Bandhan Bank’s shares declined over 4% as investors reacted to weaker-than-expected quarterly results. The lender reported a Q2 net profit of ₹635 crore, down 7% sequentially, impacted by higher provisions for potential loan losses. Revenue growth remained stable, but asset quality pressures persisted in microfinance portfolios. Analysts noted that continued provisioning could affect near-term profitability, though credit demand remains firm. Brokerages expect the bank’s metrics to improve gradually as its retail book expands and credit costs normalize through FY26.