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

Key takeaway from Bandhan Bank’s Q4 update

Bandhan Bank reported a strong year-on-year improvement in profitability for Q4 FY26, while net interest income (NII) rose modestly. Asset quality also improved, with net non-performing assets (NPAs) edging lower versus both the previous quarter and the same period last year. The quarter’s numbers arrived alongside active trading in the stock and derivatives, as well as a wide spread of broker ratings.

The headline profit figure was cited at about Rs 530 crore, while the bank’s commentary also referenced net profit of Rs 534 crore for Q4, a 68% increase over the year-ago period. Profit before tax (PBT) climbed sharply as well, rising to Rs 770 crore from Rs 310 crore in Q4 FY25.

Profit and PBT show a sharp year-on-year lift

The bank’s reported Q4 FY26 performance indicated a meaningful improvement in earnings momentum. PBT for the quarter stood at Rs 770 crore, up 145.5% from Rs 310 crore a year earlier. After provisions and taxes, net profit was stated at Rs 534 crore, reflecting a 68% year-on-year rise.

The management commentary linked the quarter’s outcome to improving fundamentals across core businesses and a sharper focus on balance sheet quality. It also pointed to business momentum building through the quarter, with advances growing at a “healthy pace” and secured segments showing continued strength.

NII growth remains modest, while margins improved sequentially

NII for the quarter was stated at Rs 2,796 crore, representing 1.4% year-on-year growth and a 4% sequential increase. Alongside this, the bank reported margin expansion, with net interest margin (described as NIS/NIM in the update) improving to 6.2% from 5.9% in Q3.

The margin improvement was attributed to a reduction in deposit costs of nearly 23 basis points quarter-on-quarter, coupled with a 14 basis points improvement in advances yields. Other income was described as “encouraging,” with 10% growth year-on-year and a 12% rise over the previous quarter.

Asset quality improves: net NPA edges down

Asset quality metrics strengthened in the quarter. Net NPAs came in at 0.97%, improving from 0.99% in the previous quarter and 1.28% in the same period last year. The bank also referred to gross and net NPA levels at around 3.3% and 1%.

These numbers matter because the bank has been under close market watch for credit-cost trends and signs of stabilisation in portfolios. Management commentary described the quarter as showing “strengthening business momentum” and “continued balance sheet resilience.”

Deposit and loan book growth points to balance sheet expansion

Bandhan Bank’s deposit balances were stated at Rs 166,000 crore (Rs 1.66 lakh crore), supported by traction in retail and CASA deposits. The bank also noted retail term deposits growing at over 30% year-on-year.

On the advances side, the loan book stood at Rs 154,000 crore (Rs 1.54 lakh crore) as of March 31, 2026. This represented 13% year-on-year growth and a 6% sequential expansion.

Stock reaction on April 28, 2026 and the day’s trading range

Despite the improvement in reported profitability and asset quality, the stock ended lower on the BSE on April 28, 2026. Bandhan Bank shares fell 1.98% to close at Rs 178.30.

During the session, the stock opened at Rs 179.66 versus a previous close of Rs 181.87. It traded in a range of Rs 177.70 to Rs 183.09, with an average traded price of Rs 180.83.

Volume, moving averages, and technical references in focus

Combined NSE and BSE volume was stated at 9.35 million shares, compared with a 20-day average of 10.91 million. Technical datapoints in the update referenced the 50-day moving average (DMA) at 168.52 and the 200-DMA at 161.87.

The content also referenced a “bullish indication” on the daily chart under a Heikin-Ashi changeover marker, while another note described the intraday trend as a downtrend for the day. Separately, the stock was described as trading above key moving averages across multiple periods in certain market snapshots.

Derivatives activity: open interest spikes across sessions

Derivatives positioning drew attention in multiple updates. Open interest in Bandhan Bank’s futures and options contracts was reported to have risen from 40,427 contracts to 44,821, an increase of 10.87%.

A separate datapoint for April 24, 2026 stated open interest rose to 45,420 contracts from 38,396 the previous day, an increase of 18.29%. These figures were reported alongside sharp intraday stock moves across those sessions, indicating active repositioning by market participants.

Analyst coverage and broker ratings remain split

The stock is tracked by 25 analysts. The rating distribution cited was 9 “strong buy,” 4 “buy,” 7 “hold,” 4 “sell,” and 1 “strong sell.” The average broker rating was described as “Buy.”

Two broker calls were highlighted: ICICI Securities with a “Buy” and target price of Rs 185, and JM Financial with an “Add” and target price of Rs 260. The stock’s 52-week high was stated at Rs 192.45 and the 52-week low at Rs 134.30.

Key numbers snapshot

Market impact: what investors tracked alongside results

The reported jump in profit and the improvement in net NPAs add to the set of indicators investors typically use to judge the pace of a bank’s operating recovery. At the same time, the session’s price decline suggests the market also weighed near-term trading factors and positioning.

Analyst coverage remained broad, but not uniform, as reflected in the spread between “strong buy” and “sell” ratings. Derivatives open interest changes and delivery volume references pointed to heightened engagement from both traders and longer-horizon participants around the time of these updates.

Why this quarter matters in context

Bandhan Bank’s Q4 update combined three datapoints that the market tends to prioritise for lenders: profitability, margins, and asset quality. The bank reported higher earnings, sequential margin expansion to 6.2%, and a net NPA improvement to 0.97%.

Balance sheet growth was also visible, with deposits at Rs 166,000 crore and the loan book at Rs 154,000 crore as of March 31, 2026. These numbers provide a clearer base for tracking whether the improvements in credit quality and earnings are being achieved alongside sustainable growth.

Conclusion

Bandhan Bank’s Q4 FY26 results showed a year-on-year surge in profit, modest NII growth, improving net NPAs, and expanding deposits and advances. The stock, however, ended down 1.98% on April 28, 2026, highlighting that price moves can diverge from headline fundamentals in the short term. Investors will now track how margins, asset quality, and growth metrics progress in subsequent quarters, alongside broker updates and derivatives positioning trends.