Elevated MFI stress and slippages
EEB slippages increased to INR 752 crore in Q2, and SMA-0/1/2 pools expanded. Management expects elevated slippages in Q3, with uncertainty on recovery timing.
high · management_commentaryBandhan Bank Limited — Q2 FY25
Bandhan Bank reported a mixed Q2 FY25 with PAT of INR 937 crore (+30% YoY) and NIM of 7.4%, but asset quality weakened as gross NPA rose to 4.7% and credit costs hit 2%.
neutral
medium
Financial stats pending filing verification
Risk Intelligence
Material risks this quarter
Concise cards keep the risk register scannable while preserving evidence-level context in the underlying quarter data.
Risks
Margin compression from product mix shift
Shift towards secured assets (lower yield) could pressure NIMs. Management acknowledged potential yield stress in coming quarters.
medium · analyst_questionOver-leveraging in microfinance sector
Despite Bandhan's unique customer share of 60%, industry-wide over-leveraging and credit freeze risks could impact asset quality. RBI actions on MFI lenders may add systemic risk.
medium · analyst_questionCapital adequacy pressure
Tier 1 ratio (including H1 profits) at ~14% is adequate for now, but rapid secured book growth and elevated credit costs could necessitate capital raise if stress persists.
low · analyst_question