Bandhan Bank Q4 Results FY26: Profit up 68%, NPAs ease

Key takeaway from Bandhan Bank’s March-quarter print

Bandhan Bank reported a sharp improvement in profitability for the quarter ended March 31, 2026, supported by a better asset quality trend. Profit after tax (PAT) rose 68% year-on-year to ₹534 crore, compared with ₹314 crore in the year-ago quarter. Sequentially, the bank’s profit more than doubled from ₹205 crore in Q3 FY26.

The numbers indicate that credit costs and balance sheet quality remain key drivers for the lender, especially as net interest income growth stayed muted. The board also recommended a dividend of ₹1.50 per equity share, subject to shareholder approval at the upcoming Annual General Meeting.

What Bandhan Bank reported for Q4 FY26

The lender reported net interest income (NII) of ₹2,796 crore in Q4 FY26 versus ₹2,756 crore in Q4 FY25, translating into 1.4% year-on-year growth. Net interest margin (NIM) for the quarter was 6.2%, and the full-year margin was 6.1%.

Bandhan Bank also reported net revenue of ₹3,567 crore for Q4 FY26, up 3.2% year-on-year. For the full year, the bank reported PAT of ₹1,224 crore, with net revenue of ₹13,564 crore.

The management framed the year’s performance as a result of execution and a broadening business model. MD and CEO Partha Pratim Sengupta said the bank’s FY 2025-26 performance reflected the strength of its franchise, backed by disciplined execution and a diversifying business model.

Deposit and loan growth: balance sheet expansion continues

Bandhan Bank reported year-on-year growth in both deposits and advances at the end of March 2026.

Total deposits rose 10% year-on-year to ₹166,000 crore. Gross advances increased 12.6% year-on-year to ₹154,000 crore. The bank also disclosed that its retail deposit base, comprising CASA and retail term deposits, accounted for 74% of total deposits.

In the accompanying operational commentary, the bank highlighted the shift toward retail funding. Retail deposits rose 17.7% year-on-year to ₹122,000 crore, while bulk deposits declined 6.9% year-on-year to ₹43,797 crore. Retail term deposits increased 30.1% year-on-year to ₹73,796 crore.

Asset quality improved, NPAs declined

Asset quality metrics showed improvement compared with the year-ago quarter.

Gross NPA ratio stood at 3.3% in Q4 FY26 compared with 4.7% in Q4 FY25. Net NPA ratio was reported at 1.0% as of the end of FY26, compared with 1.3% in the previous corresponding quarter.

The bank also reported a provision coverage ratio (inclusive of technical write-offs) of 84.9% as of March 31, 2026. In addition, the capital adequacy ratio, including profits, was reported at 18.0% for the year ended March 2026.

Liquidity and collection efficiency metrics disclosed

The bank disclosed liquidity and collection indicators alongside its financial results.

As of March 31, 2026, the liquidity coverage ratio was 131.76%. Collection efficiency improved to 98.9% from 98.1% in the previous quarter. These metrics, along with the reported NPA ratios, were presented as part of the bank’s operational performance for the period.

Dividend recommendation and shareholder approval requirement

Bandhan Bank’s board recommended a dividend of ₹1.50 per equity share (face value ₹10) for FY26. The dividend proposal is subject to shareholder approval at the upcoming AGM, as noted in the result commentary.

For investors tracking payouts, the key point is that the dividend is only a recommendation at this stage. The bank has indicated that the payment would follow once shareholders approve the proposal.

Stock move and market context around the results

Ahead of the results, Bandhan Bank shares closed at ₹178 on the NSE, down 2.13%. The stock was up 25.93% over the past month, according to the data cited alongside the earnings update. The company’s market capitalisation was reported at ₹28,710 crore.

Operating scale: outlets and workforce

Bandhan Bank reported that its network had crossed 6,350 outlets, with more than 75,000 employees. The scale indicators were shared as part of the broader operational snapshot during the results update.

Key numbers at a glance

Why the results matter: a profit recovery led by asset quality

Bandhan Bank’s quarter stands out mainly for the profit jump alongside improved asset quality indicators. The mix of a higher PAT and lower NPA ratios suggests a period where balance sheet stress eased relative to the year-ago quarter.

At the same time, the operating trend on core interest income was steady rather than strong, with NII up 1.4% year-on-year. That combination puts the focus on how much of the profit rebound is linked to credit and provisioning dynamics versus sustained acceleration in core earnings.

The disclosed capital adequacy ratio of 18.0% also signals that the bank remains well-capitalised based on the numbers shared in the update, which matters for growth funding as deposits and advances continue to expand.

Conclusion

Bandhan Bank closed Q4 FY26 with PAT of ₹534 crore, stable margins, and an improved NPA profile versus the year-ago quarter, alongside 10% deposit growth and 12.6% advance growth. The board’s ₹1.50 per share dividend recommendation now moves to shareholder consideration at the upcoming AGM, which is the next formal milestone highlighted in the results update.