BANDHANBNK

🏦 Company Snapshot

Bandhan Bank’s total advances stand at around ₹1.3 lakh crore, while deposits are about ₹1.5 lakh crore. The bank’s CASA ratio (current and savings account deposits) is roughly 27%, indicating a moderate share of low-cost funding. Its net profit in Q1 FY26 stood near ₹370 crore, which was lower than last year due to higher provisioning for bad loans. Net Interest Income (NII) was around ₹2,700 crore, reflecting some pressure on margins. Asset quality remains a key area of concern, with gross NPAs hovering near 4–5% and net NPAs around 1%. However, the bank still maintains a capital adequacy ratio close to 18–19%, providing a comfortable buffer for future growth. ⚙️ Strengths Bandhan’s greatest strength lies in its deep microfinance roots and rural penetration. It understands the bottom-of-the-pyramid customer segment better than most banks. The bank has started diversifying into retail loans, MSME, and housing finance, aiming to reduce its dependence on microcredit. It continues to grow its deposit base, has a strong brand presence in eastern India, and maintains a healthy capital structure with low leverage. Its new management is focusing on improving underwriting standards, expanding the retail loan book, and reducing concentration risk. ⚠️ Risks and Challenges The main challenge remains the high exposure to microfinance borrowers, who are vulnerable to economic disruptions, crop failures, or political interference in repayment cycles. Provisioning costs have risen sharply, impacting profits. The decline in CASA ratio and growing competition for deposits have led to an increase in funding costs. As the bank shifts toward a more diversified model, it faces challenges in building new risk systems, improving collections, and gaining deposit stability comparable to older private banks.