Bandhan Bank Limited — Q2 FY26
Bandhan Bank's Q2 FY26 results were below internal expectations, with PAT plunging 88% YoY to INR 112 crore due to margin compression and elevated credit costs.
bearish
high
Financial stats pending filing verification
Claim Ledger
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.
58%Questions answered2Evaded / deflected12Questions audited
Partial answer
High priority
Where will credit cost and SMA 0 settle? How to improve PPOP margin? Impact of Bihar debt waiver?
Asked by Mahrukh Adajania, Nuvama
Management gave a long-term credit cost guidance but did not specify when SMA 0 would settle or quantify Bihar election risk.
no specific timeline for SMA 0 settlingno quantification of Bihar impact
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Question
Where do you expect the full year and the two year credit costs to settle? ... where do you see the SMA 0 settling in the third quarter? ... How do you strengthen the PPOP margin? ... In the Bihar election manifestos ... debt waiver figures ... how much of that would you expect to rub off to MFI?
Partha Pratim Sengupta, Managing Director and CEO
We have a guidance for the next two, three years where we have said that we should come to around 2.5%. ... We are still maintaining our guidance that after two three years we will be putting it around 2.5.
Answered
Medium priority
How much did you cut MCLR by since April?
Asked by Mahrukh Adajania, Nuvama
Management provided a specific number (200 bps) directly answering the question.
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Question
How much did you cut your MCLR by, say, since April?
Rajeev Mantri, CFO
Roughly 200 basis points.
Evasive
High priority
Has industry or government stepped in to support MFI collections in Bihar?
Asked by Abhishek Murarka, HSBC Bank
Management avoided answering about industry or government support and instead highlighted their own better delinquency metrics.
did not address industry or government supportreframed to own portfolio performance
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Question
Has the INFIN stepped in, or have you or some of the large lenders made some representations or issued some guidelines so that your field agents can work without any hindrance?
Partha Pratim Sengupta, Managing Director and CEO
Bihar again I'm telling you that if you look at our portfolio, the delinquency trends are at a very acceptable level. ... We are a little bit comfortably placed than what the industry is doing for the day.
Answered
Medium priority
Which geographies are you comfortable lending in EEB?
Asked by Abhishek Murarka, HSBC Bank
Management explicitly named geographies where they are comfortable and where they are not.
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Question
Which geography have you been comfortable in lending? That is what I wanted to understand. Where has this disbursement?
Vishal Wadhwa, Executive VP
Definitely I consider the eastern part is doing reasonably well. West Bengal, Assam, Bihar. ... The places where we are really not able to go because the guardrails are Tamil Nadu and Karnataka because of the late entrance of ours.
Partial answer
Medium priority
Why did housing NPA move up sequentially despite strong growth?
Asked by Aravind Ravichandran, Sundaram Alternates
Management attributed the increase to ballooning recognition and affordable segment stress but did not quantify the holiday impact.
no specific quantification of holiday impact vs other factors
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Question
In housing category also, sequentially NPA has moved up ... Is it again like because of the holidays or is there something else in the play?
Rajeev Mantri, CFO
There had been some sort of ballooning related sort of NPA recognition which had happened sometime back ... The little bit of an increase that we see coming through the housing pertains to some of the underlying portfolio in the affordable segment.
Answered
High priority
Why is the >3 lender portfolio stable? Is it difficult to run down?
Asked by Aravind Ravichandran, Sundaram Alternates
Management provided specific current percentage and future trajectory, directly addressing the question.
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Question
Within the EEB portfolio, but then plus more than three lenders, like it has been actually stable for past few quarters. Is it like, you know, what is happening there? Are you finding it difficult to run down that portfolio?
Vishal Wadhwa, Executive VP
We put the guardrail down on April 2nd for FY 2026 ... It has come down to a 9.5%. ... Come March 2026, you will see this number of 9.5% going down to a 7%, 6% ... and below 5%, maybe quarter 1, FY 2027.
Partial answer
High priority
Is MFI customer penetration saturated? Where will growth come from?
Asked by Anish Rai, UBS
Management acknowledged stagnation but did not provide concrete growth drivers beyond waiting for industry recovery.
no specific growth levers beyond waiting for stabilization
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Question
Do you still believe there's an increasing penetration story there, or do you think the market there has sort of saturated now and it's all going to market share gains? ... How do you see that growth without that increase in customer accretion?
Vishal Wadhwa, Executive VP
You're right that we are stagnant in terms of the new borrower coming in month on month. ... Once the industry stabilizes and the leverage issue is completely licked off, we will try and get further new customers.
Partial answer
High priority
Why hasn't cost of funds improved despite CASA up and savings rate cuts? NIM outlook?
Asked by Param Subramanian, Investec
Management explained the lag effect but did not give a specific NIM forecast for the second half.
no specific NIM guidance for H2 FY26
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Question
Quarter on quarter, cost of funds is as in there is not much movement. Why is that the case? ... How to think about NIMs going into the second half and next year?
Partha Pratim Sengupta, Managing Director and CEO
The fixed deposits are yet to come. ... The moderation will take place as and when this gets renewed. ... Q4 actually the major impact will come.
Answered
Medium priority
Was the 200 bps MCLR cut due to RBI? Any further regulatory shocks?
Asked by Anand Dama, Emkay Global Financial Services
Management clearly denied RBI involvement and stated no further shocks expected.
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Question
This NCLR cut that we have done, 200 basis point, is that something to do with RBI telling us or is it basically ... any further shocks in terms of any PSL classification or anything that would come from RBI?
Partha Pratim Sengupta, Managing Director and CEO
It has got nothing to do with RBI. ... Nothing as such. We have supervisory.
Partial answer
High priority
Quantify MFI slippages and why they didn't decline like peers?
Asked by Hardik Shah, ICICI Securities
Management provided the slippage number but did not fully explain why their slippages did not decline like peers, citing base differences.
no direct comparison to peer declineattributed to base effect
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Question
If you can quantify the MFI slippages in this quarter. ... any qualitative reason why you know the situation did not pan out the way it should have been because other banks ... have seen 20%, 30%, 40% decline in slippages.
Rajeev Mantri, CFO
The slippages for the EEB ... was INR 1,118 crore. ... The gross slippage increased marginally from INR 1,089 - INR 1,118 during the quarter.
Partial answer
Medium priority
Why did wholesale banking GNPA rise?
Asked by Hardik Shah, ICICI Securities
Management cited denominator impact but did not provide absolute numbers to support the explanation.
attributed to denominator effect but did not quantify
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Question
Just wanted to check this wholesale banking. ABG book and erstwhile SEL book, what is the reason for the rise in GNPA there?
Vishal Wadhwa, Executive VP
The denominator impact is there. We have gone a little slow in terms of the growth in self ... Otherwise, the slippage pattern of ABG has been on the same similar numbers month on month.
Declined
High priority
What is the total SMA pool including non-EEB for ECL implementation?
Asked by Mahrukh Adajania, Nuvama
Management explicitly declined to provide the SMA pool figures, citing ongoing assessment.
refused to sharedeferred to later
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Question
What would be your overall SMA pool? Because that will determine the stage two provisions, right? ... What is the total SMA pool including non-EEB, like say for 0, 1, and 2?
Rajeev Mantri, CFO
We are assessing and evaluating. ... At this stage, that process is still on. ... We will not be able to have the details of that.