Bandhan Bank shares surged nearly 10% to a 52-week high of Rs 196.10 on April 29 after the lender reported strong Q4FY26 results, driven by sharply lower provisions and improving asset quality, even as margin pressures persisted. The rally reflects renewed investor confidence in the bank’s balance sheet strength and recovery trajectory.

Key Highlights

• Bandhan Bank reports 68% YoY profit growth driven by lower provisions and improved asset quality.
• Bandhan Bank shares surge to ₹196 high as brokerages remain bullish on growth and improving fundamentals.

Bandhan Bank reported a net profit of Rs 534.14 crore for the March quarter, marking a 68% year-on-year (YoY) increase from Rs 317.90 crore in Q4FY25. The sharp rise in profitability was largely supported by a significant decline in provisions and contingencies, which fell 46.3% YoY to Rs 677 crore.

Net interest income (NII) grew modestly by 1.4% YoY to Rs 2,795.6 crore, while total revenue rose 3.2% to Rs 3,567 crore, indicating stable but muted topline growth. However, margins remained under pressure, with net interest margin (NIM) declining to 6.2% from 6.7% a year ago, reflecting higher funding costs and yield compression.

The bank reported a steady improvement in asset quality during the quarter. Gross non-performing assets (GNPA) eased to 3.27% from 3.33% sequentially, while net NPAs declined to 0.97% from 0.99%. The improvement in credit metrics, coupled with lower slippages and provisioning, played a key role in boosting earnings and strengthening investor sentiment.

Bandhan Bank continued to report steady business growth in Q4FY26. Deposits increased 10% YoY to Rs 1.66 lakh crore while Gross advances rose 13% YoY to Rs 1.54 lakh crore. The growth was supported by strong traction across retail and secured loan segments, reflecting improving business momentum.

For the full financial year FY26, the bank reported a net profit of Rs 1,223.56 crore, down 55.43% YoY due to elevated provisions earlier in the year. Total operating income declined marginally by 1.18% to Rs 21,689.11 crore. The board recommended a dividend of Rs 1.5 per equity share, translating into a 15% payout on a face value of ₹10.

Also Read: HDFC Bank and ICICI Bank Q4 FY26 Results: Who Leads in Performance?

Stock Performance and Brokerage Views

Bandhan Bank shares have shown strong momentum, rising:

• 12% in one week
• 33% in one month
• 46% from the 52-week low of Rs134

Brokerages remain optimistic on the stock. JM Financial maintained an “Add” rating with a target price of Rs 200, citing improving asset quality and lower credit costs. Motilal Oswal also reiterated a “Buy” rating with a target price of Rs 210, highlighting strong business momentum and expectations of further NIM expansion over the next few quarters.