Bandhan Bank reported its Q3FY26 results, showcasing improvements across core business areas. Gross advances reached ₹1.45 lakh crores, a 10% YoY increase. Deposits grew faster than advances, reaching ₹1.57 lakh crores. The bank deliberately reduced high-cost bulk deposits to improve liability profile quality. NIM stood at 5.9%, and there were improvements in asset quality, with lower slippage.
Financial Performance
Bandhan Bank demonstrated underlying strengths in its Q3FY26 performance:
- Gross Advances: Stood at approximately ₹1.45 lakh crores, reflecting a 10% YoY growth.
- Deposits: Reached ₹1.57 lakh crores, outpacing advances growth.
- Retail Term Deposits: Grew by over 36% YoY.
- CASA: Constituted 27% of total deposits.
- Secured Book: Comprised 57% of overall advances.
- Net Interest Margin (NIM): Recorded at 5.9% for the quarter.
- Net Total Income: Stood at ₹3,379 crores.
- Operating Profit: Was ₹1,445 crores.
- Profit After Tax (PAT): Bank reported a ₹206 crores for the quarter.
Strategic Initiatives
Several key initiatives were undertaken to enhance products and services:
- Enhanced the Bandhan Corporate Internet Banking platform.
- Onboarded Razorpay as a payment gateway partner.
- Introduced real-time SMS acknowledgements for cash collections.
- Launched a real-time digital dashboard for Operations Executives.
- Introduced 18-month and 36-month tenure options in group loans.
Asset Quality
The bank executed the sale of NPAs and written-off accounts to ARCs during the quarter. They sold ₹3,707 crores of written-off portfolio, realized at approximately 9%. They also sold ₹3,165 crores of NPAs at around 18% valuation. Gross NPA ratio improved to 3.3%, and Net NPA declined to 1%. Credit cost for the quarter moderated to 3.3%.
Deposit Performance
Total deposits stood at ₹1.57 lakh crores, compared to ₹1.41 lakh crores a year ago, a growth of 11% YoY. Retail deposits grew by 17% YoY, and retail term deposits increased by 36% YoY. Bulk deposits declined, reducing their share to approximately 28% of total deposits. CASA deposits stood at ₹42,730 crores.
EEB Portfolio
The EEB book stood at ₹50,076 crores, showing an 11% YoY decline. However, normalized for the NPA sale, the portfolio would have grown 2% QoQ. A sale of ₹2,759 crores from the EEB book was sold to ARC in Q3.
Revised Labour Codes
An incremental provision of ₹120 crores was created towards gratuity due to the newly notified labour codes.
Source: BSE
