Bandhan Bank stock falls 19% despite 35% jump in Q1 net profit

Bandhan Bank reported Q1 net profit of ₹502 crore, up 35% year-on-year. Under normal circumstances, that kind of headline growth would support the stock. Instead, shares have fallen nearly 19% over the past few sessions.

The trigger was forward guidance, not the quarter's results. Management officially lowered its exit Return on Assets (RoA) target for FY27 to a range of 1.2%–1.4%, down from the previously guided 1.6%–1.8%.

Underneath the profit headline, the operating picture was weaker. Pre-provision operating profit (PPoP) fell 19% year-on-year, meaning the net profit jump came entirely from lower credit provisions rather than stronger core business performance.