Bandhan Bank shares slump over 15 pc after guidance cut

Mumbai, July 22 (IANS) Bandhan Bank shares plunged more than 15 per cent on Wednesday after the lender trimmed its return‑on‑assets (RoA) outlook, despite reporting a stronger‑than‑expected quarterly profit.

The Kolkata‑based bank said it now expects RoA to average 1.2–1.4 per cent by the end of FY27, down 40 basis points from its earlier expectation of 1.6–1.8 per cent.

The bank expects a dip in RoA due to narrower net interest margins and higher operating expenses.

Bandhan Bank shares were trading at Rs 176.95 intra-day, down Rs 31.88 or 15.27 per cent on a daily basis.

"Our medium-term strategic objective remains unchanged, and we continue to work towards achieving the guided level of RoA (return on assets). The prevailing external environment may influence the pace at which we get there," Managing Director and Chief Executive Officer, Partha Pratim Sengupta, said at a post-earnings analyst conference call.

Return on assets of the bank stood at 1 per cent by June-end up 20 bps on an annual basis but 11 bps lower sequentially. External uncertainties leading to higher funding costs and higher-technology related expenses led to the deviation in the guidance, he added.

Bandhan reported a 35 per cent year‑on‑year rise in net profit to Rs 502 crore for Q1 FY27, up from Rs 372 crore a year earlier. Net interest income (NII) rose 5.9 per cent to Rs 2,921 crore, while net total income edged up 1.2 per cent to Rs 3,524 crore.