Bandhan Bank Q3 Results: Bandhan Bank share price moved sharply higher on Friday, January 23, rising over 5% during intraday trade. It is trading at one-month high, rising the most in nine months as investor sentiment improved following brokerage upgrades from Motilal Oswal and JM Financial after the lender’s December quarter (Q3FY26) performance. The gains came despite broader market weakness, highlighting renewed optimism around the bank’s turnaround narrative.
The stock climbed as much as 5.5% to an intraday high of ₹150.50, as market participants reacted positively to signs of improving asset quality and management commentary, even though some metrics remained under pressure.
Bandhan Bank Q3 Results
Bandhan Bank reported a sharp 83.9% sequential jump in standalone net profit to ₹205.99 crore in Q3FY26, compared with Q2FY26, supported by better margins and improving asset quality. Total income during the quarter rose 7.8% quarter-on-quarter to ₹6,122.24 crore.
However, on a year-on-year basis, profitability remained under strain. Net profit declined 51.6% YoY to ₹205.6 crore, down from ₹426 crore in the corresponding quarter last year. Net interest income (NII) fell 4.5% YoY to ₹2,869 crore, compared with ₹2,814 crore in the year-ago period.
Sequentially, NII showed improvement. NII stood at ₹2,688 crore in Q3FY26, compared with ₹2,589 crore in Q2FY26, marking a 3.8% QoQ growth. Net Interest Margin (NIM) also improved modestly, rising to 5.9% in Q3FY26 from 5.8% in the previous quarter.
On the asset quality front, the bank delivered a notable improvement. Gross non-performing assets (GNPA) declined by 169 basis points to 3.3% in Q3FY26, from 5% in Q2FY26. Net NPA also improved, falling 38 basis points to 1%, compared with 1.4% in the previous quarter.
As of December 31, 2025, Bandhan Bank’s total deposits stood at ₹1.57 lakh crore, up from ₹1.41 lakh crore a year earlier, translating into 11% year-on-year growth.
Commenting on the quarterly performance and the road ahead, MD & CEO Partha Pratim Sengupta highlighted the steady progress made over recent quarters and outlined the bank’s priorities going forward.
“Bandhan Bank’s third-quarter performance over the last quarters reflects the strengthening fundamentals and steady turnaround. In Q4, we are set to accelerate multiple digital initiatives aimed at enhancing customer experience, operational efficiency, and scalability,” Sengupta said.
“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.”
Bandhan Bank Q3 Review
Following the Q3 performance, Motilal Oswal upgraded Bandhan Bank to ‘Buy’ and raised its target price to ₹175 per share, implying an upside of 22% from Thursday’s closing price.
The brokerage noted that Bandhan Bank had gone through a prolonged NPA cycle, which weighed on growth and profitability, resulting in an average RoE of just 8% over the past five years. Motilal Oswal had earlier downgraded the stock to ‘Neutral’ in January 2021 at ₹341.
With asset quality stabilising and margins gradually normalising, the brokerage now expects operating performance to improve meaningfully. It estimates return on assets (RoA) of 1.3%–1.5% in FY27–FY28, compared with 0.6% expected in FY26. After five years of valuation de-rating, Motilal Oswal said current valuations appear reasonable, even while remaining cautious about risks linked to upcoming West Bengal elections.
JM Financial also upgraded the stock to ‘ADD’ with a target price of ₹160. The brokerage highlighted an operating profit of ₹14.5 billion, driven by higher other income and a 10 basis point QoQ margin expansion, partly offset by 6% QoQ rise in operating expenses. While profit after tax rose 84% QoQ to ₹2.1 billion, it came in 10% below JM Financial’s estimates, largely due to elevated credit costs of around 3.4%.
Management maintained its FY27 exit credit cost guidance at around 1.6%–1.7% and guided for loan CAGR of 15%–17% over the next 2–3 years. JM Financial expects loan CAGR of around 15% over FY26–FY28, with average RoA/RoE of around 1.2%/11% for FY27–FY28.
In contrast, HDFC Securities maintained a ‘Reduce’ rating with a revised target price of ₹130, citing higher-than-expected credit costs, muted deposit growth, and continued stress in the micro-banking portfolio. The brokerage cut its FY26–FY28 earnings estimates by up to 42%, flagging a prolonged path toward portfolio stability.
Bandhan Bank stock price trend
Bandhan Bank shares surged to ₹150.50 during Friday’s session. Over the past year, the stock has remained largely flat but has faced pressure in the medium term, falling 17% in the last six months and 12% in the past three months. Over a longer horizon, the banking stock has declined 52% over the last five years.
The stock touched its 52-week low of ₹128.15 in February 2025, while another low of ₹192.45 was recorded in June 2025, underscoring the volatility investors have navigated during the bank’s turnaround phase.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
