Bandhan Bank (BANDHANBNK) Q3 25/26 earnings summary

Executive summary

• Gross advances grew 10% year-over-year to ₹1.45 lakh crore, with underlying growth at 12% after adjusting for NPA sales; deposits increased 11% YoY to ₹1.57 lakh crore, with retail deposits up 17% and improved granularity.

• Asset quality improved: GNPA at 3.3% (down from 5.0% QoQ), NNPA at 1%, aided by significant NPA sales to ARCs and enhanced recoveries.

• Strategic shift towards a more balanced, secured loan portfolio (57% of advances), reducing microfinance concentration.

• Digital transformation advanced, with 98% of retail transactions and 89% of new savings accounts opened digitally; new repayment options and digital collection tools launched.

• Distribution network expanded to 1,831 branches and 4,536 banking units, serving 32.5 million customers.

Financial highlights

• Net interest income for Q3 FY26 was ₹2,688 crore, up 3.8% QoQ; NIM at 5.9%.

• Operating profit for Q3 FY26 was ₹1,445 crore, up 10% QoQ; PAT at ₹206 crore, up 84% QoQ.

• For 9M FY26, net profit was ₹689 crore; annualized ROA at 0.5%, ROE at 4%.

• Retail term deposits grew 36% YoY; CASA ratio at 27%, with retail mix (CASA + retail TD) at 72%.

• Credit costs moderated to 3.3% for the quarter; PCR (including technical write-offs) at 84.3%.

Outlook and guidance

• Credit cost guidance for FY27 exit at 1.6%-1.7% overall, 2.5%-3% for EEB; steady improvement expected in coming quarters.

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

• NIM expected to remain stable or improve, supported by lower cost of funds and improved deposit mix.

• Focus remains on further improving asset quality, accelerating CASA, and enhancing digital capabilities.

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