Bandhan Bank shares slide 4% after 65% Q1 profit drop — should you buy, sell or hold?

Bandhan Bank share price slipped over 4 per cent in early trade on July 21, after the private lender reported a 65 per cent year-on-year drop in net profit for the June quarter (Q1 FY26). The stock was trading at Rs 179 on the NSE, pulling back after four consecutive sessions of gains.

Bandhan Bank Q1 Results Highlights

Bandhan Bank Q1 results were released post-market hours on July 18. The lender reported a net profit of Rs 372 crore, sharply lower than Rs 1,063 crore in the year-ago quarter. The miss was largely attributed to weaker net interest income (NII) and higher credit costs.

The bank’s NII came in at Rs 2,757 crore, down nearly 8 per cent year-on-year, while total income rose marginally to Rs 6,201.49 crore from Rs 6,081.73 crore in Q1 FY25. Asset quality also deteriorated, with net non-performing assets (NPA) rising 25 per cent YoY to Rs 1,744 crore, and the net NPA ratio climbing to 1.36 per cent.

Brokerage View: Should you Buy, sell or hold

Despite the weak earnings, major brokerages shared mixed views on Bandhan Bank stock, with some maintaining positive outlooks for the longer term:

CLSA retained a Buy rating, with a target price of Rs 220, though it cut estimates by 13–36 per cent due to lower PPOP growth. CLSA noted improved slippages but flagged concerns over CASA ratio and a shrinking loan book in the microfinance segment.

Macquarie maintained an Outperform rating, with a target of Rs 210. It highlighted elevated credit costs and pressure on net interest margins, expecting near-term challenges in achieving its FY26 ROA target of 1.5 per cent.

JP Morgan, on the other hand, kept a Neutral stance with a revised target of Rs 155, citing concerns over continued NIM compression and a shift in loan mix toward lower-yield secured assets.

Despite the Q1 disappointment, Bandhan Bank shares have gained over 2.5 per cent in the past five trading days, and are up 22 per cent in the last six months. Year-to-date in 2025, the stock has risen 15 per cent, although it remains down 7 per cent on a one-year basis.