Bandhan Bank: Deposit growth and asset quality in focus

Bandhan Bank: Deposit growth and asset quality in focus Bandhan Bank Limited (NSE: BANDHANBNK) is working to balance loan growth with deposit mobilisation and improve the quality of its lending portfolio. **Why it matters:** The bank's microfinance exposure makes collection efficiency and borrower repayment capacity important drivers of performance. Diversification into secured lending can reduce concentration risk, but deposit growth and funding costs remain critical. **My view:** Sustainable recovery depends on improving collections, controlling credit costs and strengthening the deposit franchise. Growth in advances is encouraging only when it translates into better profitability without weakening asset quality. **What to watch:** Gross and net NPAs, collection efficiency, credit costs, deposit growth, CASA ratio, net interest margin and the share of secured loans. **Stance:** A sustained improvement in asset quality and funding stability would strengthen the outlook. Quarterly execution and valuation remain important before forming a bullish view. Disclosure: I am a SEBI Registered Research Analyst. This content is for educational purposes and is not a recommendation to buy or sell any security.