Bandhan Bank reports steady growth in its Q2 provisional business metrics, with loans and advances reaching Rs 158,335 crore, up 13.1% YoY. While total deposits increased by 9.2%, the CASA ratio softened to 26.71%. The bank maintained a stable collection efficiency of 98.9%, providing a key indicator of underlying asset quality.
Bandhan Bank Reports Steady Q2 Growth
Loans and Advances: Rs 158,335 Crore
Total Deposits: Rs 172,689 Crore
Reader Takeaway: Loan growth remains strong at 13.1% YoY, though investors should monitor the CASA ratio moderation closely.
What just happened
Bandhan Bank has released its provisional, unaudited business performance figures for the quarter ended September 30, 2026. The bank reported a 13.1% year-on-year (YoY) increase in loans and advances (on-book and PTC), totaling Rs 158,335 crore. Total deposits for the same period stood at Rs 172,689 crore, reflecting a 9.2% growth compared to the previous year.
Why this matters
The data provides a snapshot of the bank's deposit mobilization and credit expansion strategy. While the retail deposit segment—including Current Account and Savings Account (CASA)—saw a robust 11.9% YoY growth to reach Rs 125,471 crore, the overall CASA ratio moderated to 26.71% from 29.40% in the previous quarter. This shift indicates that customers are increasingly favoring retail term deposits, which surged 16.8% YoY, to capitalize on higher interest rates.
Asset Quality
Collection efficiency remains a vital metric for the bank, particularly given its focus on Emerging Entrepreneur Business (EEB). As of September 30, 2026, the pan-bank collection efficiency (excluding NPA) held steady at 98.9%, identical to the June 2026 figures. The EEB segment reported a slight improvement in collection efficiency to 98.6%.
What to track next
Investors should look for the upcoming full quarterly financial results, which will be subject to review by the Audit Committee and statutory auditors. The primary area of interest will be how the shift in deposit mix—away from low-cost CASA—impacts the bank’s net interest margins and overall cost of funds in the coming quarters.