Bandhan Bank’s Q2 profit plunges 88% as provisions rise
Times of India | 31 October 2025
Kolkata: Bandhan Bank on Thursday reported a profit-after-tax (PAT) of Rs 112 crore in Q2FY26, an 88% drop compared to the same period last year. The drop was mainly due to higher provisioning, a major part being slippage in the microfinance sector.
The bank is looking to realign towards a more diverse and resilient portfolio away from microfinance. It had posted Rs 937 crore PAT in Q2FY25.
"Our Q2 performance is below our own expectations. However, we expect that different measures like enhancement in collection, and prudent risk management will contribute to our growth," said Partha Pratim Sengupta, MD & CEO, Bandhan Bank.
In Q2FY25, the contribution of the bank's lending towards the microfinance sector was 47% of its total advances, which dropped to 37% during July-Sept FY26. "It will impact us as the microfinance sector is more profitable. But we are trying to achieve more growth in the non-microfinance category. Our focus will be more on secured-based lending," said Sengupta. He added that the bank's exposure towards the microfinance sector will probably go down to 30%-32% of total advances in the next 2-3 years.
Bandhan Bank also plans to introduce credit cards in the current fiscal.