Bandhan Bank Shares Crash Over 14% Post Q1 FY27 Results as Brokerages Review Outlook

Shares of private sector lender Bandhan Bank Limited crashed nearly 15% in morning trade on Wednesday, following the announcement of its first-quarter financial results for FY27, which triggered widespread selling and caution from market analysts.

The stock tumbled to an intraday low of ₹177.50 on the National Stock Exchange (NSE), down ₹30.48 or 14.60% from its previous close of ₹208.83. By 10:18 AM IST, the stock was trading around ₹178.35, with sell orders dominating 100% of the market order book, representing over 76.5 lakh shares queued for sale.

Higher Expenses Impact Overall Profits 

Bandhan Bank reported a 35% year-on-year increase in net profit to ₹501.67 crore for the quarter ended June 30, 2026, compared to ₹371.96 crore in Q1 FY26. This rise was mostly helped by a 41% drop in total money set aside for bad loans (provisions), which fell to ₹683 crore. Net Interest Income grew 5.9% year-on-year to ₹2,920.58 crore, but Operating Profit fell 18.6% to ₹1,358.10 crore due to higher spending on technology and daily operations. Meanwhile, loan quality improved, with Gross Non-Performing Assets (GNPA) dropping to 3.15% from 4.96% last year.

Brokerages Lower Price Targets 

After the results, major brokerages updated their ratings and price targets due to expected pressure on interest margins and lower return targets. Motilal Oswal Financial Services downgraded the stock from 'Buy' to 'Neutral' with a target price of ₹225, pointing out that management reduced its return targets because of tough competition for customer deposits. Deven Choksey Research also downgraded the stock to 'Hold' with a target price of ₹222, noting that slow deposit growth and tighter profit margins will limit the stock's upside in the near term. On the other hand, ICICI Securities kept its 'Buy' rating with a target price of ₹230, citing confidence in the bank's recovering micro-lending business.

Explaining the rise in operating expenses, Managing Director Partha Pratim Sengupta said that higher technology costs and increased employee expenses led to the rise in costs this quarter. On the stock charts, Bandhan Bank broke below its key short-term moving averages during Wednesday’s drop. Analysts expect the stock to find immediate support near the ₹172–₹175 level, with resistance now forming around ₹190.

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