Bandhan Bank Limited has informed the Exchange about Transcript of the Earnings Call on the Unaudited Financial Results for the quarter (Q1) ended June 30, 2025.
BANDHANBNK · price
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Bandhan Bank reported Q1 FY26 PAT of INR 372 crores, down sharply from INR 1,063 crores a year ago (though only marginally up from INR 318 crores QoQ), as the EEB (microfinance) segment continued to drag performance due to industry-wide guardrail changes. Gross advances stood at INR 1.34 lakh crores (+6% YoY, -2.5% QoQ) with EEB portfolio contracting 15% YoY to INR 52,812 crores, while non-EEB advances grew a healthy 27% YoY. Deposits performed strongly at INR 1.55 lakh crores (+16% YoY) with retail term deposits up 34% YoY, and the secured book share rose to 52% from 43% a year ago. Asset quality showed sequential improvement with GNPA at 5%, NNPA at 1.4%, slippages declining to INR 1,553 crores (from INR 1,748 crores QoQ), and credit cost easing to 3.5% (from 3.9%). NIM moderated to 6.4% from 6.7% QoY, and management explicitly guided that NIM will be further moderated due to repo rate cuts, though partial offset is expected from lower cost of funds and improving slippages.
Near-term earnings remain under pressure from microfinance headwinds and margin compression, but sequential improvement in slippages, strong deposit growth, and rising share of secured assets signal a gradual recovery story. Stock sentiment is likely to stay cautious until EEB disbursals revive meaningfully, which management pegs to H2 FY26.