Bandhan Bank Ltd (BANDHANBNK) Q2FY26 Concall Summary - Sep-2025 Qtr
Performance Overview
- The bank's performance in Q2 FY26 was described as a "transitional phase" and fell below internal expectations, primarily due to the impact of a 75 basis point repo rate cut on margins and elevated stress in the Emerging Entrepreneurs Business (EEB) segment.
- Despite near-term pressures, the non-EEB portfolio demonstrated strong, broad-based growth, with the secured loan book growing 25% YoY, increasing its share of total advances to 55% from 47% a year ago.
- The bank is focused on strengthening its granular liability franchise, with retail deposits growing 16% YoY and now constituting 71% of the total deposit base, reducing reliance on bulk deposits.
- Asset quality remained a key focus, with stable headline NPA ratios but elevated slippages from the EEB segment. However, management noted early signs of improvement with a sequential decline in SMA-1 and SMA-2 balances in the EEB portfolio.
- Management expressed confidence in an improving second half, citing the eventual repricing of term deposits from Q4 onwards, renewed momentum in CASA, and disciplined cost management, which should support margin recovery and profitability.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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