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Bandhan Bank Reports Strong Q4 Growth, Shares Slip

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AuthorAnanya Iyer|Published at:
Bandhan Bank Reports Strong Q4 Growth, Shares Slip
Overview

Bandhan Bank announced strong year-on-year growth for Q4 FY26. Provisional figures show loans and advances grew 12.6% to ₹1.54 lakh crore, and total deposits rose 10% to ₹1.66 lakh crore. The bank also saw strong momentum in retail deposits.

Q4 Financial Performance

Bandhan Bank's provisional update for the quarter ending March 31, 2026, revealed significant year-on-year expansion in key metrics. Loans and advances, including on-book and pass-through-certificate (PTC) portfolios, reached ₹1.54 lakh crore. This was a 12.6% increase from the previous year and a 6.2% rise from the prior quarter. Total deposits also grew 10% year-on-year to ₹1.66 lakh crore, up 6.1% from the prior quarter.

Retail Deposits Drive Growth

The bank's focus on retail deposits is showing results. Retail term deposits surged 30.1% year-on-year to ₹73,796 crore. Overall retail deposits, including CASA, grew by 17.7% to ₹1.22 lakh crore. This lifted the share of retail deposits in the bank's total base to 73.67%, up from 68.88% a year ago. Bulk deposits declined 6.9% year-on-year to ₹43,797 crore. CASA deposits grew 2.8% year-on-year to ₹48,751 crore, keeping the CASA ratio at 29.31%.

Liquidity, Collections, and Market Reaction

Bandhan Bank maintained a comfortable liquidity position, with a liquidity coverage ratio (LCR) of approximately 131.76% as of March 31, 2026. The bank reported robust collection efficiency at 98.9% for March 2026, up from 98.1% in December 2025 (excluding NPAs). Despite these positive operational indicators, Bandhan Bank's shares closed 1.27% lower at ₹145.8 on Friday, April 4. The stock has gained 1.12% year-to-date.

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