Bandhan Bank Research

Bandhan Bank Ltd NSE: BANDHANBNK · BSE: 541153 · ₹ crore unless stated

Data as of 12 Oct 2026 (price: Screener.in, 12:45 pm IST). Latest audited year: FY26 (results 28 Apr 2026). Latest reported quarter: Q1 FY27 (results and call 21 Jul 2026). Q2 FY27 results are not yet published. Only the provisional business update of 3 Oct 2026 is out, and it is incorporated throughout.

CMP (12 Oct 2026)

₹159

+0.95% on the day; 52W H/L ₹220.70 (15 Jul 2026) / ₹134.30 (9 Dec 2025) (Business Today, 23 Jul 2026)

Market cap

₹25,593 cr

161.1 cr shares; face value ₹10

P/E (TTM) · P/B

18.9x · ~1.0x

TTM EPS ₹8.40; book ₹159 (Screener); P/ABV ~1.03x Est.

Dividend yield

0.95%

FY26 DPS ₹1.50 (same as FY24 and FY25)

Company overview

Headquarters	Floors 12–14, Adventz Infinity@5, Sector V, Salt Lake, Kolkata Fact
Origins	2001 not-for-profit microfinance (Bandhan-Konnagar), Bagnan, West Bengal. NBFC-MFI from 2006–09. Largest Indian MFI by 2010.
Bank licence	RBI in-principle approval Apr 2014; licence 17 Jun 2015; started as a universal bank 23 Aug 2015 with 2,523 outlets. First Indian MFI to become a universal bank.
Listed	NSE/BSE, March 2018. IPO price band ₹370–375; issue ~₹4,473 cr (fresh ₹3,662 cr + OFS ₹811 cr), open 15–19 Mar 2018 Fact (The Quint / BloombergQuint). Became India's 8th most valuable bank on listing day (annual report).
Promoter	Bandhan Financial Holdings Ltd (BFHL), the NOFHC. It is wholly owned by Bandhan Financial Services Ltd and held 37.53% at 30 Jun 2026.
MD & CEO	Partha Pratim Sengupta (since 1 Nov 2024; 3-yr term). Ex-MD & CEO of Indian Overseas Bank and ex-Deputy MD of SBI.
Chairman	Debasish Panda (IAS 1987; ex-Chairman of IRDAI). Non-executive chairman from 5 Jul 2026.
Network (Jun-26)	6,388 outlets: 1,988 branches + 4,400 EEB banking units. 438 ATMs. 35 of 36 States/UTs.
People / customers	74,744 employees (Jun-26). 3.18 crore customers.
Index / sector	Private-sector bank. Nifty Bank membership: not verified in this run.

What it is, in plain English

Bandhan is India's largest microfinance lender, now a full bank. It started by giving small group loans to poor rural women in West Bengal and the North-East. It became a universal bank in 2015 and bought GRUH Finance (affordable housing) in 2019. Since 2023, under "Bandhan 2.0", it has been moving away from unsecured microloans toward secured lending: housing, vehicle and gold loans, and corporate and business banking.

Unsecured microloans (EEB) were 60%+ of the loan book a few years ago. At June 2026 they were 33.8%. The secured share rose from 42.9% (Q1 FY25) to 56.8%.

The deposit franchise is 52% East-sourced, and West Bengal alone is 41%. Earnings collapsed in FY26 (PAT −55%) after the 2024–25 microfinance credit cycle. They are now recovering through lower provisions, while margins and costs are under pressure.

Quick verdict scorecard

Business

Medium

mid-transition

Management

Medium

high churn

Financial

Medium

capital strong RoE weak

Valuation

Fair

~1.0x book

Overall

Neutral

show-me

Banking KPIs: FY26 and Q1 FY27

NII FY26 / Q1 FY27

₹10,830 cr

FY26 −5.8% YoY. Q1 FY27 ₹2,921 cr (+5.9% YoY)

PAT FY26 / Q1 FY27

₹1,224 cr

FY26 −55.4% YoY. Q1 FY27 ₹502 cr (+34.9% YoY)

NIM FY26 / Q1 FY27

6.1% / 6.2%

FY25 7.1%, FY24 7.3%

RoA / RoE Q1 FY27

1.0% / 7.7%

FY26 0.6% / 4.8%. FY25 1.5% / 11.6%

GNPA / NNPA (Jun-26)

