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%.

Partha Pratim Sengupta, MD and CEO, said, "Bandhan Bank's third quarter performance over the last quarter reflects the strengthening fundamentals and steady turnaround.

In Q4, we are set to accelerate multiple digital initiatives aimed at enhancing customer experience, operational efficiency, and scalability. We remain fully committed to building a strong, more resilient and more diversified bank. These efforts position us well for sustainable and profitable growth going forward."

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

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