Stock Report

Bandhan Bank Advances Rise 16.4% YoY in Q1 FY27; Retail Deposit Mix Strengths to 74%

Posted On : 2026-07-03 22:06:24( TIMEZONE : IST )

Private lender Bandhan Bank Limited has disclosed its provisional operational metrics for the first quarter of the 2027 financial year, posting a healthy 16.4% year-over-year expansion in its loan portfolio. The bank also registered a structural improvement in its deposit granularity, successfully driving down high-cost bulk institutional liabilities in favor of sticky retail funds.

Strong Credit Momentum with Stable Asset Collection

Bandhan Bank's overall loan book-which aggregates its on-book lending exposure and pass-through certificates-reached ₹1,55,513 crores as of June 30, 2026. This reflects a solid 16.4% increase over the ₹1,33,624 crores held during the corresponding quarter of the previous fiscal year. On a sequential quarter-over-quarter basis, the loan book ticked up incrementally by 0.8% against the March 2026 baseline of ₹1,54,233 crores.

Alongside volume expansion, asset quality underwriting remained highly stable, marked by robust collection efficiency. The bank's overall collection efficiency held steady at 98.9% for June 2026, perfectly matching the numbers logged at the close of March.

Breaking down the underlying lending segments, collection efficiency for the Emerging Entrepreneurs Business micro-banking portfolio stood at 98.5% in June, down marginally from 98.6% in March. Meanwhile, the non-micro-banking segments showcased incremental collection strength, rising from 99.2% to 99.4% during the same timeframe.

Liability Reshaping Drives High Granularity

The bank's deposit profile recorded a massive structural transformation during the quarter. While total deposits contracted marginally by 0.9% sequentially to land at ₹1,64,886 crores, they marked an overall annual expansion of 6.6% compared to the ₹1,54,666 crores held in June 2025.

The brief sequential drop was driven entirely by a deliberate reduction in non-retail bulk deposits, which plunged 12.7% year-over-year and 2.0% sequentially to close at ₹42,930 crores. This deliberate pruning shrunk the bulk-to-total term deposits ratio to 36.88%.

Conversely, the core retail liability engine demonstrated high resilience:

Retail Deposits: Total retail deposits (including low-cost operational accounts) surged 15.6% year-over-year to touch ₹1,21,956 crores, which pushes the retail-to-total deposit mix up to an all-time high of 73.96%.

CASA Performance: Low-cost Current Account and Savings Account balances expanded by 15.8% annually to settle at ₹48,478 crores. This helped the bank's structural CASA Ratio improve to 29.40%, scaling up from 27.06% in June 2025 and 29.31% in March 2026.

Retail Term Deposits: Stable, long-term retail fixed deposits climbed 15.4% year-over-year to stand at ₹73,478 crores.

The bank concluded its filing by highlighting an exceptional liquidity position, with its quarterly average Liquidity Coverage Ratio standing comfortably at approximately 146.65%. All disclosed operational parameters remain provisional and are subject to standard reviews by the board's audit committee and statutory auditors.

Shares of Bandhan Bank Limited was last trading in BSE at Rs. 200.55 as compared to the previous close of Rs. 205.10. The total number of shares traded during the day was 442089 in over 4796 trades.

The stock hit an intraday high of Rs. 207.90 and intraday low of 198.40. The net turnover during the day was Rs. 89156917.00.