The lender’s operating profit declined 8.3% YoY to Rs 1,440 crore, reflecting higher operating expenses, which rose nearly 13% during the quarter. However, a sharp drop in provisions — down over 46% YoY — helped boost bottom-line growth significantly.
On a sequential basis, profit surged 159% QoQ, highlighting normalisation after a weaker December quarter.
Asset quality continued to improve, with gross non-performing assets (GNPA) ratio easing to 3.3% from 4.7% a year ago, while net NPA stood at 1.0%. Credit cost declined sharply to 2.0%, down 195 basis points YoY, reflecting better recoveries and tighter underwriting.
The bank’s loan book remained on a growth trajectory, with gross advances rising 12.6% YoY to Rs 1.54 lakh crore. Deposits increased 10% YoY to Rs 1.66 lakh crore, although CASA ratio declined to 29.3%, indicating some pressure on low-cost deposits.
Retail deposits showed strong traction, growing 17.7% YoY, underscoring the bank’s ongoing shift towards a more granular liability franchise. Meanwhile, the secured loan mix improved to 56.2%, highlighting a calibrated move towards lower-risk assets.
Margins remained under pressure, with net interest margin (NIM) slipping 46 basis points YoY to 6.2%, though it improved sequentially. Return ratios, however, showed improvement, with return on assets (RoA) at 1.1% and return on equity (RoE) at 8.5%, both expanding meaningfully from a year ago.For the full year FY26, Bandhan Bank reported a steep 55% decline in profit to Rs 1,220 crore, reflecting elevated stress and provisioning during earlier quarters, even as the Q4 performance signalled a turnaround.
Operationally, the bank continued to diversify its portfolio beyond its traditional microfinance base, with non-EEB (Emerging Entrepreneurs Business) loans growing nearly 25% YoY and now forming a larger share of the book.
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The quarter also saw continued improvement in collection efficiency and borrower behaviour, with over 96% of customers classified as full-paying, indicating stabilisation in asset quality trends.
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