Bandhan Bank Q3 Results: PAT halves, misses Street estimates; NII down 4%—Catch key takeaways

Bandhan Bank on Thursday reported a net profit of Rs 206 crore for the quarter ended December 31, more than halving from its net profit of Rs 426 crore a year ago. The Kolkata-based private lender's quarterly net profit missed analysts' expectations.

The bank's net interest income (NII) -- or the difference between interest earned and interest paid -- fell 4.4 per cent on a year-on-year basis to Rs 2,689 crore, according to a regulatory filing.

Net interest income is a key measure of a financial institution's top line.

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Bandhan Bank Q3 FY26 profit and interest income vs estimates

The lender's net interest income also fell short of Street expectations.

According to Zee Business research, Bandhan Bank was estimated to register a net profit of Rs 270 crore with Rs 2,750 crore in net interest income for the fiscal third quarter.

Bandhan Bank's net interest margin (NIM) -- a key measure of profitability -- stood at 5.9 per cent in Q3 FY26 versus 5.8 per cent in Q2 FY26 and 6.9 per cent in Q3 FY25.

Bandhan Bank asset quality improves

The bank's asset quality -- indicated by sequential changes in the proportion of bad loans in total assets -- improved, reflected in its gross non-performing assets (GNPAs) at 0.99 per cent in the December quarter versus 1.37 per cent in the previous three months.

Its net non-performing assets (NNPAs) declined to 3.33 per cent in Q3 from 5.02 per cent in Q2, according to the filing.

Bandhan Bank Q3 FY26 provisions

The lender's provisions were largely unchanged on a quarter-on-quarter basis, at Rs 1,155 crore.

The quarterly provisions fell 16.1 per cent compared with the corresponding period a year ago.

Bandhan Bank capital adequacy ratio

Bandhan's capital adequacy ratio stood at 17.33 per cent as of December 31.

CAR or capital adequacy ratio is a key measure of a financial institution's strength measured by its total capital against risk-weighed assets (RWAs).

Bandhan Bank CASA ratio

The bank's CASA ratio -- the proportion of current and savings accounts in total deposits -- shrank by 70 basis points sequentially to 27.3 per cent.

A higher CASA ratio indicates access to low-cost funds, and vice versa.

Bandhan's gross advances grew 3.7 per cent sequentially to Rs 1,45,220 crore, while its deposits declined 0.9 per cent to Rs 1,56,720 crore, according to the lender.

Bandhan shares vs Nifty50 vs Nifty Bank YTD and in a year

Earlier on Thursday, Bandhan Bank shares ended 3.4 per cent higher at Rs 142.7 apiece on BSE, as benchmark indices rebounded after three straight days of losses.

Bandhan Bank shares have made a lukewarm start to the year, down 0.8 per cent on a year-to-date basis as of December 22. That was still better than a 3.3 per cent fall in the Nifty50 and in line with a 0.9 per cent decline in the Nifty Bank.

At this level, the Bandhan Bank stock has declined 5.6 per cent in a year, underperforming gains of 9.2 per cent and 21.5 per cent in the Nifty50 and Nifty Bank indices, respectively.