Bandhan Bank witnessed a significant drop of more than 15% in its shares following a revision in its return-on-assets (RoA) projection, despite posting a better-than-expected quarterly profit. The bank, headquartered in Kolkata, now anticipates the RoA to range between 1.2% and 1.4% by the conclusion of FY27, marking a 40 basis points decrease from its previous estimate of 1.6% to 1.8%.
This adjustment in RoA forecast is attributed to a projected decline in net interest margins and an increase in operating expenses. In intra-day trading, Bandhan Bank shares were priced at Rs 176.95, reflecting a daily decline of Rs 31.88 or 15.27%.
Managing Director and Chief Executive Officer, Partha Pratim Sengupta, emphasized the bank’s unwavering commitment to achieving the targeted RoA level despite external factors potentially affecting the timeline. The bank’s return on assets for the quarter ending in June stood at 1%, exhibiting a 20 basis points rise year-on-year but an 11 basis points drop sequentially.
