Bandhan Bank on Thursday reported a 51.7% decline in its net profit to Rs 206 crore for the quarter ended December 2025 due to lower income and higher expenditure, missing analyst estimates of Rs 397 crore.
“Last year, we were fortunate. We got the CGFMU (credit guarantee funds for micro units) funds, and for that reason, we were able to adjust some one-off expenses. If we take out both, the profit was Rs 129-130 crore,” the bank’s management said in a post-earnings press conference.
The net interest income moderated by 4.5% on year to Rs 2,688 crore in the reporting quarter, with net interest margins expanded to 5.90% from 5.80% a quarter ago. Analysts had pegged the net interest income for the reporting quarter at Rs 2,778 crore.
Other Income Volatility Observed
Other income fell by nearly 38% on year to Rs 691 crore. However, on a sequential basis, other income rose by 27%. The bank said other income could become an important in revenue generation, as it plans to grow the non-fund businesses like bank guarantees and improving commission fees, among others.
Gross advances were up 10% on year and total deposits grew 11.2%. Within gross advances, retail assets increased 57.1% and wholesale assets rose 32.3%.
Retail Deposits Increase Steadily
Within deposits, the share of current account and savings account (CASA) stood at 27.3%, down 70 basis points (bps) sequentially. Retail deposits were up 17.2% on year to Rs 1.13 lakh crore.
The asset quality improved on a sequential basis for the Kolkata-based bank. The gross non-performing asset (NPA) ratio stood at 3.3%, down 169 bps on quarter, and the net NPA ratio stood at 1%, down 38 bps from the September quarter. Provisions and contingencies reduced 16% on year to Rs 1,155 crore in the reporting quarter.
“The SMA-0 book has come down by Rs 400 crore and the SMA-2 book has reduced by Rs 25 crore. There is some increase in the SMA1 book, which we are working at,” the management said. “Within one-two years, we will have a very healthy book.”
Shares of Bandhan Bank closed 3.6% higher at Rs 143.00 on the National Stock Exchange.