Summary:
Bandhan Bank reported Q2FY27 standalone net profit of ₹621.75 crore, up 455.8% year on year. Lower provisions, improved asset quality and 14.4% growth in net interest income supported earnings, while advances and deposits expanded during the September quarter.
Bandhan Bank Limited (NSE: BANDHANBNK, BSE: 541153) announced a sharp increase of 455.8% YoY in standalone net profit to ₹621.75 crore for Q2FY27, as against ₹111.87 crore in the corresponding quarter of the previous year. Better asset quality, higher interest income and lower bad loan provisions helped the strong growth in earnings. The bank also saw growth in advances and deposits in the September quarter.
Bandhan Bank Q2FY27 Results: Profit Soars 455.8%
Bandhan Bank's total income for the quarter ended September 30, 2026, was ₹6,458.42 crore, against ₹5,900.27 crore in Q2FY26, a growth of 9.5% YoY.
Interest income rose 7.5% to ₹5,753.56 crore. Net interest income (NII) was up about 14.4% to ₹2,960 crore.
| Financial metrics | Q2FY27 | Q2FY26 | % YoY change |
| Total income | ₹6,458.42 crore | ₹5,900.27 crore | +9.5% |
| Interest income | ₹5,753.56 crore | ₹5,353.83 crore | +7.5% |
| Net interest income | ₹2,960 crore | ₹2,589 crore | +14.4% |
| Net profit | ₹621.75 crore | ₹111.87 crore | +455.8% |
| Earnings per share | ₹3.86 | ₹0.69 | +459.4% |
Q1FY27 net profit grew 23.9% QoQ to ₹501.67 crore. Also, total income rose 3.6% on a sequential basis.
Lower Bad Loans, Provisions Propel Profit Growth
The biggest improvement came in asset quality.
Gross non-performing assets (GNPA) fell to 3.11% of gross advances from 5.02% in Q2FY26 and net NPA improved to 0.92% from 1.30%.
Falling bad loans meant the bank had to set aside less to cover potential credit losses.
The provisions and contingencies fell by about 37.8% YoY to ₹717.54 crore against ₹1,153 crore.
This reduction helped increase the net profit sharply.
The bank’s net interest margin, or NIM, rose to 6.1% from 5.8% a year earlier, reflecting stronger earnings from its lending business.
Its provision coverage ratio, net of write-offs, stood at 86.7% as of September 30, 2026.
Loan Book 13% Higher; Deposits 9% Higher
Bandhan Bank continued to expand its lending business in Q2FY27.
Gross advances grew 13% YoY to around ₹1.58 lakh crore while total deposits rose 9% to ₹1.73 lakh crore.
Secured advances grew 18% YoY and contributed more than 57% to the loan portfolio.
Growth was especially strong in retail lending excluding housing, up 42%, and wholesale banking advances grew 32%.
Housing loans went up by 4%, and the emerging entrepreneurs business went up by 2%.
The bank's capital adequacy ratio stood at 18.32% against 18.23% a year earlier.
Bandhan Bank Shares Climbed Ahead of Q2 Results?
Bandhan Bank shares closed 2.27% up at ₹155.36 on the NSE on October 28, 2026, at ₹151.91 in the previous close.
The stock hit a high of ₹156.98 and a low of ₹150.89 during the intraday.
But the quarterly results were released after the market had closed. Hence, the October 28 increase cannot be attributed directly to the earnings announcement.
The improvement in profitability, falling provisions and stronger loan growth offer important ingredients to gage the stock’s subsequent performance.
Summary
Bandhan Bank’s Q2FY27 results reflected a turnaround in profitability, backed by better asset quality and lower credit costs.
Core operations are improving with better interest income and expanding secured lending, although the fivefold profit increase is off a low base. Deposit growth, loan quality and future provisioning needs will be important to sustaining this recovery.
