Bandhan Bank Shares Crash 16.92% To ₹173.50, RoA Guidance Cut Overshadows 35% Profit Growth

Mumbai: Bandhan Bank shares fell sharply on Wednesday after the private lender reduced its return on assets guidance, even though its quarterly profit exceeded expectations.

According to the latest market data available at 12:22 pm, the stock was trading at Rs 173.50, down Rs 35.33 or 16.92 percent. It opened at Rs 187.95 and moved between an intraday high of Rs 192.22 and a low of Rs 169.56.

Guidance Reduced

The Kolkata-based lender now expects its RoA to average 1.2-1.4 percent by the end of FY27. This is 40 basis points below its earlier guidance of 1.6-1.8 percent.

The bank said narrower net interest margins and higher operating expenses could weigh on returns. Rising funding costs and increased technology-related spending have also affected its outlook.

Managing Director and CEO Partha Pratim Sengupta said the bank’s medium-term strategic objective remains unchanged. However, the external environment could affect how quickly it reaches its targeted RoA level.

RoA Movement

Bandhan Bank’s RoA stood at 1 percent at the end of June. It improved by 20 basis points from a year earlier but declined by 11 basis points compared with the previous quarter.

Profit Rises

The bank reported a 35 percent year-on-year increase in net profit to Rs 502 crore for Q1 FY27, against Rs 372 crore in the same quarter last year.

Net interest income rose 5.9 percent to Rs 2,921 crore, while net total income increased 1.2 percent to Rs 3,524 crore.

Loan Growth

Gross advances increased 16.4 percent year-on-year to Rs 1,55,555 crore as of June 2026. The retail loan book, excluding housing, expanded 45 percent, while wholesale banking grew 38 percent. Housing loans rose 6 percent.

Asset quality also improved. Gross non-performing assets declined by 182 basis points year-on-year, while net NPAs improved by 43 basis points.

Despite the improvement in profit and asset quality, investors focused on the weaker profitability outlook. The revised guidance raised concerns that margin pressure and costs may limit earnings growth for the lender.

The bank said it would continue focusing on customer-led, digitally enabled growth by strengthening distribution and expanding its range of products.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult qualified financial advisers.