Bandhan Bank jumps 10% as NIM rises to 6.2% in FY26

What moved Bandhan Bank stock on Wednesday

Bandhan Bank Ltd shares surged 10% in Wednesday’s trade after the private lender reported better-than-expected earnings for the March quarter, driven by lower provisioning. The move came as investors reacted to a profit after tax beat and a sequential expansion in net interest margin (NIM). Net interest income (NII) was reported to be broadly in line with Street estimates. The combination of stable core income and lower credit-related charges helped shape a more constructive near-term view for the stock. The rally also followed a period where the counter has seen stronger momentum in recent sessions. The reaction highlights how quickly sentiment can shift when credit costs and margins move in the right direction.

March quarter snapshot: profit beat, NII steady

The key positive in the quarter was that profitability came in ahead of expectations, with provisioning lower than the market had pencilled in. While the article does not provide the exact profit figure, it notes the beat relative to estimates. NII being “in line” suggests the surprise was not driven by sharp loan book expansion in the quarter, but by the cost and risk line. Sequential NIM expansion was another support, as margins are closely watched for banks that have seen volatility across cycles. Taken together, these datapoints point to operating performance improving without requiring aggressive balance sheet expansion. For investors, the quarter was mainly a story of better risk outcomes and better pricing.

NIM at 6.2% and what management is guiding

Bandhan Bank reported NIM at 6.2% for the quarter. Management guidance, as cited, is for NIM to expand by 10-20 basis points over the next 2-3 quarters. The driver identified is repricing of term deposits, which can influence the cost of funds and the margin trajectory. The bank also indicated that advances are likely to grow in line with or ahead of overall business growth. Loan growth is expected to remain healthy at 14-15%, based on management commentary. Margin guidance matters because it shapes expectations for earnings durability even if credit costs normalise further.

Credit costs and asset quality: easing stress becomes the focus

A key part of the positive read-through was improving credit costs. Motilal Oswal Financial Services (MOFSL) said credit costs improved to 2% versus 3.3% in Q3, alongside a 30 basis points QoQ expansion in NIM. Another brokerage note in the article highlighted that credit cost decreased by 149 bps QoQ to 1.9%, aided by lower slippages and improving collections in the EEB portfolio. It also said gross and net slippages improved by 100 bps and 95 bps QoQ, while EEB slippages declined sharply. Nuvama added that challenges in the EEB portfolio have largely normalised, but also flagged that further normalisation is still anticipated. These comments indicate the market is watching whether the improving trend sustains across portfolios, especially segments that previously carried higher stress.

What brokerages changed: targets, ratings, and assumptions

MOFSL described the quarter as strong and pointed to seasonally robust momentum in 4Q. It also cited an exit FY27 NIM guidance of 6.5% on earning assets (6% on total assets) and said it was conservatively factoring 6% NIM on earning assets. MOFSL suggested a revised target price of INR 210. A separate brokerage note said stress is easing as recovery gained pace, maintained an ‘ADD’ rating, and raised its target to INR 200 from INR 160, valuing the stock at FY28 book value of 1.1 times versus 0.9 times earlier. Nuvama upgraded the stock to ‘HOLD’ with a revised target of INR 190 from INR 133, and noted the stock trades at 1 time FY27E book value. The set of revisions shows that even when ratings differ, the common pivot is improvement in margins and credit costs.

Stock price context: recent levels, volatility, and momentum

The article cites multiple price markers across different points in time. As on 28 Apr, 2026, 03:59 PM IST, Bandhan Bank share price is stated as INR 178.65, and also described as down 1.78% versus the previous closing price of INR 174.67. Separately, it says the stock trades around INR 183 with a market capitalisation of INR 29,478 crore. Over the past year, the price has moved between INR 134 and INR 192, indicating a moderate volatility band. Another datapoint says the stock rose 4% to INR 190.20 to hit a seven-month high, extending gains to a fifth straight session and taking the cumulative five-day rise to about 10%. On a year-to-date basis, the stock is described as up nearly 30%.

How the longer-term underperformance frames the current rerating

Despite the recent run-up, the stock’s longer-term returns have lagged the benchmark in the article’s comparison. Bandhan Bank shares are stated to have declined 8%, 18%, and 46% over the last two, three, and five years, respectively. Over the same periods, the Sensex is cited to have risen 13%, 38%, and 67%. This gap helps explain why some brokerages refer to “valuation de-rating” over the past five years. It also explains why improved credit signals and clearer margin guidance can trigger sharp moves, as the base of investor expectations may have been low. At the same time, mixed brokerage stances show that the rerating is still being debated.

Key facts and estimates at a glance

Other datapoints investors are tracking: advances and sales trend

The article states Bandhan Bank reported a YoY increase of 13.73% in advances, higher than its five-year CAGR of 9.82%, based on standalone financials. It also states that sales de-grew by 1.97%, and that the company witnessed revenue contraction for the first time in the last three years. These two datapoints together suggest that balance-sheet expansion and revenue growth have not always moved in tandem, which can happen when yield, mix, or recognition patterns change. For investors, this puts additional focus on NIM stability and credit costs, because they can compensate for softer revenue growth in the near term. The mention of “first time in last three years” also frames why the latest quarter’s profitability surprise mattered.

Conclusion: what to watch next

Bandhan Bank’s latest rally reflects improving confidence around margins and credit costs, supported by management guidance and multiple brokerage revisions. Near-term attention is likely to stay on whether NIM expansion follows the 10-20 bps guidance over the next 2-3 quarters and whether credit costs stay near the improved levels cited. Investors will also track the EEB portfolio trajectory, since several notes link recovery and collections to the easing stress narrative. The bank’s ability to sustain 14-15% loan growth guidance alongside deposit repricing will be watched closely. With the stock also discussed in the context of prior valuation de-rating and longer-term underperformance, each quarterly datapoint on asset quality and margins may continue to drive sharp reactions.