Bandhan Bank Q4 Results: Bandhan Bank share price surged 10% to hit a 52-week high of ₹196.10 on April 29 after the private sector lender reported a strong performance for Q4FY26, driven by lower provisions and improving asset quality, even as margins remained under pressure.
The sharp move in the stock reflects improving investor sentiment around the bank’s asset quality trajectory and balance sheet growth.
Profit jumps on lower provisions; asset quality improves
reported a net profit of ₹534.14 crore for the March quarter, up 68.02% YoY from ₹317.90 crore in Q4FY25. Net interest income (NII) rose 1.4% YoY to ₹2,795.6 crore, while total revenue increased 3.2% to ₹3,567 crore.
Margins, however, softened, with net interest margin (NIM) declining to 6.2% in Q4FY26 from 6.7% in the year-ago period, indicating pressure from funding costs and yield dynamics.
improved sequentially, with gross NPAs easing to 3.27% from 3.33% in the previous quarter, while net NPAs declined to 0.97% from 0.99%.
Provisions and contingencies fell sharply by 46.3% YoY to ₹677 crore, supporting profitability during the quarter.
On the balance sheet front, deposits grew 10% to ₹1.66 lakh crore, while gross advances increased 13% to ₹1.54 lakh crore as of March 2026.
For the full year FY26, net profit declined 55.43% to ₹1,223.56 crore compared to ₹2,745.30 crore in FY25. Total operating income also slipped 1.18% to ₹21,689.11 crore from ₹21,948.23 crore in the previous year.
The bank declared a of ₹1.5 per equity share, translating into a 15% payout on a face value of ₹10 per share.
Bandhan Bank share performance
In terms of stock performance, the rally has been notable, with the stock now up 46% from its 52-week low of ₹134.
The scrip has been on an uptrend in recent times. it has risen 12% in 1 week, 33% in 1 month, 31% in 3 months and 18% in the last 1 year.
Should you buy the stock?
Brokerage house JM Financial has an ‘add’ rating on the stock with a target price of ₹200.
As per the brokerage, Bandhan Bank reported a strong Q4FY26 driven by sharply lower provisions and continued improvement in asset quality. Operating profit remained broadly in-line while NIM expanded 11bps QoQ—supported by a sharp 39bps QoQ decline in CoF and partially offset by lower yields, it noted.
“Management maintained the FY27E exit RoA guidance of 1.6–1.8%. The stock is trades at an attractive ~1x FY28E P/BV. We broadly maintain EPS estimates and now value the stock at FY28E BVPS of 1.1x (earlier 0.9x FY28E BVPS), yielding a revised TP of INR 200 (up from INR 160); maintain ADD,” stated JM.
Motilal Oswal also has a buy call on the stock with a target price of ₹210.
The brokerage highlighted that Bandhan reported a strong quarter, led by a 30bp QoQ expansion in NIMs and a strong improvement in credit costs to 2% (vs. 3.3% in 3Q). Business momentum was also robust, supported by the seasonally strong 4Q. Management expects loan growth to remain healthy at 14-15%, with advances likely to grow in line with or ahead of overall business growth. It further statedt hat NIMs improved to 6.2%, and are guided to expand further by 10-20bp over the next 2-3 quarters, aided by repricing of term deposits.
“The bank has indicated an exit FY27 NIM guidance of ~6.5% on earning assets (~6% on total assets), while we conservatively factor in 6% NIM on earning assets. On asset quality, we expect improving forward flows for both the industry and Bandhan, particularly in the MFI segment, which should lower credit costs to ~1.9% in FY27E (vs. 3.2% in FY26),” said the brokerage
It added: “We had upgraded Bandhan in 3QFY26 on the back of improving visibility on growth and improvement in asset quality. We estimate Bandhan to deliver RoA of 1.3%/1.5% in FY27E/FY28E. Maintain Buy with a revised TP of INR210 (1.2x Sep’27E ABV),” it said.
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