Bandhan Bank's profit drops 65% as bad loans spike
Bandhan Bank just had a rough quarter—its profit dropped 65% compared to last year, landing at ₹372 crore.
The main culprit? A spike in bad loans and the need to set aside a lot more money to cover them.
Bad loans at 5%; provisions more than doubled
The bank's bad loans (NPAs) jumped to 5%, up from 4.2% last year, especially hitting microfinance and the eastern region.
To handle this, Bandhan had to more than double its provisions, which squeezed profits even further.
On the flip side, total deposits grew by 16%. Interestingly, over half of their loan book is now secured loans—a jump from last year.
Lesson for other banks and fintechs
If you follow banks or fintech news—or just want to know how financial stress can ripple through big institutions—this is a real-world example of how rising defaults shake up profits and change how banks do business.