Partha Pratim Sengupta, MD & CEO, Bandhan Bank
| Photo Credit:
DEBASISH BHADURI
Private sector lender Bandhan Bank on Thursday reported a 51.79 per cent year-on-year (y-o-y) fall in its net profit to ₹205.59 crore for the third quarter this fiscal, as its non-interest income and net interest income (NII) witnessed decline during the period.
The lender’s non-interest income and NII declined 37.85 per cent and 4.48 per cent y-o-y, respectively, during the third quarter, resulting in a fall in the operating profit by 28.51 per cent y-o-y, to ₹1,445 crore compared with ₹2,021.36 crore in the year-ago period.
On a sequential basis, the bank’s net profit grew 83.77 per cent quarter-on-quarter in Q3 as against ₹111.87 crore in the second quarter this fiscal, according to a stock exchange filing. It had posted a net profit of ₹426.48 crore in the third quarter last fiscal.
During the period under review, NII decreased to ₹2,688.3 crore from ₹2,814.3 crore in Q3FY25.
Repo rate effect
MD and CEO Partha Pratim Sengupta told media persons that the Reserve Bank of India’s decision to cut the repo rate impacted the bank’s net interest income. “You know that 35 basis point repo cut was almost upfronted, which we need to pass on. So, it is having an impact of almost ₹300 crore,” Sengupta said.
On the drastic fall in non-interest income on a y-o-y basis, he said the bank had received around ₹535 crore on account of Credit Guarantee Fund for Micro Units (CGFMU) during Q3FY25 and this is nil in the third quarter this fiscal.
“So if we can adjust those one-off receipt and one-off expenses, the actual profit last year (Q3FY25) was around ₹130 crore,” the MD pointed out.
The bank’s non-interest income for Q3FY26 decreased to ₹691.01 crore from ₹1,111.83 crore during the same period last fiscal. Provisions for the period saw a decline of around 16 per cent y-o-y at ₹1,154.63 crore compared with ₹1,376.01 crore in the year-ago period.
During the quarter, the lender sold stressed assets worth over ₹6,800 crore to two asset reconstruction companies — Asset Reconstruction Company (India) Ltd (ARCIL) and Phoenix ARC.
“We sold ₹3,707 crore of written-off portfolio, which was realised at a valuation of roughly 9 per cent. Out of the total security receipts (SR) issued for this portfolio, our share stood at about 32 per cent. On the cash side, we received ₹126 crore, and this inflow has been recorded as under other income,” Sengupta said.
“In addition to this, we sold ₹3,165 crore of NPA, unsecured loan, at a valuation of around 18 per cent. Our share of SR for this pool was approximately 47 per cent. The transaction generated ₹303 crore of cash for the bank, and this has been used to offset our provisions under the provisions line item in the profit and loss account,” he added.
During Q3FY26, gross non-performing assets (GNPA) ratio fell to 3.33 per cent from 4.68 per cent in the year-ago period. Net NPA ratio stood at 0.99 per cent compared to 1.28 per cent.
Published on January 22, 2026
