Bandhan Bank Posts Solid Preliminary Results for FY26

Total Deposits reached ₹166,344 crore, showing a 10.0% year-on-year growth. Loans and Advances stood at ₹154,235 crore, up 12.6% year-on-year.

The Latest Results

Bandhan Bank announced its preliminary financial results for the fiscal year ending March 31, 2026, highlighting strong growth in key balance sheet figures.

Total deposits saw a 10.0% year-on-year increase, reaching ₹166,344 crore. Quarter-on-quarter, deposits grew by 6.1%.

Loans and advances grew by a healthy 12.6% year-on-year to ₹154,235 crore, with a 6.2% quarter-on-quarter rise.

Retail deposits saw robust growth of 17.7% year-on-year, reaching ₹122,547 crore. However, CASA deposits grew more slowly at 2.8% year-on-year to ₹48,751 crore, resulting in a CASA ratio of 29.31%.

Collection efficiency remained high at 98.9% (excluding NPAs), and the Liquidity Coverage Ratio (LCR) was strong at approximately 131.76%.

Why This Matters

These preliminary figures suggest Bandhan Bank is expanding its operations, effectively attracting customer funds and deploying them through lending. High collection efficiency indicates good asset quality management, important given the bank's focus on microfinance and retail lending. The strong LCR provides assurance about the bank's short-term liquidity, a key sign of financial stability.

Previous Performance Context

Looking back, Bandhan Bank's fourth quarter of FY25 saw a sharp 483% year-on-year rise in net profit to ₹318 crore, mainly due to reduced loan loss provisions. However, Net Interest Income (NII) decreased by 4% year-on-year in that quarter. For the full FY25, the bank reported growth with net revenue up 16% to ₹14,458 crore and net profit up 23% to ₹2,745 crore. More recently, Q3 FY25 showed a profit dip of 42% year-on-year to ₹426.49 crore. That quarter also saw its CASA ratio fall to 31.7% and Net Interest Margin (NIM) drop to 6.90%, pointing to margin pressure.

What This Means for Investors

Shareholders gain an early look at the bank's operational performance for the latest fiscal period. The results suggest ongoing business momentum, particularly in deposit and loan growth, and highlight Bandhan Bank's continued focus on retail banking and collection efficiency. Investors will now compare these preliminary figures against historical performance and industry peers.

Risks to Watch

The financial figures released are preliminary and unaudited, meaning final audited results could differ. Additionally, past regulatory actions, such as the August 2025 penalty from the RBI for compliance issues, underscore the need for continuous adherence to regulations.

Peer Comparison

Bandhan Bank's preliminary FY26 deposit growth of 10.0% year-on-year and advances growth of 12.6% year-on-year look strong. For comparison, HDFC Bank reported 14.05% year-on-year deposit growth and 6.2% year-on-year advances growth for FY25 (ending March 2025). HDFC Bank's Net Interest Income grew 17.73% year-on-year during the same period.

Looking Ahead

Investors will be watching for the final audited financial results for the year ending March 31, 2026. Continued performance trends in deposit and advances growth, asset quality indicators (such as NPA levels), management's outlook on future growth and strategy, and profitability trends including Net Interest Margins (NIMs) and fee income will also be key.