India · Delayed Price · Currency is INR Bandhan Bank Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 delivered strong advances and deposit growth, improved margins, and asset quality, with PAT up 68% YOY. Guidance remains for 14-15% credit growth, NIM improvement, and ROA of 1.6-1.8% by FY27 exit, despite external risks and regulatory changes.
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Advances and deposits grew 10% and 11% year-over-year, with improved asset quality and a strategic shift toward secured lending. NIM rose to 5.9%, GNPA dropped to 3.3%, and credit costs moderated. Digital initiatives and branch expansion supported growth, while robust capital adequacy provides headroom for future expansion.
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Q2 FY2026 saw muted performance due to margin pressure and EEB stress, but strong deposit growth, improved asset quality, and a shift toward secured lending support a positive outlook. Margin and credit cost improvements are expected from Q4 as deposit repricing and risk management measures take effect.
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Q1 FY26 saw muted loan growth due to EV segment headwinds, but non-EV portfolios grew robustly and deposit growth outpaced advances. Asset quality improved sequentially, and cost of funds declined, though NIM compressed; management expects gradual recovery and stable credit costs in H2.
Fiscal Year 2025
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Full-year results showed strong profit and operating growth despite microfinance sector stress, with improved asset quality, robust capital ratios, and a growing secured loan mix. Strategic investments in technology and digital banking, along with regulatory support, position the bank for sustainable growth and improved profitability over the next few years.
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Gross advances grew 14% and deposits 20% year-on-year, with a strong shift toward secured assets and a focus on moderating credit costs amid MFI stress. NIM moderated to 6.9% in Q3, and ROA remains healthy at 1.8%.
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Q2 FY25 saw strong advances and deposit growth, robust profitability, and continued focus on secured lending and digital transformation. Asset quality saw marginal deterioration due to microfinance stress, but credit costs and margins remained within guidance.
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Q1 FY25 saw robust YoY growth in advances (22%) and deposits (23%), with net profit up 47% and NIM at 7.6%. Asset quality improved, though risk weights for EEB loans were raised, impacting capital ratios. Guidance for strong growth and stable margins continues.