🏦 Bandhan Bank Q1: CASA Crashes, Loans Slide, But Profits Say “I’m Alive!”

At a Glance

Bandhan Bank’s Q1FY26 was a mixed thali: deposits are rising, but low-quality calories. CASA is doing a swan dive, loans are shrinking, but somehow net profit is up nearly 482% YoY. It’s not a turnaround. It’s a magic trick. 🧙♂️

1. 📢 Introduction with Hook

Bandhan Bank was once the poster child of financial inclusion. Now it’s starting to look like the poster child of financial delusion. CASA ratio collapsing to 27%, loans down QoQ, gross NPAs flat — but net profit up? Either there’s some genius cost control, or… we’re in denial.

The market cap is ₹28,000 Cr. The book value is ₹151. The stock trades at just 1.16x BV.

But is it undervalued, or is it underdelivering?

2. 🤔 WTF Do They Even Do?

• Born as an MFI (Microfinance Institution), Bandhan morphed into a universal bank in 2015.
• Specializes in lending to underbanked and unbanked customers — especially women in rural/semi-urban India.
• Focus areas:
  • 👩🌾 EEB (Emerging Entrepreneurs Business — basically microcredit)
  • 🧑💼 Non-EEB (Retail, Housing, etc.)
• Mix of high-yield small-ticket loans and traditional banking products.

In short, it’s an MFI in a bank’s costume — and the costume’s starting to tear.

3. 💰 Financials – The Numbers Don’t Lie (But They Might Cry)