Bandhan Bank is undergoing a business transformation

Bandhan Bank is undergoing a business transformation from its microfinance-heavy legacy toward a more diversified retail, MSME and secured-lending franchise. Q1 FY27 PAT rose 35% YoY to ₹502 crore, while gross advances grew 16.4% YoY to ₹1.56 lakh crore. NIM stood at 6.2%, supported by improving asset quality. Latest News: The key positive is continued improvement in asset quality and loan growth. However, management reduced FY27 exit RoA guidance to 1.2–1.4% from 1.6–1.8%, citing higher funding and technology costs, triggering a sharp post-results sell-off. Corporate Action/Outlook: Recent investor meetings indicate management is focused on diversification, profitability and strengthening the deposit franchise. The turnaround offers significant upside if RoA and margins recover, but funding costs, microfinance stress and the lower RoA guidance remain key risks.