Shares of Bandhan Bank rose around 1.5% on October 29, 2026, following the private sector lender’s strong second-quarter earnings for the financial year 2026–27. The bank reported a net profit of ₹622 crore, compared with ₹112 crore in the corresponding period last year, representing an increase of more than fivefold.

The improvement in profitability was supported by better asset quality and lower bad-loan provisions. The bank’s gross non-performing asset ratio declined to 3.11% at the end of September 2026, compared with 5.02% a year earlier. Net interest income increased 14% year-on-year to approximately ₹2,960 crore, reflecting growth in core lending income.

Despite the strong earnings performance, brokerages remained cautious about the stock's outlook. Nomura maintained its Neutral rating on Bandhan Bank but reduced its target price to ₹175 from ₹190. The brokerage valued the lender at 0.9 times its estimated book value per share for September 2028, compared with its earlier valuation of one times the estimated book value for March 2028.

CLSA also lowered its price view on the stock, indicating that the sharp improvement in quarterly profitability has not eliminated all concerns about its valuation and future performance.

The market reaction reflects the balance between improving financial performance and cautious brokerage expectations. Investors will likely continue to monitor asset quality, credit costs, loan growth and the sustainability of earnings recovery to assess the bank's outlook.