Bandhan Bank Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Bandhan Bank Ltd filed with BSE on 27 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Bandhan Bank reported Q1FY27 gross advances of INR 1.56 lakh crores (up 16% YoY) and deposits of INR 1.65 lakh crores, with net interest margin stable at 6.2% and net profit of INR 502 crores, up 35% YoY. Management revised its ROA aspiration for exit Q4FY27 down to a range of 1.2% to 1.4% from the earlier 1.6% to 1.8%, citing elevated funding costs, rising technology costs linked to the Middle East conflict, and an uncertain monsoon. Asset quality metrics improved with gross NPA at 3.1% and net NPA at 0.9%, while credit cost moderated to 1.8% from 2.0% in the prior quarter.
Numbers mentioned
Gross advances: INR 1.56 lakh crores (Q1FY27)
p. 4
“Gross advances stood at INR 1.56 lakh crores, registering a healthy 16% YoY growth, while deposits reached INR 1.65 lakh crores.”
Partha Pratim Sengupta, page 4 of the filed PDF · View the filing
Deposits: INR 1.65 lakh crores (Q1FY27)
p. 4
“Gross advances stood at INR 1.56 lakh crores, registering a healthy 16% YoY growth, while deposits reached INR 1.65 lakh crores.”
Partha Pratim Sengupta, page 4 of the filed PDF · View the filing
CASA ratio: 29.4% (Q1FY27)
p. 4
“CASA ratio improved sequentially to 29.4%, taking the share of retail deposits, including the CASA and retail term deposits to 74% of the overall deposits, further enhancing the stability of our funding profile.”
Partha Pratim Sengupta, page 4 of the filed PDF · View the filing
Net interest margin: 6.2% (Q1FY27)
p. 4
“margins remained stable at 6.2%”
Partha Pratim Sengupta, page 4 of the filed PDF · View the filing
Gross NPA: 3.1% (Q1FY27)
p. 5
“Gross NPA at 3.1%, net NPA at 0.9% and provision coverage at 86%, including the technical write-offs.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Net NPA: 0.9% (Q1FY27)
p. 5
“Gross NPA at 3.1%, net NPA at 0.9% and provision coverage at 86%, including the technical write-offs.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Net total income: INR 3,524 crores (Q1FY27)
p. 5
“Net total income for Q1FY27 stood at INR 3,524 crores and operating profit at INR 1,358 crores.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Operating profit: INR 1,358 crores (Q1FY27)
p. 5
“Net total income for Q1FY27 stood at INR 3,524 crores and operating profit at INR 1,358 crores.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Profit after tax: INR 502 crores (Q1FY27)
p. 5
“Profit after tax came in at INR 502 crores, representing a strong YoY growth of 35%.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Capital adequacy ratio: 18.2% (Q1FY27)
p. 5
“Capital adequacy ratio, including profits improved further to 18.2% with Tier 1 capital at 17.5%, providing significant capacity to support future business growth while maintaining a prudent capital buffer.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
EEB portfolio: INR 52,641 crores (Q1FY27)
p. 6
“The EEB portfolio stood at INR 52,641 crores, while the book witnessed the customary seasonal moderation typically seen in the first quarter, the extent of the decline was significantly lower than what we have experienced in the most previous years.”
Rajeev Mantri, page 6 of the filed PDF · View the filing
Non-EEB portfolio growth: 27% YoY (Q1FY27)
p. 6
“The non-EEB portfolio grew by 27% YoY and now contributes 2/3 of the overall loan book, underscoring the transformation of our business mix over the last few years.”
Rajeev Mantri, page 6 of the filed PDF · View the filing
Retail assets growth: 45% YoY (Q1FY27)
p. 6
“Retail assets recorded 45% YoY expansion, led by products such as commercial vehicles, construction equipment, auto loans and gold loans.”
Rajeev Mantri, page 6 of the filed PDF · View the filing
Wholesale banking growth: 38% YoY (Q1FY27)
p. 6
“Wholesale Banking also maintained strong momentum, growing 38% YoY, supported by deeper customer relationships and disciplined portfolio expansion.”
