Bandhan Bank Q2 loans grow 13.1%, deposits lag at 9.2%

Bandhan Bank Limited (BANDHANBNK) reported Q2 FY27 loans and advances of ₹1,58,335 crore, up 13.1% year-on-year. Total deposits grew slower, up 9.2% to ₹1,72,689 crore. On a quarterly basis, loans grew 1.8% and deposits grew 4.7%. Collection efficiency stayed at 98.9% pan-bank, excluding NPAs. Liquidity Coverage Ratio came in around 137.9%. Retail term deposits rose 16.8% year on year to ₹79,340 crore. Bulk deposits grew just 2.8% to ₹47,218 crore. These are provisional, unaudited figures, subject to board and auditor review. Loans growing faster than deposits is the number I'd flag first. A bank needs deposits to fund loan growth. When loans outpace deposits for a stretch, the bank either draws down its liquidity buffer or has to pay up for deposits to keep funding loan growth at the same pace. The LCR at 137.9% says there's room right now, but that gap is worth watching if it continues. The deposit mix shift is the other thing worth sitting with. Retail term deposits grew 16.8%, bulk deposits barely moved at 2.8%. That's actually a good sign on its own, retail deposits are usually stickier and cheaper than bulk deposits, so the bank is funding growth with a better quality deposit base, even if the total deposit growth rate looks modest next to loan growth. My stance: loan growth outpacing deposit growth is a gap worth tracking, not a red flag yet given the liquidity buffer. Watching the quarterly results, due in the coming weeks, for the audited numbers and management's own comment on this gap. I do not hold Bandhan Bank Limited at the time of writing.