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Bandhan Bank weakness drags sentiment across mid tier lenders
Bandhan Bank’s profit plunged on higher provisions, unsettling investors about margins and credit costs.
Bandhan Bank shares fell after quarterly results showed an 88% year-on-year profit slump driven by sharply higher provisions. Operating profit declined and credit costs surged, offsetting moderate loan growth. Provision coverage stood near 74%, while secured advances rose, improving portfolio mix composition. Investors worry about margin compression and asset-quality volatility persisting. Analysts expect commentary on collections, slippages, and capital buffers to guide the outlook. Peers may face sentiment spill-over, favouring lenders with stable funding, diversified books, and disciplined risk controls into the December quarter and beyond.