Bandhan Bank Q2 FY27 Results (NSE: BANDHANBNK)
Signal: Earnings grew
The read
Q2FY27 marks a sharper earnings recovery than Q1FY27: PAT growth accelerated to 455.8% YoY from 34.9% in Q1 as provisions fell 37.7%, while operating profit grew 18.8% and GNPA improved to 3.11% from 5.02%. The recovery is still provision-led rather than a pure operating inflection, with total income up a more moderate 9.5%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,458.42 Cr | +9.5% | +3.6% |
| EBIT | ₹1,556.41 Cr | +18.8% | |
| Net profit | ₹621.75 Cr | +455.8% | |
| EPS | ₹3.86 | +459.4% | |
| EBIT margin | 0% |
P&L walk
Total income rose 9.5% YoY and 3.6% QoQ to ₹6,45,842.04 lakh, operating profit increased 18.8% YoY to ₹1,55,640.54 lakh, and PAT rose 455.8% to ₹62,175.05 lakh primarily because provisions declined 37.7% YoY to ₹71,753.75 lakh.
Segments
Retail Banking drove the result with segment profit of ₹46,237.05 lakh versus a ₹4,776.08 lakh loss last year, while Wholesale Banking remained loss-making at ₹5,153.57 lakh despite segment revenue rising 34.5% YoY.
Key positives
- Gross advances grew 13% YoY to ₹1.58 lakh crore, with secured advances up 18% YoY and their mix improving to above 57% from 55%.
- GNPA declined to 3.11% from 5.02% and NNPA to 0.92% from 1.37%, indicating material asset-quality improvement.
- Operating profit increased 18.8% YoY to ₹1,55,640.54 lakh as interest expense grew only 1.0% against 9.5% total-income growth.
- Retail Banking returned to ₹46,237.05 lakh of segment profit from a ₹4,776.08 lakh loss a year earlier.
Key concerns
- PAT growth of 455.8% was dominated by a 37.7% YoY fall in provisions, while total income grew only 9.5%; earnings normalisation will depend on sustaining operating growth.
- Wholesale Banking remained loss-making at ₹5,153.57 lakh, despite segment revenue growth of 34.5% YoY.
- Employee cost increased 20.8% YoY to ₹1,30,203.60 lakh, faster than total-income growth of 9.5%.
Research and educational content only. Not investment advice.