Archive · 23 Jul 2026
Bandhan Bank Shares Drop 15% After Q1 Results
Bandhan Bank's shares fell by more than 15% after their first quarter results were released.
The bank's management said that the tough economic situation, including higher costs for borrowing money and competition for deposits, is making it harder to maintain profits.
They also mentioned that they are spending more on technology to improve their operations in the long run.
A financial analyst noted that the bank's profit margins are under pressure, and their expected return on assets has been lowered.
Despite these challenges, the bank is continuing to invest in technology to become more efficient.
Bandhan Bank shares dropped over 15% after Q1 results.
Management attributed the drop to a challenging external environment.
Net Interest Margins (NIMs) remained stable at 6.2% quarter on quarter.
Management lowered Return on Assets target to 1.2-1.4% from 1.6-1.8%.
Higher operating expenditure is driven by investments in technology.
- Who
- Bandhan Bank
- What
- Shares dropped over 15% after Q1 results
- When
- After Q1 results
- Where
- India
- Why
- Due to a challenging external environment and lower profit outlook
Challenging External Environment
Investment in Technology
Elevated Funding Costs
Challenging External Environment
Elevated funding costs and deposit competition are expected to pressure margins.
Investment in Technology
Investments in technology are expected to improve operating efficiency over the medium term.
- Net Interest Margins (NIMs)
- 6.2%
- Cost of Funds
- Elevated
- Return on Assets (RoA) Target
- 1.2-1.4% (revised from 1.6-1.8%)
- Operating Expenditure to Assets Guidance
- 4.2%
- Technology Investments
- Cloud infrastructure, hardware, software, loan origination platforms