Rajeev Mantri, page 6 of the filed PDF · View the filing
CASA balances: INR 48,479 crores (Q1FY27)
p. 7
“Within this, CASA balances rose to INR 48,479 crores, delivering a healthy 16% YoY growth, and this growth was broad-based across both savings and current accounts, resulting in a sequential improvement in the CASA ratio to 29.4%.”
Rajeev Mantri, page 7 of the filed PDF · View the filing
Collection efficiency ex-NPA: 98.9% (June 2026)
p. 7
“At an overall bank level, the collection efficiency, excluding NPAs, remained healthy at 98.9% in June 2026.”
Rajeev Mantri, page 7 of the filed PDF · View the filing
Gross slippages: INR 1,079 crores (Q1FY27)
p. 7
“The gross slippages for the quarter stood at INR 1,079 crores, broadly stable compared to INR 1,028 crores in the previous quarter.”
Rajeev Mantri, page 7 of the filed PDF · View the filing
0 to 90 DPD pool in EEB: 3.5% (Q1FY27)
p. 7
“On early delinquency indicators, the 0 to 90 DPD pool in the EEB segment increased to 3.5% from 3.1% in the previous quarter.”
Rajeev Mantri, page 7 of the filed PDF · View the filing
Net interest income: INR 2,921 crores (Q1FY27)
p. 8
“The NII for Q1FY27 stood at INR 2,921 crores, registering a growth of 6% YoY and 5% sequentially.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Operating expenses: INR 2,166 crores (Q1FY27)
p. 8
“On the cost front, the operating expenses for the quarter were INR 2,166 crores higher by 19% YoY.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Credit cost: 1.8% (Q1FY27)
p. 8
“Credit cost continued its downward trajectory and moderated to 1.8% in this quarter compared to 2.0% in the previous quarter, which is Q4FY26.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Credit cost of EEB portfolio: 3.3% (Q1FY27)
p. 8
“the credit cost of EEB portfolio during Q1FY27 came down to 3.3%, which is very close to the guidance that we have provided.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Return on assets: 1.0% (Q1FY27)
p. 8
“Return metrics also remained healthy with return on assets at 1.0% and return on equity at 7.7%.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Return on equity: 7.7% (Q1FY27)
p. 8
“Return metrics also remained healthy with return on assets at 1.0% and return on equity at 7.7%.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Return on assets — 1.2% to 1.4% · exit Q4FY27
stated conditionally by Partha Pratim Sengupta
p. 6
“Based on this visibility available, we believe an ROA in the range of 1.2% to 1.4% of the exit of Q4FY27 would be probable.”
Partha Pratim Sengupta, page 6 of the filed PDF · View the filing
Return on assets (original aspiration) — 1.6% to 1.8% · exit of Q4FY27
stated as an aspiration by Partha Pratim Sengupta
p. 5
“the journey towards our stated aspiration of delivering an ROA of 1.6% to 1.8% by exit of Q4FY27 has become more challenging than it appeared earlier.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
EEB book share of total loan book — 33% to 35%
stated firmly by Partha Pratim Sengupta
p. 10
“We'll go to one-third that is 33% to 35% of EEB book and 65% non-EEB book.”
Partha Pratim Sengupta, page 10 of the filed PDF · View the filing
EEB loan growth — 5% to 10% · FY27
stated conditionally by Rajeev Mantri
p. 15
“we were looking at between a 5% to 10% growth and non-EEB would be 20% plus.”
Rajeev Mantri, page 15 of the filed PDF · View the filing
Overall credit growth — 14% · FY27
stated firmly by Rajeev Mantri
p. 15
“what we had guided was for the full year FY27, we were looking at a 14% growth rate”
Rajeev Mantri, page 15 of the filed PDF · View the filing
Credit cost — 1.6% to 1.8%
stated firmly by Rajeev Mantri
p. 18
“And therefore, our credit cost guidance of 1.6% to 1.8%, that continues to remain. So we are not changing that.”
