Why Has Bandhan Bank Crashed 15% Today? Know Key Reason Behind Stock Selloff on July 22

Bandhan Bank Share Price: Shares of Bandhan Bank on Wednesday tumbled by 15.2 per cent to trade at Rs 177.8 apiece on the NSE in the early trade. The crash comes after the lender in its post-Q1 concall reduced its profitability guidance for the full financial year 2026-27 and warned that its net interest margin (NIM) is likely to remain under pressure in the next two quarters.

During its post-results conference call, the private sector bank revised its exit return on assets (RoA) guidance for the fourth quarter of FY27 to 1.2-1.4 per cent from the earlier 1.6-1.8 per cent, citing persistent pressure on margins and elevated operating expenses.

Bandhan Bank Stock Price

The stock crashed over 15 per cent on Wednesday to Rs 177.2 apiece on the NSE. With this, it is now down

by around 3 per cent for the year. However, the stock is still 27.5 per cent up in the past six months. The stock had hit its 52-week low of Rs 134 apiece in February this year.

The stock on Wednesday slumped mainly because of guidance cut for FY27 and pessimism around NIM for the next two quarters.

What Brokerage Says

Equirus Securities, in its post-results report, noted that “NIM remained stable qoq at 6.2%, but elevated CoF and deposit competition are expected to pressure margins,” while adding that management expects higher cost of funds to keep margins under strain.

The brokerage also highlighted the impact of the revised profitability outlook, saying, “Management maintained opex-to-assets guidance at 4.2% but lowered its RoA target to 1.2-1.4% (from 1.6-1.8%), reflecting a 30bps hit from margin pressure and 10bps from higher opex.”

According to the bank, higher operating expenditure is being driven by continued investments in technology, including cloud infrastructure, hardware, software and loan origination platforms, even as these investments are expected to improve operating efficiency over the medium term.

Despite the near-term profitability pressure, the bank maintained its guidance for around 14 per cent credit growth in FY27, with non-emerging entrepreneurs business (non-EEB) expected to drive growth while the EEB portfolio remains under a cautious approach amid macroeconomic uncertainties. The bank also continues to target a higher share of secured loans in its portfolio.

Bandhan Bank Q1 Results: Profit Up 35%

Bandhan Bank Ltd on July 21 reported a 35 per cent year-on-year rise in its net profit to Rs 502 crore for the first quarter of the 2026-27 financial year as against Rs 372 crore in the corresponding period last fiscal. Net interest income (NII) for the April-June period grew 5.9 per cent to Rs 2,921 crore, compared to Rs 2,757 crore a year ago, while net total income rose 1.2 per cent to Rs 3,524 crore from Rs 3,483 crore in the corresponding period last year.

Gross advances grew 16.4 per cent year-on-year to Rs 1,55,555 crore as of June 2026, from Rs 1,33,625 crore a year earlier, the lender said. On a year-on-year basis, the retail book, excluding housing, grew 45 per cent, wholesale banking rose 38 per cent, while the housing loan book expanded 6 per cent, a statement said.

Asset quality showed sequential improvement, with gross non-performing assets (NPA) at 3.1 per cent and net NPA at 0.9 per cent in the quarter, against 3.3 per cent and 1 per cent, respectively, in the preceding three-month period.

On a year-on-year basis, gross NPA improved by 182 basis points and net NPA by 43 basis points, the lender said. The provision coverage ratio, including technical write-offs, stood at 85.9 per cent as of June 30, 2026. Provisions and contingencies, other than tax, for the quarter were at Rs 683 crore, down 40 per cent year-on-year, the Kolkata-headquartered bank said.

The bank’s capital adequacy ratio stood at 18.2 per cent, down from 19.4 per cent a year earlier. Return on assets was at 1 per cent and return on equity at 7.7 per cent for the quarter.