Bandhan Bank Q2 FY26 Concall Decoded: Repo Cuts, Reality Checks & The Great EEB Detox

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