Bandhan Bank Shares Fall 10 Percent as Cut to Profitability Guidance Overshadows Profit Jump

Shares of Bandhan Bank fell about 10 percent at the open on Wednesday and extended their decline to as much as about 19 percent during the session, Upstox reported, after the Indian lender cut its return-on-assets guidance, a signal that outweighed a 35 percent year-on-year rise in first-quarter net profit, the Economic Times reported. Management lowered its target for the exit return on assets in the 2026-27 financial year to a range of 1.2 to 1.4 percent, from 1.6 to 1.8 percent earlier, and warned that net interest margins would stay under pressure from higher deposit costs, according to Business Standard. The brokerage Motilal Oswal downgraded the stock to neutral, citing pressure on margins and lowering its earnings estimates for the next two years.

The results contrasted with a stronger picture elsewhere in Indian corporate earnings. Bajaj Auto rose as much as 5.7 percent to a 52-week high after reporting a 46 percent jump in quarterly net profit to 3,226 crore rupees on a 65 percent rise in revenue, the Economic Times reported, prompting Motilal Oswal to upgrade the stock to buy.

Even where prices fell, brokerages stayed positive. Shares of SBI Funds Management slipped 3 percent after their market debut, yet analysts at Emkay and Equirus maintained buy ratings, citing the parent bank's distribution reach and long-term growth prospects.

The divergence within a single day's earnings shows an Indian market that distinguishes companies by their fundamentals rather than moving in one direction. Domestic demand and financial-sector earnings continue to support sentiment, letting investors penalize a weaker margin outlook at one lender while rewarding strength at a manufacturer.