Bandhan Bank Q2 FY26 shock: stock falls 8%, targets cut

What investors saw on the screen

Bandhan Bank shares came under sharp pressure across multiple trading updates cited in the data. In one snapshot, the stock was at ₹199.85 after falling 5.63% from a previous close of ₹211.76. Another market snapshot shows a previous close of ₹202.33, with the day’s range listed at ₹199.61 to ₹205.18 and a 52-week range of ₹134.25 to ₹218.13.

Separately, the data also references a 25 June 2026 intraday update where Bandhan Bank was down 3.95% versus the previous closing price of ₹207.12, trading at ₹203.40. The inputs also include a “BANH Pro Research” close at 201.76, down 4.72%.

The trigger: Q2 profit collapses, stock reacts

The key event tied to the sell-off was a steep drop in quarterly profitability. The data states Bandhan Bank’s Q2 profit fell 88% year-on-year to about ₹111.9 crore (also cited as ₹112). Following the results, the stock fell more than 5% in early trade, and later references show deeper cuts.

One report in the provided text notes the shares fell 5.92% in Friday’s trade to hit a low of ₹160.40 after a disappointing September quarter (Q2 FY26) performance. Another market update says Bandhan Bank plunged over 8% to ₹156.50 at mid-day, calling it the lowest level since October 2025.

What brokerages flagged: margins, provisions, credit costs

Brokerages cited in the text pointed to an “all-round miss” across margins, provisions, and profitability. CLSA is repeatedly referenced as highlighting weak net interest income and operating profit, alongside “high credit costs” that hurt profitability.

The pressure was linked to continued stress in microfinance (MFI). Axis Securities was cited as cutting its target price from ₹195 to ₹165 while retaining a ‘Hold’ rating, attributing the downgrade to ongoing deterioration in asset quality within the MFI book.

JM Financial was also cited as lowering its rating to ‘Reduce’ with a target price of ₹165. It flagged that weakness had moved beyond microfinance, with gross NPAs in the non-MFI segment rising 11% quarter-on-quarter.

CLSA downgrade: rating cut and target reduced

A key negative catalyst mentioned is a CLSA downgrade. The text states CLSA downgraded Bandhan Bank from “Buy” to “Accumulate” and cut its target price by 13.6%, from ₹220 to ₹190.

One part of the input says Bandhan Bank shares “crashed 6% within minutes of market opening” after the CLSA action. It also claims that by 9:40 AM, shares were at ₹160.05, down 6.2% from the prior close, wiping out ₹3,200 crore in market value.

Street’s 12-month targets: wide range, average near ₹192

The data includes a consolidated view of analyst expectations. According to projections from 24 analysts, the average 12-month price target for Bandhan Bank is ₹191.71, with a high estimate of ₹235 and a low estimate of ₹130.

The same dataset describes the implied downside as 4.98% based on the average target. This matters because the target range is wide, suggesting meaningful disagreement on how quickly profitability and asset quality could stabilise.

Key price levels mentioned by a technical view

The inputs include a Hindi-language excerpt citing a view from an equity research senior manager at Anand Rathi Investment Services, Jigar Patel. It states that after the sharp fall, the technical charts looked weak, and further downside could take the stock towards ₹150 to ₹152.

On the upside, it cites ₹165 as a major resistance level for Bandhan Bank shares. These levels were mentioned in the context of heavy selling after quarterly results.

Quick data table: price and range snapshots (as provided)

Brokerage actions and targets mentioned in the inputs

The dataset includes multiple brokerage calls and price targets, sometimes for different dates and contexts. The table below lists broker actions explicitly stated.

Why the episode matters for investors tracking private banks

The combination of an 88% year-on-year profit drop and immediate target cuts shows how quickly sentiment can turn when credit costs rise. The text also shows that the debate is not just about microfinance stress, but also about whether pressure is spreading beyond the MFI portfolio.

At the same time, the analyst target distribution in the data remains broad, with estimates spanning ₹130 to ₹235. That range, along with repeated downgrades and revised estimates, highlights the uncertainty investors are pricing in around earnings normalisation and asset-quality trajectory.

Conclusion

Bandhan Bank’s sharp move, including drops of 5% to 8% cited across the updates, was tied to Q2 FY26 results showing an 88% YoY profit decline to about ₹112 crore and a series of brokerage downgrades led by CLSA’s rating cut and target reduction to ₹190. Investors will likely keep tracking further broker revisions, credit-cost commentary, and the stock’s reaction around the ₹150 to ₹152 support zone and ₹165 resistance cited in the inputs.