Bandhan Bank announced its June quarter results today, July 18, post market hours, reporting a net profit of ₹372 crore, which came above analysts’ estimates of ₹352 crore. In the same period last year, the bank had reported a net profit of ₹1,063 crore, marking a year-on-year decline of 66.8%.

However, on a sequential basis, net profit improved by 17%, as the bank had reported a net profit of ₹318 crore in the preceding quarter.

The bank’s net interest income (NII), the difference between interest earned from lending activities and interest paid to depositors stood at ₹2,757 crore in Q1FY26, marking a 9.7% year-on-year decline from ₹3,055 crore in the same quarter last year. On a quarter-on-quarter basis, NII remained flat.

Its pre-provision operating profit came in at ₹1,668 crore, compared to ₹1,571 crore in the previous quarter. Provisions were lower at ₹1,147 crore in Q1FY26, compared to ₹1,260 crore in the March quarter, but higher than the ₹522 crore reported in the June 2024 quarter.

Meanwhile, the bank’s asset quality showed continued signs of deterioration, with gross NPAs (GNPA) rising to ₹6,620 crore in Q1FY26, up from ₹6,440 crore in Q4FY25 and ₹6,180 crore in Q3FY25.

0This marks the fifth consecutive quarter of rising GNPA, indicating persistent stress in asset quality. Net NPAs (NNPA) increased to ₹1,740 crore, from ₹1,690 crore in Q4FY25. Fresh slippages in Q1FY26 stood at ₹1,550 crore, slightly lower than ₹1,750 crore in Q4FY25 but still elevated compared to ₹890 crore in Q1FY25.

Bandhan Bank share price trend

The shares have made a strong comeback in recent months, gaining 32.6% over the last five months, including the current month.

 However, looking at the long-term performance, the stock has remained under pressure in recent years, as the bank has been grappling with prolonged asset-quality issues, leading to a sharp deterioration in its return on assets (RoA). After hitting an all-time high of ₹741 in August 2018, the shares have never come close to that level again. In fact, the stock has not crossed the ₹300 mark since January 2021.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.