Gross Advances
₹1.54 lakh cr
+13% YoY
Healthy growth driven by secured and wholesale segments; MFI book grew 8% QoQ.
BANDHANBANK
Financial Services
15 Apr 2026
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.
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.
Key Numbers
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.
Management Guidance
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.
Management guidance growthNIM 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.
Management guidance marginsCredit 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.
Management guidance marginsPSLC 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.
Management guidance otherKey Risks
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.
medium · management_commentaryECL 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.
medium · analyst_questionElevated 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.
low · data_observationIntense deposit competition
Management noted rising deposit rates in March; ability to grow granular retail deposits without margin pressure is a key challenge.
medium · management_commentaryNotable Quotes
This quarter marked an improvement across many key parameters reflecting strengthening fundamentals across our core businesses.
We have not yet crystallized the target to what percentage we come, but definitely our focus is that we will continue to improve.
The EV segment has not only stabilized but also delivered good sequential growth reinforcing our confidence in the portfolio.
Frequently Asked Questions
What was Bandhan Bank's revenue in Q4 FY26?
Bandhan Bank reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Bandhan Bank management give for FY27?
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. 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. 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. 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.
What are the key risks for Bandhan Bank in FY27?
Key risks include 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.; 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.; 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.; Intense deposit competition — Management noted rising deposit rates in March; ability to grow granular retail deposits without margin pressure is a key challenge..
Did Bandhan Bank meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Bandhan Bank Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.