Bandhan Bank (BANDHANBNK) investor relations material

Executive summary

• Q1 FY27 demonstrated resilience with 16.4% YoY growth in gross advances to ₹1,555.6 crore and 6.6% YoY growth in deposits to ₹1,648.9 crore, alongside improved asset quality and robust digital adoption, with 98% of retail transactions digital.

• Net profit rose 35% YoY to ₹502 crore, driven by higher net interest income and lower provisions, despite a sequential decline in operating profit.

• Strategic focus on diversification, secured lending, and reducing high-cost bulk deposits enhanced stability.

• Asset quality improved with GNPA at 3.1% and NNPA at 0.9%, both lower YoY and sequentially.

• External factors such as geopolitical tensions, unpredictable monsoon, and rising tech costs are being closely monitored.

Financial highlights

• Net interest income for Q1 FY27 was ₹2,921 crore, up 5.9% YoY; total revenue at ₹3,524 crore, up 1.2% YoY.

• Operating profit stood at ₹1,358 crore; profit after tax at ₹502 crore, up 35% YoY.

• Retail deposits grew over 15% YoY, forming 74% of total deposits; CASA ratio improved to 29.4%.

• Return on assets at 1.0%, return on equity at 7.7%.

• Cost-to-income ratio at 61.5%; OPEX to asset ratio at 4.3%.

Outlook and guidance

• ROA guidance revised to 1.0%-1.4% for exit Q4 FY27 due to external headwinds, mainly energy crisis and tech costs.

• Medium-term aspiration for 1.6%-1.8% ROA remains, but timeline may extend beyond FY27.

• Credit cost guidance maintained at 1.6%-1.8%.

• Focus on portfolio diversification with higher secured asset mix (56.8% secured advances) and digital transformation.

• Growth strategy targets 14% overall credit growth for FY27, with 5%-10% for EEB and 20%+ for non-EEB.