Bandhan Bank Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Bandhan Bank Ltd filed with BSE on 05 May 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 Q4FY26 net profit of Rs 534 crores, up 68% YoY, with gross advances of about Rs 1.54 lakh crores and deposits of Rs 1.66 lakh crores. Management said NIMs improved sequentially to 6.2%, CASA ratio rose to 29.3%, and asset quality metrics strengthened with gross NPA at 3.3% and net NPA at 1.0%. Management also described elevated operating expenses this quarter due to non-recurring PSLC and technology costs, and reiterated its medium-term ROA guidance.
Numbers mentioned
Gross advances: close to INR 1.54 lakh crores (FY26)
p. 4
“At the end of FY26, our gross advances stood close to INR 1.54 lakh crores, delivering a healthy 13% YoY growth.”
Partha Pratim Sengupta, page 4 of the filed PDF · View the filing
Deposits: Rs 1.66 lakh crores (FY26)
p. 4
“Deposit balances scaled up to Rs 1.66 lakh crores, supported by strong traction in retail and CASA deposits, reflecting our strategy of strengthening the quality and sustainability of our liabilities.”
Partha Pratim Sengupta, page 4 of the filed PDF · View the filing
CASA ratio: 29% (Q4FY26)
p. 4
“CASA balances strengthened sequentially and now account for 29% of total deposits.”
Partha Pratim Sengupta, page 4 of the filed PDF · View the filing
Net interest margin: 6.2% (Q4FY26)
p. 5
“The quarter saw healthy margin expansion, with NIMs improving sequentially to 6.2% as funding costs softened.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Gross NPA: 3.3% (Q4FY26)
p. 5
“Credit costs continued their downward trajectory and asset quality metrics strengthened, with gross and net NPA at 3.3% and 1.0%, respectively, and provision coverage at 85% including technical write-offs.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Net total income: INR 3,566 crores (Q4FY26)
p. 5
“For Q4FY26, our net total income stood at INR 3,566 crores, while our operating profit was INR 1,441 crores.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Net profit: INR 534 crores (Q4FY26)
p. 5
“I am pleased to inform that the bank reported a PAT of INR 534 crores for the quarter, depicting a growth of 68% YoY.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Capital adequacy ratio: 18.0% (Q4FY26)
p. 5
“Our capital position remains robust. The capital adequacy ratio improved and stood at 18.0% and Tier 1 capital at 17.3%.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
Dividend: INR 1.50 per share (FY26)
p. 5
“Furthermore, I am pleased to inform you that the Board of Directors has recommended a dividend of INR 1.50 per share, subject to the approval of the shareholders at the forthcoming Annual General Meeting.”
Partha Pratim Sengupta, page 5 of the filed PDF · View the filing
NII: INR 2,796 crores (Q4FY26)
p. 7
“NII for the quarter stood at INR 2,796 crores, reflecting a 1.4% YoY growth and a 4% sequential increase.”
Rajeev Mantri, page 7 of the filed PDF · View the filing
Operating cost: INR 2,125 crores (Q4FY26)
p. 8
“Moving to expenses, the operating cost for the quarter came in at INR 2,125 crores, representing a 10% increase sequentially.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Credit cost: 2% (Q4FY26)
p. 7
“Credit cost moderated to 2% for the quarter compared to 3.3% in Q3FY26 and stood at 3% for the full year of FY26.”
Rajeev Mantri, page 7 of the filed PDF · View the filing
Return on assets: 1.1% (Q4FY26)
p. 8
“Return metrics for the quarter also strengthened, with return on assets for the quarter was at 1.1% and the return on equity was at 9%, reflecting improved operating efficiency underlying profitability.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Full year net profit: INR 1,224 crores (FY26)
p. 8
“Net profit for the full year FY26 was INR 1,224 crores, resulting in an annualized ROA of 0.6% and ROE of 5%.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Gross slippages: INR 1,028 crores (Q4FY26)
p. 7
“Gross slippages at the bank level declined sharply to INR 1,028 crores in Q4 compared to INR 1,314 crores in the previous quarter.”
