Net total income declined 11.5% YoY to Rs 3,135 crore from Rs 3,543 crore in the corresponding quarter last year. The bank’s net interest income (NII) fell 11.8% to Rs 2,589 crore from Rs 2,934 crore a year ago. The net interest margin (NIM) stood at 5.8%, registering a 152 basis points (bps) y-o-y decline.

Operating profit dropped 29.4% YoY to Rs 1,310 crore from Rs 1,855 crore in Q2 FY25. Meanwhile, provisions and contingencies surged 90.26% to Rs 1,153 crore compared to Rs 606 crore in the same quarter last year, eroding bottom-line performance.

On the balance sheet front, gross advances stood at Rs 1.4 lakh crore, up 7% YoY and 5% QoQ, indicating moderate credit growth. Secured advances rose 25% YoY, now accounting for 55% of total advances versus 47% a year earlier.

Within the lending mix, retail (non-housing) loans grew 66% YoY, wholesale banking rose 27%, and the housing portfolio expanded 12%. However, the bank’s core microfinance (EEB) book saw a 13% YoY decline. Non-EEB advances grew 24% YoY, now contributing 63% to the total loan book compared with 55% in Q2 FY25.

On the liability side, total deposits rose 11% YoY to Rs 1.6 lakh crore, with a 2% sequential growth. CASA deposits stood at Rs 44,211 crore, translating into a CASA ratio of 28%. The CASA + retail term deposits to total deposits ratio was 71%, highlighting a stable funding base.

In terms of asset quality, gross NPAs remained steady at 5%, while net NPAs stood at 1.4%, unchanged from Q1 FY26. The provision coverage ratio (PCR) was at 73.7%, while collection efficiency for Emerging Entrepreneurs Business (EEB) loans improved marginally to 98%.

The bank’s capital adequacy ratio (CAR) stood strong at 18.6% as of 30 September 2025, comfortably above the regulatory requirement of 11.5%.

Commenting on the performance, Partha Pratim Sengupta, MD & CEO, said, "Bandhan Bank's current quarter performance reflects a transitional phase for the bank as we continue to realign towards a more diverse and resilient portfolio. As we drive this transformation, we are looking to achieve a balanced profitable growth to drive sustainable long term value creation for our stakeholders. By focusing on innovation in technology, refining our processes, and enhancing products and people capabilities, we are well-positioned to drive the next phase of growth for Bandhan Bank 2.0."

Bandhan Bank is a private sector bank. Its distribution network spans nearly 6,350 outlets. It added 9 lakh customers during the quarter and current customers stand at over 3.23 crore customers. The bank currently has over 73,500 employees.