KOLKATA – Bandhan Bank Ltd. announced a significant increase in its financial performance for the second quarter of fiscal year 2027 (Q2 FY27), with net profit soaring by 456% year-on-year to ₹620 crore. The strong results, released on Wednesday, also highlighted an improvement in the bank's asset quality and a rise in net interest income.
Robust Financial Growth in Q2 FY27
The bank's net interest income (NII) saw a 14% year-on-year growth, reaching ₹2,960 crore in Q2 FY27, up from ₹2,590 crore in the corresponding quarter of the previous year. Total income for the quarter rose by 17% year-on-year to ₹3,670 crore, while operating profit increased by 19% to ₹1,560 crore. Profit before tax stood at ₹840 crore, a substantial leap from ₹160 crore reported in the year-ago period.
This sharp increase in profitability was partly driven by a 38% year-on-year decline in provisions for standard assets and non-performing assets, which collectively amounted to ₹720 crore.
Improved Asset Quality Ratios
Bandhan Bank demonstrated a significant enhancement in its asset quality. The gross non-performing asset (GNPA) ratio improved to 3.1% at the end of September 2026, down from 5% a year earlier. Similarly, the net non-performing asset (NNPA) ratio decreased to 0.9% from 1.4% in the same period last year. The credit cost ratio also declined to 1.8% from 3.4%.
The provision coverage ratio (PCR) stood at 71.2%, with PCR including security receipts at 74.3%. While fresh slippages increased slightly to ₹1,130 crore in Q2 FY27 from ₹1,080 crore in the June quarter, recoveries and upgrades also rose to ₹480 crore from ₹450 crore.
Advances and Deposit Growth
The bank reported a healthy growth in its loan book, with gross advances increasing by 13.1% year-on-year to ₹1.58 lakh crore as of September 30, 2026. A notable trend was the continued shift towards secured lending, with the secured portion of the loan book expanding to 57.3%, an increase of 237 basis points from a year earlier.
Total deposits grew by 9.2% year-on-year to ₹1.73 lakh crore, with retail deposits showing an 11.9% increase to ₹1.25 lakh crore. Retail deposits now account for 72.7% of the bank’s total deposits. The current account and savings account (CASA) ratio, however, saw a slight decline to 26.7%, down 125 basis points year-on-year.
Bandhan Bank's non-emerging entrepreneurs business (non-EEB) book grew by 19.8% year-on-year to ₹1.06 lakh crore. As of September 2026, the bank maintained an extensive network of 2,001 branches and 4,414 banking units, totaling 6,415 banking outlets across 35 states and Union territories.