Rajeev Mantri, page 18 of the filed PDF · View the filing
Opex to assets ratio — 4.2%
stated as an aspiration by Rajeev Mantri
p. 20
“So actually, the guidance we have given is on opex to asset ratio of around 4.2%. Right now, it's recovering to 4.3%. We'll try and put in efforts to bring it down.”
Rajeev Mantri, page 20 of the filed PDF · View the filing
Cost to income ratio — beyond FY28
stated as an aspiration by Rajeev Mantri
p. 20
“we had guided that after 2 years of investments, which is beyond FY28, we should start to see further efficiencies to come through.”
Rajeev Mantri, page 20 of the filed PDF · View the filing
IT cost as % of opex — 8%
stated as an aspiration by Partha Pratim Sengupta
p. 16
“Given that we still have a lot of IT investment to make, we will try and remain within the range of 10%. But as it starts delivering value, we will slowly bring it down to 8%.”
Partha Pratim Sengupta, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the revision is due to external factors, particularly funding costs and technology costs, not internal or asset quality issues.
Answered by Partha Pratim Sengupta
Asked by Sameer Bhise: What conservatism is built into the revised ROA guidance, and is asset quality risk involved or purely funding cost pressure?
p. 9
“I have very clearly stated in my speech that the revise guidance on RoA is on account of the external factors and no internal factors, I would say, has any impact on revising the guidance.”
Partha Pratim Sengupta, page 9 of the filed PDF · View the filing
Management said NIM was maintained at 6.20% this quarter but could be moderately affected by rising deposit costs going forward.
Answered by Partha Pratim Sengupta
Asked by Sameer Bhise: What is the outlook for NIM given cost pressures?
p. 10
“So this quarter also, despite challenges, we could maintain the NIM at 6.20%. But as I have told you that going forward, there may be some increase in the cost of the funds & cost of the deposits.”
Partha Pratim Sengupta, page 10 of the filed PDF · View the filing
Management said they hiked rates by 100 basis points in February 2026 but have not hiked since and have no further plans to hike.
Answered by Partha Pratim Sengupta
Asked by Piran Engineer: Has the bank hiked microfinance yields like competitors?
p. 11
“It was 100 basis points.”
Partha Pratim Sengupta, page 11 of the filed PDF · View the filing
Management attributed the slowdown to a cautious stance amid macro uncertainty and a revamp of the housing finance structure causing teething problems.
Answered by Partha Pratim Sengupta
Asked by Piran Engineer: Why did retail and mortgage growth slow this quarter?
p. 11
“In the housing segment, as you can see for that year, we have done a revamping, completely revamping of our structure. We have segregated the 3 verticals. So definitely, there have been some teething problems, which we were busy in addressing for that year.”
Partha Pratim Sengupta, page 11 of the filed PDF · View the filing
Management pointed to other income improvement of 10-20 basis points and continued marginal improvement in credit cost as the two key drivers.
Answered by Rajeev Mantri
Asked by Piran Engineer: Where will the ROA improvement from 1.1% to 1.4% come from if NIM and credit cost gains are limited?
p. 12
“I think two factors, Piran. One is we do expect further uptake in the other income to come through. So, we do expect 10 to 20 basis points improvement to come through other income.”
Rajeev Mantri, page 12 of the filed PDF · View the filing
Management attributed the rise to West Bengal election-related holidays and consecutive holiday days in April, not a fundamental deterioration, and expects collections to remain stable.
Answered by Partha Pratim Sengupta
Asked by Jai Mundhra: What caused the increase in SMA-0 and what is the near-term outlook?
p. 13
“There were two effects, I can say. One is definitely the election effect of West Bengal. This is one. And number two, the holidays. And consecutively, 3 business days were holidays.”
Partha Pratim Sengupta, page 13 of the filed PDF · View the filing
Management said roughly 30 basis points relates to NIM pressure and 10 basis points to opex pressure from rising tech costs.
