1. Opening Hook
Bandhan Bank’s Q3FY26 felt like that Bollywood comeback montage—slow start, dramatic pause, then a cautious smile.
After years of being haunted by EEB ghosts and credit-cost jump scares, the bank finally brought a broom. GNPA fell, NNPA behaved, and management sounded calmer than a yoga influencer on Instagram Live.
But before you pop the champagne—profits are still dieting, NIMs are moody, and CASA quietly slipped out of the room. The bank is clearly shifting from “microfinance monologue” to “universal bank ensemble cast.”
Read on, because behind those improving ratios lies a very deliberate clean-up, some aggressive ARC spring-cleaning, and a management that really wants you to believe this time is different. 😏
2. At a Glance
- Advances up 10% YoY – Growth is alive, just no longer screaming from EEB rooftops.
- Deposits up 11% YoY – Retail showed up; CASA didn’t RSVP.
- GNPA at 3.3% – Asset quality glow-up courtesy ARC exits.
- PAT down 52% YoY – Profits still in recovery ward, QoQ physiotherapy helped.
- NIM at 5.9% – Stable QoQ, but YoY gravity still works.
- CRAR at 17.8% – Capital strong enough to sleep peacefully.
3. Management’s Key Commentary
“We continue to consciously reduce
our EEB exposure.”
(Translation: Never again putting all eggs in one microfinance basket.) 😌
“Non-EEB portfolio now contributes over 65% of incremental growth.”
(Translation: Retail and wholesale are the new favourite children.)
“Asset quality has improved across all segments.”
(Translation: ARC did God’s work this quarter.)
“Collection efficiency remains above 98%.”
(Translation: Borrowers are finally answering calls.)
“Credit cost moderated to 3.3%.”
(Translation: Bleeding slowed, bandages holding.)
“Digital transactions are now 98% of retail transactions.”
(Translation: Branches are emotional support centres.)
4. Numbers Decoded
| Metric | Q3FY26 | Decoded Meaning |
|---|---|---|
| Gross Advances | ₹1,452 bn | Growth is real, but diversified now |
| GNPA | 3.3% | ARC sale changed the optics |
| NNPA | 1.0% | Finally looks bank-like |
| NII | ₹26.9 bn | QoQ bounce, YoY hangover |
| PAT | ₹2.1 bn | Survival > celebration |
| NIM | 5.9% | Stable, not thrilling |
| CASA | 27.3% | TDs doing the heavy lifting |
One-liner: Asset quality healed faster than profitability.
5. Analyst Questions (Decoded)
- Q: Is EEB stress
