Private sector lender Bandhan Bank on Friday reported a 65% year-on-year decline in net profit for the quarter ended June 2025, at ₹372 crore, compared to ₹1,063 crore in the same quarter last year.

The bank’s net interest income (NII) for Q1 FY26 stood at ₹2,757 crore, down from ₹2,987 crore in Q1 FY25. Net Interest Margin (NIM) for the quarter was 6.4%.

Operating profit for the quarter was ₹1,668 crore, compared to ₹1,941 crore in the year-ago period.

Provisions (excluding tax) and contingencies charged to the Profit and Loss account for Q1 FY26 stood at ₹1,147 crore, significantly higher than ₹523 crore in Q1 FY25. In the preceding quarter (Q4 FY25), provisions were ₹1,260 crore.

Profit after tax stood at ₹372 crore in Q1 FY26, compared to ₹1,063 crore in Q1 FY25 and ₹318 crore in Q4 FY25.

As of June 30, 2025, Gross Advances stood at ₹1.34 lakh crore, reflecting a 6% year-on-year growth from ₹1.26 lakh crore.

Segment-wise, the retail book (excluding housing) grew 78% YoY, wholesale banking rose 32%, and the housing loan book expanded by 15%. However, the Emerging Entrepreneurs Business (EEB) book declined by 15%.

The bank’s Gross Non-Performing Assets (NPA) ratio stood at 5.0%, while Net NPA was 1.4% as of June 30, 2025. The Provision Coverage Ratio (PCR) was 73.7%, and including write-offs, the PCR stood at 87.3%.

The capital adequacy ratio, including profits, stood at 19.4%—well above the regulatory requirement of 11.5%.

Commenting on the performance, Managing Director and CEO Partha Pratim Sengupta said, “Bandhan Bank has delivered a sequentially improving performance in Q1 FY26, marked by strong growth in deposits and continued momentum in Retail & Wholesale banking. While the operating environment poses certain challenges, our performance reflects the underlying resilience of our business and the strength of our strategic direction. We remain focused on prudent risk management, operational efficiency, and delivering long-term value for our customers and stakeholders."

The bank's distribution network comprises nearly 6,350 outlets, serving a customer base of 3.14 crore. It employs over 73,000 people.

Total net revenue for Q1 FY26 stood at ₹3,483 crore, slightly lower than ₹3,533 crore in Q1 FY25.