Bandhan Bank Cuts Q4 FY27 ROA Guidance to 1.2-1.4% Citing External

$BANDHANBNK has revised its Return on Assets (ROA) guidance for Q4 FY27 downward to 1.2%–1.4% from the earlier target of 1.6%–1.8%. The revision is primarily attributed to external factors rather than internal operational challenges. Key headwinds include elevated funding costs, rising technology-related expenditures, geopolitical tensions in the Middle East, and uncertain monsoon patterns. The 40 basis point reduction comprises approximately 30 bps pressure on Net Interest Margins (NIMs) and 10 bps on operating expenses. Credit cost guidance remains unchanged at 1.6%–1.8%. Management stated that NIMs are expected to stay broadly stable around 6.2% due to persistent funding cost pressures. However, the bank expects ROA to improve through higher contribution from other income (10-20 bps) and marginal improvement in credit costs. While the medium-term strategic objective to achieve the original ROA guidance remains intact, the current external environment may delay its realization. The bank remains focused on navigating these challenges while maintaining asset quality and long-term profitability goals.