Today, Bandhan Bank's shares fell by 14% as the bank announced a reduction in its FY27 Return on Assets (RoA) guidance. The new guidance now stands at 1.2–1.4%, down from the previous estimate of 1.6–1.8%.
The bank attributed this downward revision to increasing funding costs, higher technology expenditures, and ongoing uncertainties in the market. These factors have raised alarms among investors regarding the bank's future profitability.
Despite the drop in share prices, Bandhan Bank reported strong profit growth in the first quarter, alongside improvements in asset quality. However, the market's reaction indicates that investors are prioritizing the revised guidance over short-term performance.