Bandhan Bank Q4FY26 sparks rally; targets up to ₹220

Stock jumps to a fresh 52-week high

Bandhan Bank shares surged in early trade after the private sector lender reported March 2026 quarter (Q4FY26) results that were broadly in line with expectations. On the NSE, the stock rallied over 10% to a 52-week high of ₹199.59. Around 09:35 AM, it was up 9.25% at ₹195.20 versus the previous close of ₹178.65.

On the BSE, the stock was reported trading 10.68% higher at ₹197.35, with an intraday high of ₹198 and an intraday low of ₹185. The sharp move came as brokerages highlighted improving asset quality trends and a sharp reduction in credit costs.

Broader market context

The move in Bandhan Bank played out on a positive day for the broader market. The Nifty50 was quoted around the 24,100 mark, up about 0.43% (around 105 points) in the morning session. Despite limited movement in Bank Nifty in some updates, stock-specific buying was visible in select banking names, including Bandhan Bank.

Price action and recovery from lows

Bandhan Bank’s recent rally has also been framed as a recovery phase from its recent trough. The stock has recovered around 46% from its 52-week low of ₹134.25, which was touched on December 9, 2025. The rally to a new 52-week high marked a significant turnaround in sentiment around the name.

Market capitalisation was reported at ₹31,441.47 crore on the NSE, while another update pegged it at ₹31,784.61 crore on the BSE during the session.

Q4FY26 profit jumps to ₹534 crore

In Q4FY26, Bandhan Bank reported a net profit (PAT) of ₹534 crore, up from ₹318 crore in the year-ago quarter, translating to a 68%-69% year-on-year rise as cited across reports. Sequentially, PAT rose sharply from ₹206 crore in Q3FY26.

Earnings per share (EPS) for the quarter stood at ₹3.32 compared with ₹1.97 in Q4FY25 and ₹1.28 in Q3FY26. The improved bottom line was a key reason cited by brokerages for a positive near-term re-rating.

Net interest income and income trends

Net interest income (NII) in Q4FY26 came in at ₹2,795.4 crore (also cited as ₹2,796 crore in one update), compared with ₹2,756 crore in Q4FY25. On a sequential basis, NII rose from ₹2,684 crore reported in Q3FY26.

Net total income was reported at ₹3,567 crore in Q4FY26 versus ₹3,456 crore in Q4FY25. Sequentially, it increased from ₹3,361 crore in Q3FY26.

Asset quality: GNPA around 3.3%, NNPA at 1.0%

On asset quality, Bandhan Bank reported improvement in gross non-performing assets. Gross NPA was stated at 3.3% (with one report citing 3.27%), improving from 4.7% year-on-year. Net NPA declined to 1.0% from 1.3%.

Provision Coverage Ratio (PCR) stood at 84.9%. Broker notes pointed to lower slippages and better collections, particularly in the EEB portfolio, as supportive factors.

Balance sheet: advances and deposits grow in double digits

As of March 31, 2026, gross advances rose 12.6% year-on-year to ₹1,54,233 crore, compared with ₹1,36,995 crore in the previous year. Total deposits increased 10% year-on-year to ₹1,66,344 crore from ₹1,51,212 crore.

CASA deposits were reported at ₹48,752 crore. The growth numbers were highlighted as part of the bank’s improving operating trajectory.

Dividend and management actions

The board recommended a dividend of ₹1.50 per equity share (face value ₹10 each), described as 15%, for the financial year ended March 31, 2026. This is subject to shareholders’ approval at the ensuing Annual General Meeting.

The board also approved senior appointments. Mr Surajit Roy Choudhury was appointed Head – Emerging Entrepreneurs Business with effect from June 30, 2026, and Mr Sujoy Roy was appointed National Collection Head for all lending products with effect from April 28, 2026.

What brokerages said: JM Financial, Emkay, Motilal Oswal

JM Financial said Bandhan Bank delivered a strong Q4FY26 performance, supported mainly by significantly lower provisions and continued improvement in asset quality. It said operating profit was broadly in line, while net interest margins expanded 11 bps quarter-on-quarter, aided by a 39 bps decline in cost of funds, partly offset by lower yields. Credit costs were said to have declined 149 bps quarter-on-quarter to 1.9% (from 3.1% estimated by JMFe), driven by lower slippages and better collections.

JM Financial upgraded valuation to 1.1x FY28E BVPS from 0.9x earlier and raised its target price to ₹200 from ₹160, while maintaining an ‘Add’ rating. It also said the bank is transitioning from a clean-up phase to an earnings recovery phase, supported by faster-than-expected improvement in microfinance stress and stronger growth in non-EEB businesses.

Emkay Global Financial Services maintained a ‘Buy’ rating and raised its target price by 22% to ₹220 from ₹180, valuing the stock at 1.2x FY28E ABV. It projected RoA to improve to 1.3%-1.7% over FY27-FY29E, compared with 0.6% in FY26, and said credit costs are projected to ease to 1.6%-1.7% from 2.6%. Emkay flagged risks including slower-than-expected growth, delays in asset quality recovery, elections in West Bengal and Assam, and potential weather-related disruptions from El Niño.

Motilal Oswal maintained a ‘Buy’ rating and revised its target to ₹210 per share. It highlighted a sequential improvement in NIMs to 6.2% and cited management guidance of a further 10-20 bp expansion over the next 2-3 quarters, aided by repricing of term deposits. Motilal Oswal said it upgraded earnings estimates by 4%-5% for FY27/FY28 and expects RoA of 1.3% in FY27E and 1.5% in FY28E versus 0.6% in FY26.

Key numbers at a glance

Broker target price changes

Market impact and why the quarter mattered

The results helped shift the narrative toward normalisation after a period of portfolio clean-up, as brokerages pointed to improving collections and lower credit costs. The sharp move to a 52-week high showed that the market was quick to price in better near-term visibility on returns.

Even with NII growth remaining modest year-on-year, the improvement in profitability and reported asset quality metrics provided a clear trigger for target upgrades. The dividend recommendation also added to the list of positives for investors tracking shareholder payouts.

Management commentary in focus

MD and CEO Partha Pratim Sengupta said the bank’s FY 2025-26 performance underscores the strength of its franchise, supported by disciplined execution and a diversifying business model. He added that the bank will continue to pursue customer-centric, digital-led growth by enhancing distribution channels, expanding its product suite, and leveraging data-driven insights to deliver sustainable, risk-adjusted growth.

Conclusion

Bandhan Bank’s Q4FY26 print, led by a jump in PAT to ₹534 crore and improved asset quality indicators, pushed the stock to a fresh 52-week high and triggered higher brokerage targets up to ₹220. The next key milestones for investors include follow-through in credit cost trends, progress in collections, and shareholder approval for the ₹1.50 per share dividend at the upcoming AGM.