Shares of Bandhan Bank Ltd. rose over 5% in early trade during Friday's session, despite the company reporting a 52% decline in net profit for the quarter ended December.
The Kolkata-based bank had a net profit of Rs 426.29 crore in the third quarter of the preceding fiscal. Its total income declined to Rs 6,122 crore during the third quarter of FY26 from Rs 6,591 crore a year ago.The total expenditure increased to Rs 4,677 crore during the quarter under review against Rs 4,569 crore in the year-ago period.
Gross non-performing assets improved to 3.33% of gross advances, from 4.68% in the third quarter of FY25.
Bandhan Bank's management struck a cautiously optimistic tone on the outlook, guiding for lower credit costs in Q4FY26 and providing FY27 credit cost guidance of 1.6–1.7%, while pegging credit costs for the Emerging Entrepreneurs Business (EEB) at around 2.5%.
Management said the cost of funds is expected to inch down further, which should provide incremental support to net interest margins (NIMs) in the coming quarters. It also reiterated its growth guidance, targeting a 15–17% CAGR in the loan book, while indicating that deposit growth is likely to outpace loan growth, supporting balance sheet strength.
CLSA described the quarter as a “better” one after a prolonged weak phase, noting that Bandhan Bank reported a decent Q3FY26 following a few tough quarters.
The brokerage said pre-provision operating profit (PPOP) came in better than expected, aided by an improvement in slippages. However, higher credit costs resulted in a 9% miss at the profit before tax (PBT) level. CLSA clarified that credit costs were not elevated due to fresh slippages, which it sees as a relatively comforting trend.
Margins were largely stable during the quarter, which CLSA flagged as a key relief, especially after two consecutive quarters of sharp margin decline.
Macquarie maintained its Underperform rating on the stock with a target price of Rs 130, saying credit cost trajectory remains the key monitorable.
The brokerage noted that the PAT beat was driven largely by higher other income, while slippages continue to remain elevated, contributing to higher credit costs. Macquarie expects net interest margins to improve steadily over the coming quarters, supported by easing funding costs, but remains cautious given asset quality pressures.
Bandhan Bank Share Price Today
The scrip rose as much as 5.38% to Rs 150.70 apiece. It pared gains to trade 3.97% higher at Rs 148.67 apiece, as of 10:27 a.m. This compares to a 0.08% decline in the NSE Nifty 50 Index.
It has fallen 1.42% in the last 12 months. Total traded volume so far in the day stood at 3.9 times its 30-day average. The relative strength index was at 61.80.
Out of 28 analysts tracking the company, 14 maintain a 'buy' rating, eight recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 13.4%.
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