Bandhan Bank (BANDHANBNK) Q1 25/26 earnings summary

Executive summary

• Net profit for Q1 FY26 was ₹372 crore, up 17% sequentially but down 65% year-over-year; deposits grew 16% YoY to ₹1.55 lakh crore and gross advances rose 6% YoY to ₹1.34 lakh crore.

• Secured book share increased from 43% to over 52% YoY, with secured book growing 29% YoY; non-EV portfolio now 60% of advances, up from 51% a year ago.

• 98% of retail transactions are digital, with 92% of savings accounts opened digitally; digital initiatives in collections and deposit mobilization expanded.

• Strategic focus on deposit granularity, secured lending, digital transformation, and operational efficiency to drive future growth.

• Distribution network expanded to nearly 6,350 outlets, serving 31.4 million customers across 35 states and UTs.

Financial highlights

• Gross advances at ₹1.34 lakh crore (₹1,336.2 bn), up 6% YoY but down 2.5% QoQ; deposits at ₹1.55 lakh crore (₹1,546.7 bn), up 16% YoY and 2.3% QoQ.

• Net interest income for Q1 FY26 at ₹2,757 crore (₹27.6 bn), down 8% YoY and flat sequentially; net profit at ₹372 crore, down from ₹606 crore YoY but up from ₹318 crore QoQ.

• Non-interest income grew 33% YoY, driven by treasury gains and third-party product income.

• Operating profit was ₹1,668 crore, down 14% YoY but up 6% sequentially; operating expenses rose 14% YoY.

• CASA ratio at 27.1%, down 630 bps YoY; retail deposits form 68% of total deposits.

Outlook and guidance

• Management expects gradual recovery in the EV segment in H2 FY26 as regulatory and industry discipline stabilizes.

• FY26 overall loan growth targeted at 10%, with EV portfolio growth of 5–8% and non-EV segments expected to grow faster.

• Credit cost guidance maintained at 2.5% for FY26, with further improvement expected in H2.

• NIM expected to face further compression in Q2, with stabilization anticipated in H2 as cost of funds benefits materialize.

• Strong capital adequacy (CRAR 19.4%) supports future growth plans.