Mumbai, July 18 (IANS) Partha Pratim Sengupta-led Bandhan Bank on Friday reported a sharp 65 per cent year-on-year (YoY) drop in its net profit for the first quarter of the current financial year (Q1 FY26), with earnings falling to Rs 372 crore compared to Rs 1,064 crore in the same period in previous fiscal (Q1 FY25).

The fall in profit was accompanied by a decline in the bank’s net interest income (NII), which slipped 7.7 per cent to Rs 2,757.2 crore from Rs 2,986.6 crore in Q1 FY25, according to its stock exchange filing.

The bank’s net interest margin (NIM) stood at 6.4 per cent during the quarter. Despite the YoY decline, the bank’s performance showed improvement on a sequential basis.

Net profit rose 17 per cent compared to the previous quarter, the company said in its regulatory filing.

Bandhan Bank’s net revenue during the June quarter came in at Rs 3,483 crore, slightly lower than Rs 3,533 crore reported in the year-ago period.

The net operating profit also declined 14 per cent YoY to Rs 1,668 crore, down from Rs 1,941 crore in Q1 FY25.

Commenting on the performance, Managing Director and CEO Partha Pratim Sengupta said the bank delivered a sequentially improving performance, driven by strong growth in deposits and steady momentum in both retail and wholesale banking.

He added that while the overall operating environment remains challenging, the bank’s results show the resilience of its business and the strength of its strategy.

As of June 30, Bandhan Bank’s total deposits rose 16 per cent YoY to Rs 1.55 lakh crore from Rs 1.33 lakh crore a year ago.

Retail term deposits saw strong growth, rising 34 per cent to Rs 63,661 crore. The share of retail deposits in the total deposit base stood at 68 per cent.

Gross advances for the quarter rose 6 per cent to Rs 1.34 lakh crore, compared to Rs 1.26 lakh crore in the year-ago period.

The bank’s customer base stood at 3.14 crore, supported by a wide distribution network of nearly 6,350 outlets and a workforce of over 73,000 employees.

Ahead of the earnings announcement, shares of Bandhan Bank closed 0.11 per cent higher at Rs 185.40 apiece on the National Stock Exchange (NSE).

–IANS

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