Promises
1 promise
Promise Tracker
0 delivered, 0 close, 1 missed.
View Promises →
Bandhan Bank Ltd — Q4 FY26
Bandhan Bank delivered a strong Q4 FY26 with PAT of ₹534 crore (+68% YoY), driven by margin expansion to 6.2% (up 30bps QoQ) and sharp improvement in asset quality.
bullish
high
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Bandhan Bank delivered a strong Q4 FY26 with PAT of ₹534 crore (+68% YoY), driven by margin expansion to 6.2% (up 30bps QoQ) and sharp improvement in asset quality. Slippages fell to ₹1,028 crore (from ₹1,314 crore in Q3), led by the MFI segment where collection efficiency (ex-NPA) improved to 99.3%. The bank achieved its secured mix target of 58% a year early, with secured loans growing 25% YoY. Management guided for ROA of 1.6-1.8% by Q4 FY27, supported by further credit cost reduction (target 1.6-1.7%) and NIM improvement of 10-20bps over 2-3 quarters. Key risks include potential impact from geopolitical tensions (war) on the MFI portfolio and elevated operating expenses due to non-recurring items.
Promises0 met · 1 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
Geopolitical risk from war impact on MFI
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Gross Advances
₹1.54 lakh cr
+13% YoY
Healthy growth driven by secured and wholesale segments; MFI book grew 8% QoQ.
CASA Ratio
29.3%
+200bps QoQ
Improved sequentially due to strong current account growth; retail deposits now 74% of total.
Gross NPA
3.3%
flat QoQ
Stable; net NPA improved to 1.0% with PCR at 85% including technical write-offs.
Collection Efficiency (MFI, ex-NPA)
99.3%
+110bps QoQ
Improved from 98.2% in Q3; March month at 98.6% due to holiday impact.
What Changed vs Last Quarter
NEW
ROA target of 1.6-1.8% by Q4 FY27
Management reiterated guidance for return on assets to reach 1.6-1.8% by exit of FY27, driven by credit cost improvement, higher other income, and operating leverage.
NEW
NIM improvement of 10-20bps over next 2-3 quarters
Expect further margin expansion from current 6.2% as cost of funds benefits from term deposit repricing continue.
NEW
PSLC cost reduction by 50% in FY27
Priority sector lending certificate costs expected to halve from FY26 levels, with near-zero cost targeted in subsequent years.
UPDATED
Credit cost target of 1.6-1.7% by FY27 exit
Aimed at reducing credit cost from current 2% level, supported by improving MFI portfolio and stable asset quality.
DROPPED
Advances and deposit growth of 15-17% over 2-3 years
Medium-term guidance for loan and deposit growth of 15-17% CAGR, with deposit growth expected to outpace advances.
DROPPED
NIM improvement from current levels
Management expects NIM to improve due to cost of funds decline (35-50bps benefit), partially offset by repo rate cut impact of ~11bps.
NEW RISK
Geopolitical risk from war impact on MFI
Management flagged potential adverse effects from ongoing war on fuel prices, supply chains, and rural economy, which could affect MFI collections.
NEW RISK
ECL transition impact on capital
Transition to expected credit loss norms may require ₹1,250 crore additional provisions, impacting CET1 by 16-17bps annually over 5 years.
NEW RISK
Elevated operating expenses
Q4 opex rose 10% QoQ due to non-recurring items (PSLC cost, IT expenses); management expects normalization but cost control remains a focus.
NEW RISK
Intense deposit competition
Management noted rising deposit rates in March; ability to grow granular retail deposits without margin pressure is a key challenge.
RISK GONE
Housing loan asset quality deterioration
Housing loan NPAs have been rising; management cited legacy underwriting issues and is implementing process changes.
RISK GONE
West Bengal election disruption
West Bengal accounts for 42% of MFI book; upcoming elections could impact collections, though management claims no current effect.
RISK GONE
Labor code provision uncertainty
Additional ₹120 crore provision taken for gratuity; further impact possible as state rules are yet to be notified.
Fast read
Guidance and risk preview
Management reiterated guidance for return on assets to reach 1.6-1.8% by exit of FY27, driven by credit cost improvement, higher other income, and...
Management flagged potential adverse effects from ongoing war on fuel prices, supply chains, and rural economy, which could affect MFI collections.
View Risks →