Bandhan Bank Q2 Results, October 28, 2026: Profit Jumps to ₹622 Crore as Provisions Fall

Bandhan Bank Q2 results landed on Wednesday, October 28, 2026, and the headline number looks dramatic: net profit of ₹622 crore for the July-September quarter against just ₹112 crore a year ago, according to the bank’s Q2 investor presentation filed on BSE. That’s roughly a 5.6-fold jump. But the base was tiny, so the more useful question is what actually changed inside the Kolkata lender.

The short answer: bad-loan provisions shrank. Provisions and contingencies fell to ₹718 crore from ₹1,153 crore a year earlier, which The Economic Times put at about 38% lower. Sequentially, profit rose 23.9% from ₹502 crore in the June quarter, per CNBC-TV18.

Bandhan Bank Q2 results: the key numbers

• Net interest income (NII): ₹2,960 crore, up 14% from ₹2,589 crore a year ago. Against the June quarter’s ₹2,921 crore, NII grew only 1.3% (CNBC-TV18).
• Net total income: ₹36.7 billion (about ₹3,670 crore), up 16.9% year on year, per the investor presentation.
• Operating profit: ₹1,556 crore, up 19% from ₹1,310 crore.
• Net interest margin: 6.1% for the quarter versus 5.8% a year earlier (ET). For the half year, the bank reported 6.2%.
• First half (April-September): profit after tax of ₹1,123 crore against ₹484 crore in the same period last year.

So the core engine is growing in the mid-teens, while the bottom line has been flattered by much lower credit costs. Both are good news, but they aren’t the same kind of good news.

Asset quality: the real story

Gross NPAs came down to 3.11% of gross advances at the end of September, from 5.02% a year earlier (ET) and 3.15% in June (CNBC-TV18). Net NPAs stood at 0.92%, against 0.93% in June and 1.4% a year ago. The provision coverage ratio, including write-offs, was 86.7%. If you want to see why that ratio matters, our explainer on provision coverage ratio walks through it.

Bandhan’s microloan book, which it calls the emerging entrepreneurs business (EEB), was the source of a lot of past stress. Collection efficiency on EEB loans was 99.3% in Q2, and the bank said its SMA 0, SMA 1 and SMA 2 buckets (loans overdue but not yet NPAs) improved sequentially. We’d watch that bucket data closely over the next two quarters, because it tends to show trouble before the NPA ratio does.

Loan mix is shifting

Gross advances grew 13% to ₹1.58 lakh crore, and deposits rose 9% to ₹1.73 lakh crore. The mix tells you where management is heading. Secured advances grew 18% and now make up more than 57% of the book, up from 55% a year ago. Retail loans other than housing grew 42%, wholesale banking 32%, housing 4%, and the EEB book only 2%.

On the funding side, CASA deposits were ₹46,132 crore, a CASA ratio of 27%. CASA plus retail term deposits made up 73% of total deposits. Capital adequacy stood at 18.3%, well above the 11.5% regulatory requirement, and the bank reported an annualised return on assets of 1.1% and return on equity of 8.5% for the half year.

MD and CEO Partha Pratim Sengupta told reporters this was the bank’s best profit in eight quarters, ET reported, and credited a more diversified loan book.

What it means for investors

The stock closed 2.27% higher at ₹155.36 before the numbers came out, per CNBC-TV18. Our read: this is a clean-up quarter that’s finally showing up in profit, but an RoE of 8.5% is still modest for a private bank, and NII barely moved from June. The next leg depends on whether margins hold as the book tilts towards lower-yielding secured loans. For a wider look at bank asset quality metrics, see our piece on the slippage ratio in bank results.

Sources: Bandhan Bank Q2 FY27 investor presentation (BSE), CNBC-TV18 and The Economic Times, all dated October 28, 2026.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.