1. Opening Hook
When the RBI cut repo rates by 75 bps, Bandhan Bank didn’t just pass it on — it gift-wrapped it and delivered it with sweets for Diwali. The result? Margins melted faster than Rasgullas in Kolkata heat. Still, CEO Partha Sengupta swears it’s “short-term pain for long-term gain.”As the Bible says,“Let patience have her perfect work.”Investors might need exactly that as the microfinance phoenix tries to rise — again. Stick around, because Bandhan’s journey from MFI to mainstream bank is getting spicy.
2. At a Glance
- Gross Advances ₹1.4 lakh cr– Up 7% YoY; slow growth is the new discipline.
- Deposits ₹1.58 lakh cr– Up 11%; retail love still strong.
- CASA 28%– CFO praying for 30% by year-end.
- NIM 5.8% (vs 6.4%)– Repo cut hit harder than expected.
- PAT ₹112 cr– Down from ₹937 cr YoY; profit slipped through cracks.
- GNPA 5%, NNPA 1.4%– Stable, but still high for comfort.
- Credit Cost 3.4%– “Transitional phase,” says management (a.k.a. excuse for now).
3. Management’s Key Commentary
“Our performance was below internal expectations.”(Translation: We didn’t flunk, but it’s not on the fridge either.)
“Repo rate cuts impacted our margins, but benefits will flow from Q4.”(Translation: Q3 will test your faith, Q4 will test your patience.😏)
“Slippages remain elevated in the EEB segment.”(Translation: Collections are a daily soap — lots of drama, slow resolution.)
“Our secured portfolio is now 55% of advances.”(Translation: We’ve discovered collateral — and we’re not letting go.)
“CASA improved to 28% with retail deposits at 71%.”(Translation: Bulk deposits are passé; retail is the new romance.)
“This is a transitional phase towards Bandhan 2.0.”(Translation: Old Bandhan’s still haunting the balance sheet.)
“We see green shoots, confident of profitable growth.”(Translation: Don’t sell yet, we swear it’ll look
better in March.🌱)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Comment |
|---|---|---|---|
| Gross Advances | ₹1.40 lakh cr | +7% | Limping but steady. |
| Deposits | ₹1.58 lakh cr | +11% | Outpacing loan growth — banker’s dream. |
| Retail Deposits | ₹1.12 lakh cr | +16% | Real people, real money. |
| CASA Ratio | 28% | – | CFO’s new fitness goal. |
| NIM | 5.8% | ↓ from 6.4% | Repo cut hangover. |
| PAT | ₹112 cr | ↓88% | The ghost of EEB past. |
| GNPA / NNPA | 5% / 1.4% | Stable | “Stable” is banker-speak for “not worse.” |
| Credit Cost | 3.4% | ↓10bps QoQ | Small mercy. |
Decoded:Bandhan’s loan engine sputtered, but its deposit tank refilled nicely. It’s still driving uphill, but now with better brakes.
5. Analyst Questions
Q:Credit costs still high — when will they normalize?A:“By FY27, 2.5%.” (Translation: Two years, three prayers.)
Q:Why such a steep MCLR cut?A:“We recalibrated.” (Translation: We were the odd one out — now we’re normal.)
Q:Bihar election debt waivers?A:“Seen it all before.” (Translation: Politicians talk, we collect.)
Q:NIM outlook?A:“Bottomed out.” (Translation: Please
