Bandhan Bank Limited — Q1 FY26
Bandhan Bank's Q1 FY26 results reflect continued stress in the microfinance (EV) segment, with total advances declining 2.5% QoQ due to a 7% contraction in the EV book.
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Financial stats pending filing verification
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Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
75%Questions answered1Evaded / deflected12Questions audited
Partial answer
High priority
Why disbursements down due to guardrails and rejection rates?
Asked by Kunal Shah, Citigroup Global Markets Inc.
Management gave qualitative reasons but did not quantify the impact of guardrails vs seasonality.
no specific rejection rate givenattributed to seasonality without quantification
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Question
So firstly, with respect to disbursements, maybe you have almost, like, 10,000 odd crores, which is down. If you can highlight in terms of how much is on account of the implementation of the AdRail two point o and how the rejection rates have moved and any particular geographical trends...
Vishal Wadhwa, Head - Emerging Entrepreneurs Business
First quarter, every year, there's a seasonality which gets the big bubble down. ... So 16 to 18% of our rejections are also coming in where there has been an overall industry default. ... And if you spoke about the geography, for us, because we are more recent in competitors now...
Partial answer
High priority
Why vintage NPA pools still showing 4% slippage after 12 months?
Asked by Kunal Shah, Citigroup Global Markets Inc.
Management attributed to industry issues but did not explain why recent vintages still show 4%.
no specific explanation for 4% slippagedeferred to future improvement
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Question
So when we look at it, like, even, say, disbursements of q one f y twenty five and q two f y twenty five that's rising compared to what we have disclosed maybe over a period that's now crossing almost, like, four odd percent. ... is that, like, this is, like, the general nature wherein we will keep seeing, like, 5% of NPS even from the recently written pools?
Vishal Wadhwa, Head - Emerging Entrepreneurs Business
On the part of your vintage analysis, if you see slide '21, we beat that 5.2 quarter four FY '24. ... I think this will keep on coming down because our recent book which is showing is coming out to be much better... I foresee that this will somehow will be in the range of 3% and not at the range of four and a half items in time to go.
Answered
High priority
Why has SMA 0 increased due to holiday billing?
Asked by Anand Dama, Emkay Global Financial Services Ltd
Management clearly explained the holiday billing change and confirmed SMA 1 and 2 stable.
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Question
Sir, first question is on your s m a zero, where I think you said that you started billing on the holidays and that's the reason the SMA portfolio has gone up. Can you explain like how is that happening and what you invest in practice?
Vishal Wadhwa, Head - Emerging Entrepreneurs Business
In terms of our estimate going higher, this number is primarily happened regarding the right our speaking and he was speaking on the holidays on demand, which was a requirement. ... If you see SME one and two, largely they have been stable.
Answered
High priority
When will 5% one-month-plus-three NPL unwind to zero?
Asked by Anand Dama, Emkay Global Financial Services Ltd
Management gave a clear timeline of two to three quarters for reduction.
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Question
Number two question is that when do you see your 5% of the one month plus three postponed online, whether it could take another about six months for that postponed online. So then ultimately, theoretically, it has to go down to zero. Right? So when that unwinding will happen.
Partha Pratim Sengupta, MD & CEO
You see that 5% one month plus five is hardly any number. It's 2% today... So one month plus three... that is 5%. Now over the period of, I believe, next two quarters, these numbers will come down to sub two sub three number because now we are restricted the value from April.
Partial answer
Medium priority
Why did retail and housing NPA increase QoQ?
Asked by Anand Dama, Emkay Global Financial Services Ltd
Management cited old unsecured book but did not explain housing NPA rise specifically.
no specific explanation for housing NPA increaseattributed to old unsecured book without quantification
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Question
Sir, and even in your retail portfolio, there is some increase in the NPS that we have seen on a quarter on quarter basis. ... Your housing also, we have seen the NPS moving up from 7,200,000.0 in March 25 to about 8.1. So what explains the increase in the housing and the retail portfolio NPS?
Rajeev Mantri, CFO
On the retail portfolio, then the old book, which is like mostly the unsecured side, that is showing little test... So this is only the good which is beyond '22 and beyond. It's a card book. Right?
Answered
Medium priority
Is SMA 0 risk of rolling forward given low-income borrowers?
