Noida, Apr 29 (APAC Media): Bandhan Bank shares rallied more than 9.2% on Wednesday after the lender reported a strong set of fourth-quarter earnings, driven by a sharp rise in profit and improving asset quality.
The upbeat performance reassured investors about the bank’s recovery trajectory, prompting buying interest in early trade.
Bandhan Bank reported a strong performance for the January–March quarter of FY26, with a sharp increase in profitability and continued improvement in asset quality.
The lender posted a 68 percent year-on-year rise in net profit at ₹534 crore for the fourth quarter, supported by lower credit costs and higher fee income. The earnings growth came despite relatively modest expansion in core operating income during the period.
Net interest income (NII), which reflects the bank’s core lending performance, rose 1.4 per cent year-on-year to ₹2,795.4 crore, indicating steady but subdued growth in interest-earning assets.
Gross non-performing assets (GNPA) stood at 3.27 per percent, compared with 3.33 per cent in the December quarter. Net non-performing assets (NNPA) also eased to 0.97 per cent from 0.99 per cent on a quarter-on-quarter basis, reflecting a gradual strengthening of the loan book.
Collection efficiency rose to 98.9 per cent during the period, indicating improved recoveries and better repayment trends across segments.
On the business front, Bandhan Bank reported steady growth in its balance sheet during the March quarter.
Loans and advances increased 12.6 per cent year-on-year to ₹1.54 lakh crore, while total deposits rose 10 per cent to ₹1.66 lakh crore, reflecting stable expansion across core segments.
Retail deposits continued to outpace overall deposit growth, rising 17.7 percent year-on-year. Their share in total deposits increased to 73.67 per cent, indicating a continued shift towards a more granular and stable liability franchise.
The bank also maintained a strong liquidity position, with its liquidity coverage ratio (LCR) standing at 131.76 per cent, well above regulatory requirements. This suggests adequate high-quality liquid assets to meet short-term obligations and reinforces balance sheet resilience.
Disclaimer:Â Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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