It also sees further margin improvement of 10-20 basis points and a pick-up in fee income.