Bandhan Bank Q1 FY27 Results (NSE: BANDHANBNK)
Signal: Earnings grew
The read
The Q1FY27 inflection is provision-led rather than operating-led: PAT rose 34.9% to ₹50,166.87 lakh as provisions fell 40%, while operating profit declined 18.6% to ₹1,35,810.36 lakh, NIM held at 6.2%, and gross advances grew 16% with GNPA improving to 3.15%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,234.38 Cr | +0.5% | +0.6% |
| EBIT | ₹1,358.1 Cr | -18.6% | |
| Net profit | ₹501.67 Cr | +34.9% | |
| EPS | ₹3.11 | +34.6% | |
| EBIT margin | 21.8% |
P&L walk
Total income rose 0.5% YoY to ₹6,23,438.04 lakh and NII grew 5.9%, but operating profit fell 18.6% to ₹1,35,810.36 lakh as other income declined 16.8% and employee costs rose 20.9%; PAT nevertheless increased 34.9% to ₹50,166.87 lakh because provisions fell 40%.
Segments
Retail Banking remained the largest profit contributor at ₹38,418.38 lakh, but its result fell 11.6% YoY, while Wholesale Banking continued to drag the group with a ₹7,711.03 lakh loss despite revenue growth to ₹82,959.03 lakh.
Key positives
- Gross advances grew 16% YoY to ₹1.56 lakh crore, led by 45% growth in the retail book excluding housing and 38% growth in wholesale banking.
- Secured advances grew 27% YoY and reached nearly 57% of the loan book, improving the mix from a risk perspective.
- NIM held at 6.2% sequentially, while GNPA improved from 3.27% to 3.15% and NNPA from 0.97% to 0.93%.
- PAT rose 34.9% YoY to ₹50,166.87 lakh as provisions declined 40% to ₹68,258.61 lakh.
Key concerns
- Operating profit fell 18.6% YoY to ₹1,35,810.36 lakh and operating margin compressed 510bps to 21.8% because operating expenses rose 19.4% while total income grew only 0.5%.
- Retail Banking profit declined 11.6% YoY to ₹38,418.38 lakh and Wholesale Banking remained loss-making at ₹7,711.03 lakh.
- Deposits grew only 7% YoY to ₹1.65 lakh crore, materially slower than 16% advances growth, increasing the need to monitor funding costs and liquidity mix.
- Collection efficiency for EEB loans was flat at 98.5%, while gross NPA remained elevated at 3.15%.
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