Answered by Rajeev Mantri
Asked by Ankit Bihani: What explains the breakdown of the 40 bps ROA guidance cut?
p. 18
“the breakup of the 40 basis points is roughly around 30 basis points stretch that we see on NIMs and roughly around 10 basis points stretch we see on the opex.”
Rajeev Mantri, page 18 of the filed PDF · View the filing
Management said cost-to-income would likely remain at similar levels for another year before starting to taper from FY28.
Answered by Partha Pratim Sengupta
Asked by Digant Haria: Can cost-to-income ratio improve from current levels given secured book buildout and efficiency efforts?
p. 20
“At least for the next 1 year, probably it will be remain at the same level because till we reach a certain level of business. But yes, then it will come coming down. So I think we were expecting that it should taper down from the FY28.”
Partha Pratim Sengupta, page 20 of the filed PDF · View the filing
Management said the purpose is to build wallet share and generate other income such as fee and forex income, not just NII from advances.
Answered by Partha Pratim Sengupta
Asked by MB Mahesh: Why grow the lower-margin wholesale banking book when margins are under pressure?
p. 21
“So let me tell you the pressure is on the NII, I do admit. But our aim is to whatever to offset this loss in the interest compared to the other business through the other income.”
Partha Pratim Sengupta, page 21 of the filed PDF · View the filing
Management said implementation of a new RBI circular required system changes that disrupted sourcing from April to mid-May, with normal sourcing resuming afterward.
Answered by Hirak Joshi
Asked by Nitin Aggarwal: Why did gold loans decline this quarter despite industry growth?
p. 23
“As far as gold loan is concerned, we implemented the new circular of RBI, and we developed the system. As you know, the entire circular was 180-degree change.”
Hirak Joshi, page 23 of the filed PDF · View the filing
Management said there is no plan to curtail growth and the bank could grow up to 10% if conditions improve, while keeping the book at around 33% of total exposure.
Answered by Partha Pratim Sengupta
Asked by Nitin Aggarwal: Is there a conscious decision to reduce MFI mix further given the moderate growth guidance?
p. 24
“we have a bandwidth of around 5% to 10%. So the question is that we will grow. Definitely, if the situation improves, we may grow up to 10% also.”
Partha Pratim Sengupta, page 24 of the filed PDF · View the filing
Risks flagged
Geopolitical developments in the Middle East affecting energy costs and technology supply chains
p. 5
“Ongoing geopolitical developments, particularly in the Middle East, a less predictable monsoon pattern, elevated funding costs and rising technology-related costs are factors that warrant close monitoring.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Elevated funding costs despite no repo rate increase
p. 5
“Among these factors, the impact of higher funding costs despite no increase in the repo rate is already visible and has started flowing.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Rising technology costs due to supply chain constraints from the Middle East war
p. 5
“At the same time, technology-related expenditures have also risen due to supply chain constraints on account of the ongoing war in the Middle East.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Unpredictable monsoon pattern
p. 6
“Mainly the factors are due to the energy crisis because of the continuous Middle East war and also the unpredictable monsoon.”
Partha Pratim Sengupta, page 6 of the filed PDF · View the filing
Rising deposit rates from competition despite stable repo rate
p. 9
“we are finding that banks have started increasing the rates and the deposits, and we cannot also go away from the competition.”
Partha Pratim Sengupta, page 9 of the filed PDF · View the filing
Energy crisis disproportionately affecting the microfinance sector
p. 17
“the greatest impact is the energy crisis and which the sector which gets most affected through this energy crisis is definitely the microfin sector for the day.”
Partha Pratim Sengupta, page 17 of the filed PDF · View the filing
Durable system liquidity shortfall creating interest rate pressure
p. 17
“We all know the durable liquidity in the country, which is almost requiring INR 2.5 lakh crore or INR 2.5 trillion is just moving in the range of INR 1 trillion.”
Partha Pratim Sengupta, page 17 of the filed PDF · View the filing
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