Bandhan Bank Reports Slower Loan Growth Compared to Deposits in Q1 FY26

Kolkata-based

an Bank reported a slower pace of loan growth compared to its deposit growth for the quarter ending June 30, 2025, according to provisional figures released by the lender. The bank’s loans and advances grew by 6.4% year-on-year, reaching Rs 1.34 lakh crore, but saw a sequential decline of 2.5% from the previous quarter. In contrast, the bank’s deposit base exhibited stronger growth, rising 16.1% year-on-year to Rs 1.55 lakh crore, with a sequential increase of 2.3%. The retail deposit segment was a key driver, surging 33.6% year-on-year to Rs 63,658 crore. Bulk deposits also showed robust growth, climbing 19.6% year-on-year to Rs 49,147 crore. The bank’s Current Account Savings Account (CASA) ratio, however, declined to 27.06% in Q1 FY26, down from 31.37% in Q4 FY25 and 33.37% in Q1 FY25, indicating a shift in the deposit mix. On the liquidity front, Bandhan Bank maintained a strong Liquidity Coverage Ratio (LCR) of approximately 178.28% as of June 30, 2025, reflecting its ability to meet short-term obligations. The divergence between loan and deposit growth highlights the challenges faced by the lender in scaling its lending portfolio amid a competitive market, while its robust deposit growth underscores its ability to attract customer funds, particularly in the retail segment.