Bandhan Bank Ltd: Q1 Results and Market Reaction

Bandhan Bank Ltd, a prominent player in the Indian banking sector, has recently reported a significant decline in its first-quarter (Q1) net profit, which has led to a noticeable impact on its stock performance. The bank’s net profit fell by 65% year-on-year (YoY) to ₹372 crore for the quarter ending June 30, 2025, compared to ₹1,063 crore in the same quarter of the previous fiscal year. This decline is attributed to rising bad loans and a decrease in net interest income (NII), which fell by 7.7%.

The bank’s total income for Q1 FY26 stood at ₹6,201.49 crore, marking a marginal increase of 2.28% from ₹6,081.73 crore in Q1 FY25. Despite the slight rise in total income, the earnings per share (EPS) dropped to ₹2.31 from ₹6.60 in the corresponding quarter of the previous year.

In response to the earnings report, Bandhan Bank’s shares experienced a 4% decline, contributing to its position among the top midcap losers on the Nifty Midcap 150 index. The stock’s close price on July 17, 2025, was ₹187.02, with a 52-week high of ₹222.31 and a low of ₹128.16.

Despite the negative earnings surprise, Investec has upgraded Bandhan Bank’s stock rating to “Hold,” citing an improved credit outlook. Additionally, SEBI RA Rajneesh Sharma has indicated that technical charts signal a potential recovery for the bank’s stock.

Bandhan Bank’s diverse business segments include Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business. The bank offers a range of products and services, such as various loan schemes, savings accounts, and digital banking solutions.

As the banking sector continues to navigate a challenging environment, Bandhan Bank’s performance in the upcoming quarters will be closely monitored by investors and analysts.