Bandhan Bank reported a 35% rise in net profit for Q1 FY27, reaching ₹1,030 crore, but its shares plunged nearly 17% as the bank significantly lowered its future Return on Assets (RoA) guidance. This unexpected cut dampened despite strong headline profit growth.
₹1,030 crore
Q1 FY27 Net Profit
Q1 FY26: ₹763 crore→₹1,030 crore
📊 One chart explains it
Bandhan Bank RoA Guidance Shift
Takeaway: The chart illustrates Bandhan Bank's significant downward revision of its Return on Assets (RoA) guidance for both FY27 and FY28, signaling a more cautious outlook.
⏳ Time Machine
How today’s news fits into the bigger picture
April 2014
RBI grants universal bank license
Bandhan, then India's largest microfinance institution, received an in-principle approval from the Reserve Bank of India to convert into a universal bank, marking a pivotal moment for its expansion beyond micro-lending.
August 2015
Bandhan Bank officially launched
Bandhan Bank commenced operations as a full-fledged commercial bank with 501 branches and 50 'micro-banking' units, focusing on financial inclusion in underserved areas.
March 2018
Successful IPO listing
Bandhan Bank went public with an initial public offering (IPO) that was oversubscribed more than 14 times, raising approximately ₹4,473 crore and marking a strong debut on Indian bourses.
FY21-FY22
Asset quality challenges emerge
The bank faced significant asset quality deterioration, particularly in its micro-credit portfolio, due to the COVID-19 pandemic and regional socio-political events, leading to elevated Gross NPAs of over 10% in some quarters.
Q4 FY26
Improved asset quality and growth
Bandhan Bank reported a strong Q4 FY26, with net profit rising significantly and a noticeable improvement in asset quality, setting a positive tone for the upcoming fiscal year.
Today
Bandhan Bank's Q1 FY27 net profit increased 35%, but a lowered Return on Assets (RoA) guidance led to a ~17% stock plunge.
What happens next?
Bandhan Bank's Q2 FY27 results, expected around October 2026, will be crucial to see if the bank can meet its new, more conservative RoA targets and regain investor confidence.
Kolkata-based Bandhan Bank announced a robust 35% year-on-year increase in its Q1 FY27 net profit, hitting ₹1,030 crore. However, this positive news was overshadowed by the bank's decision to sharply reduce its Return on Assets (RoA) guidance for FY27 and FY28. Initially targeting an RoA of 2.2% to 2.5% for FY27, the bank revised it downwards to a range of 1.7% to 1.9%, and for FY28, it projects 1.8% to 2.0% instead of the earlier 2.5% to 2.8%. This cautious outlook on future profitability triggered a sharp decline in its stock price, with shares falling by nearly **17%** on Wednesday. Despite healthy growth in Net Interest Income (NII) and improved asset quality, the revised guidance signals potential headwinds, leading investors to re-evaluate the bank's long-term prospects.
💭 If you're wondering…
Return on Assets (RoA) is a financial ratio that shows how efficiently a company uses its assets to generate profit. For banks, it indicates how well they convert deposits and other assets into net income. A higher RoA generally means the bank is more profitable and efficient.
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