Bandhan Bank Limited — Q4 FY26
Bandhan Bank reported a strong Q4 FY26 with PAT of INR 534 crore, up 68% YoY, driven by margin expansion (NIM at 6.2%, up 30bps QoQ) and lower credit costs (2% vs 3.3% in Q3).
bullish
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.
79%Questions answered1Evaded / deflected12Questions audited
Partial answer
High priority
What led to strong average CAR growth this quarter?
Asked by Piran Engineer, CLSA
Management gave qualitative reasons but no specific driver or breakdown for the doubling.
no specific driver quantifiedattributed to broad focus
Read the exchange
Question
Just first question is what led to the strong average CAR growth, this quarter doubled?
Suresh Chandran (Head of Branch Banking)
We had focused on current account affluent segment where we could, you know, manage a good growth in the current account at the granular level month-on-month, which has resulted in the total growth which has happened throughout the year.
Answered
High priority
How are we neutralizing PSL shortfall and moving to selling PSLC?
Asked by Piran Engineer, CLSA
Management quantified PSLC cost and gave a clear timeline for reduction.
Read the exchange
Question
Secondly, how are we thinking about neutralizing our PSL shortfall, and go back to that era of selling PSLC rather than purchasing PSLC?
Rajeev Mantri (CFO)
This year the cost has been definitely quite high. In the Q4 also we have to incur a cost of around INR 60 crores. ... This year we are expecting that the cost would come to, I would say, almost 50% to what we have incurred last year.
Answered
Medium priority
What sort of EEB loans now classify for PSL and future changes?
Asked by Piran Engineer, CLSA
Management explained the process change and provided specific percentages.
Read the exchange
Question
Rajeev, what sort of EEB loans today do not classify for PSL and going forward they will classify? Like, what is the change?
Rajeev Mantri (CFO)
Currently what was there, the agriculture or the allied agriculture loan that we are giving it are not getting captured into our system. We have made that enable. ... a year ago, it was only 10% or 15% of the EEBs which were coming under the PSL, qualifying for PSL. Now it has already increased to 40%.
Answered
Medium priority
Details on vehicle finance business: customer, cross-sell, product mix.
Asked by Piran Engineer, CLSA
Management answered all sub-questions with specific numbers and segments.
Read the exchange
Question
Can you talk a bit about it? Firstly, who is our typical customer who comes to us? Secondly, how much of the cross-sell happens to own deposit customers versus open market? Is this entirely car loans or is it two-wheeler, CV, et cetera, also?
Hirak Joshi (Retail Head)
The vehicle loans includes two-wheeler as well as car loans. ... majorly it is a salaried segment. ... about 20% of our volume comes from our own customer. ... About INR 3,000 crore is Commercial Vehicles, about INR 1,700 crore is Construction Equipment, about INR 1,800 crore is Auto Loans, and about INR 900 crore is two-wheeler loans.
Answered
High priority
Quantify one-off factors in operating expenses.
Asked by Gao Zhixuan, Schonfeld
Management provided specific amounts and nature of one-off items.
Read the exchange
Question
On the operating expenses, you mentioned there are one-off factors. Do you mind quantifying those one-off factors and nature of it?
Rajeev Mantri (CFO)
During the quarter we had roughly around INR 60 crore of increase that came through because of the PSLC cost. Apart from that, we had an increase in the IT expenses also, which was also amounting to a similar level of around INR 60 crore.
Answered
High priority
Thoughts on FY 2027 ROA?
Asked by Gao Zhixuan, Schonfeld
Management reiterated the existing guidance with specific range.
Read the exchange
Question
Any thoughts on FY 2027 ROA?
Rajeev Mantri (CFO)
We will be working towards seeing how we can gradually keep on improving the ROA towards the guided level of between 1.6%-1.7% ROA by the exit of FY 2027, give or take 10 basis points.
Answered
Medium priority
Impact of elections on April collection trends?
Asked by Jayant Kharote, Axis Capital
Management gave a clear assessment with minor seasonal caveat.
Read the exchange
Question
Anything that we should, I mean, I think this time we didn't have any interruption, so to say, from collection? Fair to say this collection trends would have held up in through the events of April as well?
Partha Pratim Sengupta (MD & CEO)
till now there is no adverse effect on collection on account of, I would say either election or war. The collection efficiency, what Rajeev has stated, is still continuing, but definitely a few, I think one, two basis points it comes down during the month of April, but which is quite common for the rate.
Partial answer
High priority
RBI ECL impact on steady-state credit cost and standard asset provisioning.
Asked by Jayant Kharote, Axis Capital
Management gave transition impact but deferred flow impact pending circular review.
flow impact not yet computedawaiting final circular assessment
Read the exchange
Question
How would your steady-state credit costs look like? ... on your unsecured book, what is the standard asset provisioning that you currently do?
Rajeev Mantri (CFO)
Based on the earlier draft circular and December 2025 portfolio, the transition impact we expect is to be roughly around INR 1,250 crores, which as we are allowed to transition it or spread it over 5 years, would translate to about a INR 250 crores per year impact.
Answered
High priority
Proportion of government deposits and margin trajectory.
Asked by Ankit Biyani, Nomura
Management provided specific government deposit amount and quantified NIM improvement.
Read the exchange
Question
I wanted to know that what proportion of your deposits would be government-related. The second question is: How should one think of the margin trajectory from here on?
Suresh Chandran (Head of Branch Banking) and Rajeev Mantri (CFO)
Our government deposits on the CASA side would be around INR 6,000 crores out of the total deposits that we have, CASA deposits. ... we do expect at least another 10-20 basis points of improvement over the next 2-3 quarters.
Partial answer
High priority
Expected credit cost for FY 2027?
Asked by Anand Dama, Emkay Global
Management did not give a specific FY27 credit cost number, only reiterated existing guidance.
guidance unchangedno specific FY27 number given
Read the exchange
Question
This year should we expect a credit cost somewhere about 1.5%, 1.6%, now that the EEB stress obviously is easing out and I think the ECL impact will be largely taken through the balance sheet. Is that a fair assumption in terms of credit cost for FY 2027?
Partha Pratim Sengupta (MD & CEO)
We are keeping our guidance unchanged because if you look the last year's performance, so the credit costs have substantially improved, and we have ended up at 2% for the day.
Answered
High priority
Why NII growth lags advances growth despite margin expansion?
Asked by Nitin Aggarwal, Motilal Oswal Financial Services
Management provided multiple specific reasons for the lag.
Read the exchange
Question
Any reason why this growth is lacking the advances growth despite such margin expansion?
Partha Pratim Sengupta (MD & CEO) and Rajeev Mantri (CFO)
the advances have taken place mostly the incremental growth, 50% of the incremental yearly growth has taken place in the last quarter. ... this quarter had roughly two days less. ... the repo rate reduction that happened in December of 25 basis points, which had an 11 basis points impact on our book.
Evasive
High priority
ECL shortfall treatment: adjust through reserves or minimize?
Asked by Jai Mundhra, ICICI Securities
Management did not give a clear direction on how they will treat the shortfall.
no commitmentdepends on profitability
Read the exchange
Question
Given that now ECL provides that the transition can be adjusted through reserves, would you be, I mean, would you be... Let's say if you have buffer, you can still flow in the P&L and then you can adjust in the reserves, or you would still like to minimize that shortfall.
Rajeev Mantri (CFO)
I think it will also depend upon the profitability appetite that comes through during the year. Of course, wherever there is opportunity existing, we will try to shore up our provisions.