Bandhan Bank Limited Earnings Summary — Q1 FY2027
Bandhan Bank Q1 Net Profit Climbs 35% YoY Driven by Reduced Credit Costs and Robust Secured Loan Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 3.7% sequentially in Q1 FY2027.
- Revenue of ₹5,631 Cr is 2.8% higher year-on-year.
- Revenue has compounded at 3.7% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹502 Cr is 34.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 167.9% annualised across the period.
- Operating margin stands at 49.4% in Q1 FY2027.
- Operating margin expanded by 349 bps year-on-year.
- Over the last two years operating margin has contracted by 1240 bps.
- PBT margin is 12.0%.
- Expense growth of -3.8% remained below revenue growth of 2.8%.
- Operating profit of ₹2,782 Cr is 10.6% higher year-on-year.
- Operating leverage continues to improve.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 63/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 5,631 | 5,428 | 5,431 | 5,354 | 5,476 | 5,434 | 5,479 | 5,500 | 5,536 | 5,189 |
| Expenses | Stable | 2,849 | 2,802 | 3,089 | 2,977 | 2,962 | 3,144 | 3,281 | 2,294 | 2,115 | 3,496 |
| Operating Profit | Improving | 2,782 | 2,626 | 2,342 | 2,377 | 2,514 | 2,290 | 2,198 | 3,206 | 3,421 | 1,693 |
| Operating Margin | Improving | 49.4% | 48.4% | 43.1% | 44.4% | 45.9% | 42.1% | 40.1% | 58.3% | 61.8% | 32.6% |
| Other Income | Improving | 604 | 771 | 691 | 546 | 726 | 700 | 1,112 | 609 | 528 | 701 |
| Interest | Stable | 2,710 | 2,633 | 2,743 | 2,765 | 2,718 | 2,678 | 2,664 | 2,566 | 2,531 | 2,330 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Volatile | 676 | 764 | 290 | 158 | 521 | 311 | 645 | 1,249 | 1,418 | 64 |
| Tax | Improving | 174 | 230 | 85 | 46 | 150 | -7 | 219 | 311 | 354 | 10 |
| Net Profit | Volatile | 502 | 534 | 206 | 112 | 372 | 318 | 426 | 937 | 1,063 | 55 |
| Net Margin | Volatile | 8.9% | 9.8% | 3.8% | 2.1% | 6.8% | 5.8% | 7.8% | 17.1% | 19.2% | 1.1% |
Key Takeaways
- Net profit surged 34.9% YoY to ₹502 crore, supported by a significant 40% reduction in provisions and contingencies compared to Q1 FY26.
- Gross advances grew 16% YoY to ₹1.56 lakh crore, with secured advances now constituting 57% of the total loan book, up from 27% YoY growth.
- Asset quality improved sequentially with Gross NPA falling to 3.1% (from 3.3% in Q4 FY26) and Net NPA improving to 0.9% (from 1.0% in Q4 FY26).
- Net Interest Margin (NIM) remained flat sequentially at 6.2%, indicating stabilization despite the shift toward secured lending.
- Deposits grew by a modest 7% YoY, totaling ₹1.65 lakh crore, while Retail deposits (CASA + Retail TD) showed stronger growth at 16% YoY.
- The bank announced a senior management transition with Vinay Jain appointed as Interim CFO effective September 26, 2026.
Management Guidance
Management is focused on delivering customer-centric and digitally enabled growth by strengthening the distribution network and expanding product offerings. The bank aim to create sustainable, balanced, and future-ready growth using data-driven insights.
Sentiment Shift
Improving
Significant YoY profit growth and improving asset quality metrics (GNPA/NNPA) indicate the bank is recovering from past credit cycles, despite a marginal sequential dip in profit.
Outlook
The outlook is positive regarding asset quality stabilization and the shift towards a more balanced, secured loan mix. However, the bank must manage the transition of the CFO and the upcoming CEO succession while continuing to diversify geographically away from its core Eastern markets.
From the Annual Report (Key Quotes)
“Our Q1 FY2026-27 performance reflects the resilience of Bandhan Bank’s franchise, the commitment of our teams, and the trust our stakeholders continue to place in us.”
“We are well positioned to create greater value for our customers and stakeholders while driving sustainable, balanced, and future-ready growth.”
“Secured Advances grew 27% YoY and now constitute nearly 57% of the total loan book.”
Official Quarterly Documents
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This summary is AI-generated from Bandhan Bank Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.