Bandhan Bank (BANDHANBNK) investor relations material

Executive summary

• Q4 FY26 saw strong growth in gross advances and deposits, with advances up 13% YoY to ₹1.54 lakh crore and deposits up 10% YoY to ₹1.66 lakh crore, supported by a diversified loan portfolio and increased digital adoption.

• Profit after tax rose 68% YoY to ₹534 crore, with sequential growth of 159%, and profitability metrics strengthened.

• Retail and CASA deposits grew robustly, now forming 74% of total deposits, with a conscious reduction in high-cost bulk deposits and enhanced liability granularity.

• Asset quality improved, capital adequacy remained robust at 18%, and the board recommended a dividend of ₹1.50 per share.

• Expanded branch network and digital adoption, with 98% of retail transactions digital and 93% of savings accounts opened digitally.

Financial highlights

• Gross advances reached ₹1,542.3 bn (INR 1.54 lakh crore), up 13% YoY; deposits at ₹1,663.4 bn (INR 1.66 lakh crore), up 10% YoY.

• Retail term deposits grew over 30% YoY; CASA ratio improved to 29.3%; retail deposits form 73.7% of total deposits.

• Q4 net interest income was ₹2,796 crore (+1.4% YoY); operating profit ₹1,441 crore; PAT ₹534 crore (+68% YoY).

• NIM improved to 6.2% in Q4; full-year NIM at 6.1%.

• Full-year net profit was ₹1,224 crore; ROA at 0.6% for FY26, 1.1% for Q4; ROE at 5% for FY26, 8.5% for Q4.

Outlook and guidance

• Targeting 14-15% credit growth and higher deposit growth for FY27, with continued focus on retail and CASA deposits.

• NIM expected to improve by 10-20 bps over the next 2-3 quarters; aiming for 6% NIM by FY27 exit.

• ROA guidance of 1.6-1.8% by Q4 FY27, with sequential improvements expected.

• Credit cost guidance maintained at 1.6-1.7% by FY27 exit.

• Management emphasized customer-centric, digital-led growth and risk-adjusted expansion.