Business Business : Partha Pratim Sengupta-led Bandhan Bank on Friday reported a sharp 65 per cent year-on-year (YoY) decline in its net profit for the first quarter of the current financial year (Q1 FY26), with income falling to Rs 372 crore compared to Rs 1,064 crore in the same period of the previous fiscal (Q1 FY25).
The fall in profit was accompanied by a drop in the bank’s net interest income (NII), which declined 7.7 per cent to Rs 2,757.2 crore from Rs 2,986.6 crore in Q1 FY25, according to stock exchange filings. The bank’s net interest margin (NIM) stood at 6.4 per cent during the quarter. Bandhan Bank’s net revenue during the June quarter stood at Rs 3,483 crore, slightly lower than Rs 3,533 crore recorded in the same quarter a year ago. Net operating profit also declined 14 per cent year-on-year to Rs 1,668 crore from Rs 1,941 crore in Q1 FY25.
Commenting on the bank’s performance, Managing Director and Chief Executive Officer Partha Pratim Sengupta said the bank has outperformed sequentially on the back of strong growth in deposits and stable momentum in both retail and wholesale banking. He further added that although the overall operating environment remains challenging, the bank’s results reflect the resilience of its business and the robustness of its strategy.
As of June 30, Bandhan Bank’s total deposits grew 16 per cent year-on-year to Rs 1.55 lakh crore from Rs 1.33 lakh crore a year ago. Retail term deposits also witnessed strong growth, rising 34 per cent to Rs 63,661 crore. Retail deposits accounted for 68 per cent of the total deposit base. Gross advances during the quarter grew 6 per cent to Rs 1.34 lakh crore as against Rs 1.26 lakh crore in the same quarter a year ago. The bank had a customer base of 3.14 crore, supported by a wide distribution network of around 6,350 outlets and a workforce of over 73,000 employees.
