Bandhan Bank Ltd (BANDHANBNK) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management reaffirmed its medium-term RoA aspiration of 1.6-1.8%, with the current FY27 guidance of 1.2-1.4% remaining intact after achieving the lower end.
- The day-one capital impact from ECL norms is estimated at INR 2,200 crores, but management expects the final figure to be significantly lower due to improving asset quality.
- Stabilization of the EEB portfolio and a return to growth is expected, with management targeting 8-10% growth after arresting the degrowth trend this quarter.
Performance Overview
- Bandhan Bank reported substantial improvement in profitability and return ratios, with PAT growing 5.5x YoY, driven by stable margins and controlled credit costs.
- Deposit mobilization accelerated with 4.7% sequential growth, bringing the net Credit-Deposit ratio down to 89.5% from 92%, though CASA ratio moderated.
- The loan portfolio continues to diversify, with the secured book growing 18% YoY to constitute 57.3% of total advances, while the EEB portfolio has stabilized.
- The bank launched its credit card business with four variants, aiming to deepen customer relationships, enhance cross-selling, and attract new segments like Gen Z and affluent customers.
- Asset quality remained stable with healthy collection efficiency of 99.4% and a comfortable provision coverage ratio of 71.2% (74.3% including SR provisions).
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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Tone & Disclosure
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