Bandhan Bank (BANDHANBNK) investor relations material

Executive summary

• Achieved steady momentum in advances and deposits, with gross advances at ₹1,452.2 bn (up 10% YoY) and deposits at ₹1,567.2 bn (up 11.2% YoY), supported by digital transformation and expanded branch network to 1,831 branches and 4,536 banking units.

• Digital transformation advanced, with 98% of retail transactions and 89% of new savings accounts opened digitally, and upgrades to corporate internet banking and real-time transaction monitoring.

• Asset quality improved, with GNPA at 3.3% (down from 5.0% QoQ), NNPA at 1.0%, and PCR (including technical write-offs) at 84.3%.

• Net profit for Q3 FY26 was ₹206 crore, up 84% QoQ, with operating profit at ₹1,445 crore and robust capital adequacy (CRAR 17.8%, Tier-1 17%).

• Significant NPA sales to ARCs and provisions for new labor codes impacted financials.

Financial highlights

• Gross advances at ₹1,452.2 bn (up 10% YoY); non-EEB book grew 25.4% YoY; retail assets up 57% YoY; wholesale banking up 32% YoY.

• Deposits at ₹1,567.2 bn (up 11.2% YoY); retail term deposits up 36% YoY; CASA ratio at 27.3%.

• Net interest margin (NIM) at 5.9% for Q3; net interest income at ₹2,688 crore.

• Net profit for Q3 was ₹206 crore, up 89% sequentially; nine-month PAT at ₹689 crore.

• Operating profit for Q3 at ₹1,445 crore; total income for Q3 at ₹6,122 crore.

Outlook and guidance

• Credit cost guidance of 1.6%-1.7% overall and 2.5%-3% for EEB by FY 2027; improvement expected in coming quarters.

• Advances growth guidance of 15%-17% CAGR, with deposit growth to outpace advances over the next 2-3 years.

• Focus on operational excellence, digital onboarding, and workforce upskilling, with emphasis on retail deposit mobilization and digital customer journeys.

• Management expects to accelerate digital initiatives in Q4 to enhance customer experience and operational efficiency.

• Focus remains on building a more resilient and diversified bank for sustainable growth.