Bandhan Bank: Deposit mix is the key trigger

Bandhan Bank Limited (BANDHANBNK) reported Q2 FY27 loans and advances of ₹1,58,335 crore, up 13.1% YoY, while deposits rose 9.2% to ₹1,72,689 crore. **What happened?** Loan growth remained healthy, but the deposit mix changed. Retail deposits grew 11.9% YoY, while CASA deposits increased only 4.3%. The CASA ratio fell to 26.71% from 29.40% in Q1 FY27. **Why it matters:** For Bandhan Bank, improving the quality and cost of deposits is important for protecting margins. Faster loan growth without a comparable improvement in low-cost deposits can increase funding pressure. **My view:** The loan growth is encouraging, but I would focus more on the deposit franchise. If CASA stabilises while advances continue growing, the earnings outlook could become more constructive. **What I’m watching:** CASA ratio, deposit growth, NIM, collection efficiency and credit costs over the next two quarters. **Stance:** Positive on loan growth, but deposit quality is the key trigger. **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. **Suggested tags:** Equity Research + Fundamental Views + Stock In News