Bandhan Bank reported robust financial performance for the quarter ended March 31, 2026, with a 68% year-on-year growth in net profit to INR 534 crores. The bank saw healthy margin expansion, with Net Interest Margins (NIMs) improving to 6.2%. The management highlighted improved asset quality and a strategic shift toward a more balanced, granular, and secured loan portfolio, reinforcing the bank’s resilience and sustainable growth trajectory for the upcoming fiscal year.
Financial Performance Highlights
Bandhan Bank demonstrated significant operational improvements in the final quarter of the fiscal year 2026. The bank recorded a net total income of INR 3,566 crores and an operating profit of INR 1,441 crores. Profit after tax (PAT) for the quarter rose sharply by 68% year-on-year, reaching INR 534 crores. The bank’s capital position remains robust, with a capital adequacy ratio of 18.0% and a Tier 1 capital ratio of 17.3%, providing sufficient headroom for future expansion.
Asset Growth and Portfolio Strategy
Gross advances reached INR 1.54 lakh crores, marking a healthy 13% year-on-year growth. The bank successfully balanced its portfolio, with secured lending now accounting for nearly 56% of total advances. Growth in non-EEB segments remained strong at 25% year-on-year, while the EEB segment showed signs of stabilization with an 8% sequential growth. The management aims for an advance growth target of 14% to 15% for the next fiscal year.
Deposit Mobilization and Liability Profile
Total deposits grew to INR 1.66 lakh crores, a 10% increase year-on-year. The bank actively focused on retail-led growth and granularity, resulting in retail deposits growing by 18% year-on-year. CASA balances increased to INR 48,752 crores, pushing the CASA ratio to 29.3%. In a strategic move to optimize funding costs, the bank moderated its reliance on high-cost bulk deposits, which now account for approximately 26% of total deposits.
Asset Quality Improvements
Asset quality metrics showed consistent improvement throughout the quarter. Gross NPAs remained stable at 3.3%, while net NPAs improved to 1.0%. Collection efficiency (excluding NPAs) reached 98.9% in March 2026. Management attributed this positive trend to better portfolio behavior and effective early-warning mechanisms. Credit costs for the quarter moderated to 2%, with an outlook to further improve towards 1.6%–1.7% by the end of FY27.
Source: BSE
