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SBI Mutual Fund Crosses 5% Stake in Bandhan Bank as Profit Jumps 68%

SBI Mutual Fund has raised its stake in Bandhan Bank above 5% after fresh buying as NPAs decline and earnings improve, with RBI approval to increase its holding up to 9.99%, boosting its future outlook.

Written By : Simran Mishra
Reviewed By : Manisha Sharma

SBI Mutual Fund’s stake in Bandhan Bank has exceeded 5%. This shows that big investors are slowly increasing their trust in the bank.

As per the latest update, SBI Mutual Fund bought 16,98,478 shares on May 20, 2026, pushing its total shares to 8,12,46,734. The total stake is now 5.0432%, up from 4.9378%. 

SBI Mutual Fund Stake Crosses 5%

According to stock market rules, any holding above 5% must be reported to avoid hidden corporate takeovers and market manipulation. SBI Mutual Fund’s move comes at a time when Bandhan Bank reported decent results for the last quarter of FY26. 

Its profit reached Rs. 530 crore, a 68% surge compared with last year. The margin also grew strongly compared to the previous quarter.

The bank earned a net interest income of Rs. 2,800 crore, while the total income stood at Rs. 3,570 crore. 

Bandhan Bank Earnings Show Improvement

Gross NPA reduced to 3.3% from 4.7% last year. Net NPA also dropped to 1% from 1.3%. This means the bank has also improved its loan quality.

Bandhan Bank shares have also moved up in recent months. The stock gained over 10% in one month and around 14% in three months. It has seen a 35% surge this year, indicating positive market sentiment.

However, the long-term outlook is not fully strong. The stock has declined over the last three and five years, highlighting market volatility.

Future Growth and Market Watch

SBI Mutual Fund may increase its stake as the Reserve Bank of India has increased the limit to 9.99%. This means more buying can happen in the future.

Bandhan Bank is also planning to increase its customer reach through digital services and improved products.

Despite future prospects, the bank is under pressure as its operating profit dropped slightly. Bandhan Bank has set aside Rs. 677 crore as a safety measure for potential risks.

Overall, SBI Mutual Fund's stake in Bandhan Bank shows growing interest from institutional investors. Improved earnings and loan quality support this trend. The upcoming months will play a crucial role in shaping the bank’s performance.

Also Read: How Fintech Companies Challenge Established Banking Giants

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