Asked by Mahrukh Adajania, Nuvama
Management confirmed SMA 0 is recoverable and does not roll forward, citing stable SMA 1 and 2.
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Question
So given that, you know, these are very low income groups, there is a lot of certainty that it does not roll forward. Is that the right way to put it? Because they are low income. Right?
Partha Pratim Sengupta, MD & CEO
EV segment, you have data proof that your SME one and two remains stable for us. While SME zero got slightly elevated in the month, same month itself is getting recovered. So collection you can you can see. So these are these are basically the holiday impact.
Answered
High priority
When will MFI disbursements scale up given industry discipline?
Asked by Mahrukh Adajania, Nuvama
Management gave a clear timeline (Q3 onwards) and growth rate (10-15%).
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Question
So so then when do you see your disposals scaling up? I know that your growth will be slower than other segments, but still.
Partha Pratim Sengupta, MD & CEO
So I I think it will still take a quarter more for everybody to stabilize this gathering... So my guess is that maybe one this quarter more is more time frame for us to be more cautious and then quarter three onwards, the dispersal will step up. ... It will be in the region of 1015% growth from public loan.
Answered
Medium priority
Clarify holiday collection mechanics and SMA 0 impact.
Asked by Piran Engineer, CLSA
Management clearly explained the change in demand raising and its impact on SMA 0.
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Question
My question was, let's let's say, three months in a quarter, 12. Okay. Let's speak it simple. The borrower pays every Monday. Now on one Monday, it was a holiday, so you all used to collect only 11 installments. Is my understanding correct?
Rajeev Mantri, CFO
Correct. ... we were not raising demand. So, obviously, demand rate is 11. We were collecting 11. Now we are raising 12 demand, and we are collecting either in advance a week before or if on that particular day, we are not able to collect. We have to go to following week to collect, and that's why that zero to six come in into play.
Evasive
High priority
What is the trajectory for NIM?
Asked by Piran Engineer, CLSA
Management listed factors affecting NIM but declined to provide a specific trajectory.
no specific NIM guidance givenlisted multiple factors without quantification
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Question
One more very quick question. It'll take thirty seconds. Just what's your trajectory on NIM if you can guide us?
Partha Pratim Sengupta, MD & CEO
So we will get more urgent as we know that we have just passed 25 basis points and now this quarter we are passing another 25 basis points. ... So four factors two things about, you know, like I said, the one is clearly the report effect. ... we don't have a specific guidance, but I think these four factors what needs to be monitored.
Partial answer
High priority
Will NIM compress further in H2 despite FD repricing?
Asked by Harsh Wardhan Modi, JP Morgan
Management acknowledged further compression but gave only qualitative stabilization outlook.
no quantitative guidance on NIM stabilization level
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Question
So second quarter, definitely, margin goes down, if I understand you correctly. Does that continue in third and fourth quarter as well, sequentially?
Rajeev Mantri, CFO
I think you're right. We should be able to see, I think, some bit of a compression further in the next quarter. However, we should be able to see some level of stabilization in the second half of this year because of the offset that we expect, especially in the slippage that should start trying to improve.
Answered
High priority
Has credit cost guidance changed for H1 vs H2?
Asked by Jai Mundhra, ICICI Securities
Management reaffirmed the 2.5% credit cost guidance and unchanged trajectory.
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Question
So, is there anything changing your thought process wherein you had said that first half will have relatively higher credit cost, and then it should start start towards normalization there going into the second half. Is there anything changes there?
Partha Pratim Sengupta, MD & CEO
Overall credit cost of 2.5%, that's what the guidance we have given. We will try to maintain that. Actually, till now, that is our aim. We have not changed the time.
Answered
Medium priority
Why NII flat QoQ despite margin decline and loan book decline?
Asked by Ankit Bihani, Nomura Financial Advisory and Securities
Management explained the offset from lower cost of funds and lower slippages.
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Question
I just wanted to understand that while the margins have declined 30 bps q o q, loan book has declined at around about two and a half percent q o q. What explains the net interest income being flat on a q o q basis?
Partha Pratim Sengupta, MD & CEO
I think as I mentioned earlier, we actually have some improvement in the cost of funds. So our actions relating to the reduction in the savings account rates have led to almost 19 basis points reduction in the cost of deposits. ... The second thing is also, sequentially, we feel the shipping has come down marginally from roughly 1,700 odd crores to about 1,540 crores.