Bandhan Bank Q3 Results: Net profit falls 52% on higher provisions, misses estimates

Private sector lender Bandhan Bank Ltd on Thursday (January 22) reported a net profit of ₹205.6 crore for the third quarter, compared with the CNBC-TV18 poll estimate of ₹217 crore. The bank’s net interest income for the quarter stood at ₹2,689 crore, lower than the CNBC-TV18 poll of ₹2,720 crore.

On a year-on-year basis, net profit declined 51.6% to ₹205.6 crore from ₹426 crore in the corresponding quarter last year. Net interest income declined 4.5% year-on-year to ₹2,869 crore, compared with ₹2,814 crore reported in the year-ago period.

Net revenue for Q3 FY26 was ₹3,379 crore, up 7.8% sequentially from ₹3,135 crore in Q2 FY26. Net interest income (NII) rose 3.8% QoQ to ₹2,688 crore from ₹2,589 crore, with a net interest margin (NIM) of 5.9% versus 5.8% in Q2 FY26. Operating profit increased 10% QoQ to ₹1,445 crore from ₹1,310 crore, while provisions and contingencies remained flat at ₹1,155 crore.

Also Read: Bandhan Bank loan growth back at 10% after two quarters, EEB collection efficiency improves

Bandhan Bank’s total business crossed ₹3 lakh crore in Q3 FY26, with deposits and advances showing steady growth. The bank’s profit after tax for the quarter stood at ₹206 crore, registering an 84% sequential increase from ₹112 crore in Q2 FY26.

Deposits:

As of December 31, 2025, total deposits reached ₹1.57 lakh crore, up 11% year-on-year from ₹1.41 lakh crore in the previous year. CASA deposits stood at ₹42,730 crore, with a CASA ratio of 27%. The combined ratio of CASA plus retail term deposits to total deposits remained above 72%.

Advances:

Gross advances as of December 31, 2025, stood at ₹1.45 lakh crore, up 10% year-on-year from ₹1.32 lakh crore. Secured advances grew 27% YoY and now make up nearly 57% of the total loan book. Retail loans (excluding housing) grew 57% YoY, wholesale banking advances increased 32%, and the housing loan book rose 10% YoY (excluding IBPC). Collection efficiency for EEB loans was 98.2%, and the provision coverage ratio, including technical write-offs, stood at 84.3%.

Also Read: Bandhan Bank targets 15-17% loan growth over 3 years, outpacing industry

For the nine months ended December 31, 2025, the bank’s net revenue stood at ₹9,997 crore compared to ₹11,002 crore in 9M FY25, with NII at ₹8,034 crore versus ₹8,735 crore previously. Operating profit was ₹4,424 crore compared to ₹5,817 crore in 9M FY25, while provisions rose to ₹3,454 crore from ₹2,505 crore.

Profit after tax for 9M FY26 was ₹689 crore, compared with ₹2,427 crore a year ago. Return on assets (RoA) stood at 0.5% and return on equity (RoE) at 3.6% on an annualised basis. The capital adequacy ratio, including profits, was 17.8%, well above the regulatory requirement of 11.5%.

Shares of Bandhan Bank Ltd ended at ₹142.65, up by ₹4.65, or 3.37%, on the BSE.

Also Read: Bandhan Bank Q2 Results: Misses estimates; profit plunges 88%, asset quality steady