Bandhan Bank (BANDHANBNK) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 showed broad-based progress in growth, deposit mobilization, portfolio diversification, asset quality and profitability; management described performance as balanced and steady.

• Advances reached ₹1,583.7bn, up 13.1% YoY, and deposits ₹1,726.9bn, up 9.2%; PAT was ₹622 crore, up 455.7% YoY from ₹112 crore.

• Strategic priorities included a higher secured lending mix, greater retail-deposit share, digital service adoption and stronger asset quality; the network covered 35 States and UTs.

Financial highlights

• Q2 NII was ₹2,960 crore, up 14.54% YoY; net total income was ₹3,665 crore, up 17%, and operating profit was ₹1,556 crore, up 18.8%.

• Q2 provisions and contingencies fell to ₹718 crore from ₹1,153 crore; PAT was ₹622 crore versus ₹112 crore in Q2 FY26.

• H1 FY27 NII was ₹5,881 crore, net total income ₹7,190 crore, operating profit ₹2,915 crore and PAT ₹1,123 crore, up 132% YoY; operating profit declined 2.1%.

• Processing fee income grew 30% YoY and third-party distribution income 26%; management expected the stronger fee run-rate to continue in H2.

Outlook and guidance

• FY27 loan growth target remains 14%; deposit growth is expected to exceed loan growth and improve in coming quarters.

• EEB growth target is 8%-10% in Q3-Q4, with disbursements tracking toward the target after recent declines were arrested.

• NIM outlook remains 6.1%-6.2%; Q3 is expected to be largely unaffected by repo-rate changes, with potential Q4 repricing tailwind subject to deposit costs.

• Q4 FY27 ROA guidance remains 1.2%-1.4%; medium-term aspiration is 1.6%-1.8%, with timing dependent on performance.

• Operating expense-to-assets guidance remains 4.2%; credit cost may moderate from 1.8% to 1.7%, and FY27 PSLC cost is estimated at ₹120 crore.