Rajeev Mantri, page 7 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 — 1.6% to 1.7% · exit of FY27
stated conditionally by Rajeev Mantri
p. 11
“we will be working towards seeing how we can gradually keep on improving the ROA towards the guided level of between 1.6% to 1.7% ROA by the exit of FY27, give or take 10 basis points.”
Rajeev Mantri, page 11 of the filed PDF · View the filing
Credit cost — 1.6% to 1.7% · exit of FY27
stated conditionally by Rajeev Mantri
p. 16
“So, our guidance, we have mentioned was between 1.6% to 1.7% by the exit of FY27, which is by Q4FY27. And we will still endeavour to work towards that.”
Rajeev Mantri, page 16 of the filed PDF · View the filing
Loan growth — 14%-15% · FY27
stated conditionally by Partha Pratim Sengupta
p. 15
“So, our guidance remains the same here. We are particularly aiming a growth of around 14% - 15% in the credit.”
Partha Pratim Sengupta, page 15 of the filed PDF · View the filing
PSLC cost — almost 50% reduction · FY27
stated as an aspiration by Rajeev Mantri
p. 9
“we are expecting that the PSL cost would come down by almost 50% to what we have incurred in FY26. That is our aim this year.”
Rajeev Mantri, page 9 of the filed PDF · View the filing
Net interest margin — around 6% on total assets · exit of FY27
stated conditionally by Rajeev Mantri
p. 23
“The guidance as we had been mentioning is by the exit of FY27, we expect NIMs to be around 6% on total assets, which means on earning assets basis it will be around 6.5%.”
Rajeev Mantri, page 23 of the filed PDF · View the filing
NIM improvement — 10 to 20 basis points · next 2 to 3 quarters
stated conditionally by Rajeev Mantri
p. 14
“So, we do expect at least another 10 to 20 basis points of improvement over the next 2 to 3 quarters.”
Rajeev Mantri, page 14 of the filed PDF · View the filing
Secured book mix — 58% secured, 42% unsecured · exit of FY27
stated firmly by Partha Pratim Sengupta
p. 24
“So, first of all, we had a target of doing a secured-unsecured business of 58%-42%. So that's what our goal at FY27.”
Partha Pratim Sengupta, page 24 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 attributed CA growth to focus on the affluent current account segment and said there is no crystallized target percentage yet.
Answered by Partha Pratim Sengupta
Asked by Piran Engineer: What led to the strong average CA growth this quarter and is there a target CASA ratio?
p. 9
“So, we'll continue to improve. We have not yet crystallized the target to what percentage we'll come.”
Partha Pratim Sengupta, page 9 of the filed PDF · View the filing
Management said PSL costs are expected to fall by half this year and eventually neutralize, aided by revamped EEB credit processes.
Answered by Rajeev Mantri
Asked by Piran Engineer: How is the bank neutralizing its PSL shortfall?
p. 9
“So, what we have done is that we have revamped our entire credit process in our EEB segment to quality more portfolio in the PSL and also incremental focus on our direct agriculture loans.”
Rajeev Mantri, page 9 of the filed PDF · View the filing
Management quantified roughly INR 60 crores from PSLC costs and INR 50 crores from IT expenses as one-off items.
Answered by Rajeev Mantri
Asked by Zhixuan Gao: Can management quantify the one-off operating expense items?
p. 11
“So, during the quarter, we had roughly around INR 60 crores of increase vs. last quarter that came through because of the PSLC costs.”
Rajeev Mantri, page 11 of the filed PDF · View the filing
Management estimated a transition impact of about INR 1,250 crores spread over 5 years, translating to roughly 16-17 bps CRAR impact per year.
Answered by Rajeev Mantri
Asked by Jayant Kharote: What is the expected steady-state ECL impact and standard asset provisioning on unsecured book?
p. 12
“the transition that we expect is to be roughly around INR 1,250 crores, which as we are allowed to transition it or spread it over 5 years would translate to about INR 250 crores per year impact.”
