Bandhan Bank loans rise 13% but CASA falls

Bandhan Bank Limited

reported 13.1% year-on-year growth in loans and advances to ₹1,58,335 crore in Q2 FY27. Deposits grew 9.2% to ₹1,72,689 crore. The numbers show loan growth is improving, but the funding mix needs attention. :chatgpt-content-reference{index="1"} What happened Loans grew 1.8% sequentially from ₹1,55,555 crore in June. Deposits grew faster sequentially at 4.7%. Retail deposits increased 11.9% year on year to ₹1,25,471 crore, while retail term deposits rose 16.8% to ₹79,340 crore. :chatgpt-content-reference{index="2"} The concern CASA deposits stood at ₹46,131 crore, up only 4.3% year on year but down 4.8% from June. The CASA ratio therefore fell to 26.71% from 29.40% in Q1 FY27. Bulk deposits also increased 10% sequentially. :chatgpt-content-reference{index="3"} The positive Collection efficiency remained strong at 98.9%, unchanged from June. Collection efficiency in the EEB segment improved marginally to 98.6%. Liquidity coverage ratio was around 137.88%. :chatgpt-content-reference{index="4"} My view The 13% loan-growth number looks encouraging, but I would not ignore the CASA decline. Faster growth in term and bulk deposits can increase funding costs and put pressure on margins. The next result therefore matters more than the headline loan number. What I am watching CASA recovery, deposit growth, net interest margin and asset quality in Q2 FY27. Stance: Cautiously positive on loan growth, but neutral until the funding mix improves. Disclosure: I do not hold a position in Bandhan Bank Limited. Its not an investment advice.