BANDHANBNK

BUY ON DIPOS BEST TO INVEST NEAR DEMAND ZONE

Bandhan Bank is a private-sector bank that evolved from a microfinance-focused institution into a universal bank. The key story currently is diversification away from microfinance toward retail, housing and wholesale banking. The latest Q1 FY27 numbers show that this transition is progressing, but there are still asset-quality and margin-related concerns. 2. Fundamental Analysis Q1 FY27 — Key Numbers Parameter Q1 FY27 Advances ₹1,55,555 Cr Deposit ₹1,64,886 Cr PAT ₹502 Cr NII ₹2,921 Cr CASA Ratio 29% CRAR 18.2% GNPA 3.1% NNPA 0.9% The bank's advances grew 16.4% YoY, while PAT increased approximately 35% YoY to ₹502 crore. Provisions declined by more than 40% YoY, which was an important contributor to profit growth. Positive Factors 🟢 1. Strong loan growth Advances grew around 16% YoY. More importantly, the retail book excluding housing grew 45%, while wholesale banking grew 38%. 2. Profit recovery PAT increased 35% YoY to ₹502 crore. This indicates a significant improvement compared with the year-ago period. 3. Asset quality improving GNPA declined sequentially to 3.1%, while NNPA declined to 0.9%. That's encouraging, although the absolute GNPA level is still something investors need to monitor. 4. Lower provisions Loan-loss provisions were around ₹683 crore, down about 40% YoY.