Rajeev Mantri, page 12 of the filed PDF · View the filing
Management said government CASA deposits are around INR 6,000 crores and expects further cost of funds benefit and NIM improvement.
Answered by Suresh Chandran
Asked by Ankit Bihani: What proportion of deposits are government-related and how will margins trend?
p. 14
“So, our government deposits on the CASA side will be around INR 6, 000 crores out of the total deposits that we have CASA deposits that we have.”
Suresh Chandran, page 14 of the filed PDF · View the filing
Management said NPA sale via ARC remains an option but nothing has been crystallized and there are no immediate plans.
Answered by Partha Pratim Sengupta
Asked by Anand Dama: Is the bank done with NPA pool sales?
p. 16
“So, it is an option. See it is a part of the NPA management. Option is neither closed nor we are following up also.”
Partha Pratim Sengupta, page 16 of the filed PDF · View the filing
Management explained that advances growth was rear-ended in the quarter and repo rate cuts affected interest income, so the benefit will show in coming quarters.
Answered by Partha Pratim Sengupta
Asked by Nitin Aggarwal: Why is NII growth lagging advances growth despite margin expansion?
p. 17
“the advances have taken place mostly the incremental growth, 50% of the incremental yearly grown has taken place in the last quarter.”
Partha Pratim Sengupta, page 17 of the filed PDF · View the filing
Management said the approach will depend on profitability appetite during the year and that they will assess flexibility offered by the circular.
Answered by Rajeev Mantri
Asked by Jai Mundhra: Would the bank prefer to minimize the ECL shortfall or adjust it through reserves as allowed by the new circular?
p. 20
“I think this will also depend upon the profitability appetite that comes through during the year. Of course, wherever there's opportunity existing, we will try to shore up our provisions.”
Rajeev Mantri, page 20 of the filed PDF · View the filing
Management said there is currently no government-backed guarantee coverage for the EEB portfolio, though the option is being evaluated.
Answered by Rajeev Mantri
Asked by Jai Mundhra: Does the EEB portfolio have any government-guaranteed linkages like CGFMU that would reduce provisioning?
p. 21
“So, for EEB portfolio currently we do not have any government-backed guarantee, but we are evaluating in terms of how do we want to progress it from here.”
Rajeev Mantri, page 21 of the filed PDF · View the filing
Management said the shift to 56-58% secured mix would not materially impact NIM and any shortfall would be compensated by other income growth.
Answered by Partha Pratim Sengupta
Asked by Dev: Will increasing the secured book share reduce NIMs, similar to peer banks with lower NIMs?
p. 25
“The second part is that so 56% to 58% will not have much impact on the NIM.”
Partha Pratim Sengupta, page 25 of the filed PDF · View the filing
Risks flagged
Uncertain impact of the Middle East war on the economy and fuel prices
p. 16
“But yes, definitely, there are certain concerns like the impact of the middle east war. We don't know the impact. How will it come?”
Partha Pratim Sengupta, page 16 of the filed PDF · View the filing
Intense deposit competition and rising term deposit rates in the industry
p. 15
“I think the deposit competition is definitely intense, and we did see in the month of March itself, the deposit rates go up quite significantly being offered by the competition.”
Rajeev Mantri, page 15 of the filed PDF · View the filing
Possible external shocks or headwinds affecting slippage and ROA trajectory
p. 23
“But we are also wary as we mentioned of some of the external risks which are coming through, especially we don't know fully if the war-related impact will come through in what shape and form.”
Rajeev Mantri, page 23 of the filed PDF · View the filing
Industry-wide reversal where incremental credit growth now exceeds incremental deposit growth
p. 15
“But yes, a challenging factor is that the entire industry has now reversed. If you look at from November onwards, incremental credit growth is more than the incremental deposits growth.”
Partha Pratim Sengupta, page 15 of the filed PDF · View the filing
EEB segment pressure was an industry-wide phenomenon that raised credit costs during the year
p. 8
“Higher credit cost was on account of pressure on the EEB book – an industry-wide phenomenon, that we saw play out during the year.”
Rajeev Mantri, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.