Bandhan Bank Q3 Results: Net Profit Jumps 84% QoQ To Rs. 206 Cr; Asset Quality Remains Stable

At its meeting in Kolkata on Thursday, January 22, 2026, Bandhan Bank announced its financial results for the quarter and nine months that ended on December 31, 2025. For the quarter that ended on December 31, 2025, the profit after tax was Rs. 206 crore, up 84% from Rs. 112 crore in Q2FY26. For the quarter that ended on December 31, 2025, the financial results showed steady operational momentum.

The bank's net revenue increased 7.8% QoQ to Rs 3,379 crore in Q3 FY26 from Rs 3,135 crore in Q2 FY26.

Net Interest Income (NII) also showed strong sequential growth, rising by 3.8% QoQ to Rs 2,688 crore in Q3 FY26 from Rs 2,589 crore in the previous quarter. The bank's solid profitability measures were reinforced by the Net Interest Margin (NIM), which increased to 5.9% in Q3 FY26 from 5.8% in Q2 FY26, thanks to a better asset mix and stable funding expenses.

Total deposits as of December 31, 2025, were Rs 1.57 lakh crore, up 11% from Rs 1.41 lakh crore the year before. The CASA ratio stayed steady at 27% while CASA deposits totalled Rs 42,730 crore. Remarkably, over 72% of total deposits were made up of CASA plus retail term deposits, indicating a granular and somewhat inexpensive funding profile.

Advances on the lending side kept increasing steadily. As of December 31, 2025, gross advances have grown by 10% YoY from Rs 1.32 lakh crore to Rs 1.45 lakh crore. Strong momentum in the retail sector drove the rise, which was widespread. The retail loan book grew by 57% YoY, while wholesale banking had a 32% growth.

Throughout the quarter, asset quality metrics held steady. In Q3 FY26, EEB loan collection efficiency climbed to 98.2%, demonstrating strict credit evaluation and efficient recovery procedures. Furthermore, as of December 31, 2025, the Provision Coverage Ratio (including technical write-offs) was a comfortable 84.3%, offering a robust cushion against foreseeable credit stress.

The bank's financial performance for the nine months that ended on December 31, 2025, showed a mixed pattern that was influenced by high provisioning levels. Compared to Rs 11,002 crore in 9M FY25, net revenue for 9M FY26 was Rs 9,997 crore. While the Net Interest Margin (NIM) held steady at 6.0%, highlighting the tenacity of the core lending business, Net Interest Income (NII) also decreased to Rs 8,034 crore in 9M FY26 from Rs 8,735 crore in the same period last year.

Operating profit for the nine-month period declined to Rs 4,424 crore in 9M FY26 from Rs 5,817 crore in 9M FY25, largely due to higher credit costs and conservative provisioning. A conservative approach to asset quality and balance-sheet strengthening can be seen in provisions (excluding tax) and contingencies, which rose to Rs 3,454 crore during the quarter from Rs 2,505 crore during the same period previous year.

Over the course of the nine months, profitability was steady despite higher provisions. Compared to Rs 2,427 crore in 9M FY25, profit after tax for the nine months ending December 31, 2025, was Rs 689 crore.

Return ratios reflected this trend, with Return on Assets (RoA) at 0.5% and Return on Equity (RoE) at 3.6% on an annualised basis for the nine months.

MD & CEO, Partha Pratim Sengupta said, "Bandhan Bank's third quarter performance over the last quarters reflects the strengthening fundamentals and steady turn around. In Q4, we are set to accelerate multiple digital initiatives aimed at enhancing customer experience, operational efficiency, and scalability. We remain fully committed to building a strong, more resilient and more diversified bank. These efforts position us well for sustainable and profitable growth going forward."

With more than 6350 banking outlets, Bandhan Bank has expanded across 35 of India's 36 states and union territories in the previous few years of existence. As of December 31, 2025, Bandhan Bank had a deposit base of Rs. 1.57 lakh crores, thanks to its trust of 3.25 crore customers. As of December 31, 2025, Bandhan Bank's advances were Rs. 1.45 lakh crore, demonstrating the bank's steady expansion.