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% YoY, with improved asset quality and NIM at 5.9%. NPA sales and higher provisioning impacted profits, but credit costs and slippages are expected to improve, supported by a stronger secured loan mix and digital initiatives.
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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 profit rose 23% year-over-year, with strong growth in secured loans and retail deposits. Asset quality remained stable despite microfinance stress, and capital adequacy improved following regulatory changes. Strategic focus remains on secured lending, digital transformation, and operational efficiency.
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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 growth in advances and deposits, robust profitability, and stable margins despite elevated risks in the microfinance sector. Asset quality saw some deterioration, but credit costs and capital ratios remain within guidance. Leadership transition and digital investments support future growth.
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Q1 FY25 saw robust 22% YOY growth in advances and 23% in deposits, with net profit up 47% YOY. Asset quality improved, NIM held at 7.6%, and capital adequacy remains strong despite higher risk weights for EEB loans. Strategic focus is on secured asset growth and geographic diversification.