3.1% / 0.9%

PCR 71.1% (85.9% incl. technical write-offs)

Credit cost Q1 FY27

1.8%

FY26 3.0%, FY25 2.9%. FY27 guide 1.6–1.8%

CRAR / CET1 (Jun-26)

18.2% / 17.5%

Incl. profit. Regulatory minimum 11.5%

CASA ratio

26.7%

Sep-26 provisional, down from 29.4% Jun-26 and 37.1% Mar-24

Newest data point (3 Oct 2026, Q2 FY27 provisional) Fact:

Loans ₹1,58,335 cr: +13.1% YoY, +1.8% QoQ.
Deposits ₹1,72,689 cr: +9.2% YoY, +4.7% QoQ.
CASA fell 4.8% QoQ to ₹46,131 cr, so the CASA ratio dropped to 26.71% from 29.40%.
Bulk deposits rose 10.0% QoQ to ₹47,218 cr. This reverses the bulk run-down management described on 21 Jul.
Retail-deposit share fell to 72.66% from 73.96%.
Collection efficiency is steady: EEB 98.6%, pan-bank 98.9%. LCR is about 137.9%.

Read-across: Q2 funding costs are likely to rise, consistent with management's warning of a 20–25 bp rise in SA cost. Analyst View

Annual PAT, FY19–FY26 (₹ cr)

GNPA / NNPA %, Q1 FY25–Q1 FY27

Data freshness: price 12 Oct 2026, 12:45 IST. Financials to Q1 FY27 (30 Jun 2026). Business update to 30 Sep 2026. Ratings to 28 Sep 2026. Shareholding to 30 Jun 2026.

Analyst Notes

First-person editorial read. Everything here is Analyst View unless a figure is tagged otherwise. All figures are sourced in Tabs 5–14.

1. The credit cycle has turned, but earnings have not normalised. Bandhan has come through its third major stress cycle (demonetisation 2016, COVID 2020–22, and the 2024–26 microfinance over-leverage cycle). The asset-quality line looks clean again: GNPA 3.1%, NNPA 0.9%, EEB collection efficiency 98.5–98.6%, and the EEB stress pool down 31% YoY to ₹3,980 cr.

That cleanliness was bought, not just earned:

₹2,370 cr of technical write-offs in FY26.
A ₹3,165 cr NPA sale and a ₹3,707 cr written-off pool sale to ARCs in Q3 FY26, at 18% and 9% of book value.
Another ₹600 cr of write-offs plus a ₹291 cr housing-NPA ARC sale in Q1 FY27.

The real test is slippages. They were ₹1,079 cr in Q1 FY27, still about 2.8% annualised of loans, against ₹1,028 cr in Q4.

2. The market's verdict on 22 Jul was about the RoA reset, not the quarter. Q1 FY27 PAT rose 35% YoY to ₹502 cr. The stock still fell as much as 14.6% intraday on 22 Jul to ₹177.50 (previous close ₹208.83), and ~19% over two sessions to ₹169.25 on 23 Jul, because management cut its exit-FY27 RoA aspiration from 1.6–1.8% to 1.2–1.4%. They attributed ~30 bp to NIMs (funding costs rising despite no repo hike) and ~10 bp to opex (tech costs up 65% YoY).

This is the first explicit cut to the exit-FY27 RoA target, which management says dates from Dec 2024 and which was reaffirmed in Apr 2026 (1.6–1.7% ±10 bp). The medium-term 1.6–1.8% aspiration is now pushed beyond FY27. It sits alongside other slippages:

The 6.5% exit-FY27 NIM target was withdrawn.
The long-term credit-cost guide drifted from 1.5–1.6% (Apr 2025) to 1.6–1.8%.
EEB recovery slipped from "Q2 FY26" to mid-Nov 2025.
The commitments to grow deposits faster than loans and to cut bulk deposits were reversed in Q2 FY27.

Guidance credibility is now a valuation input. At ₹159 the stock trades at about 1.0x book. The market prices Bandhan as a ~8–10% RoE bank, not as the 19–23% RoE microfinance franchise it was in FY18–FY20 (Screener).

3. Bandhan 2.0 is working on mix but not yet on returns. The secured share rose from 42.9% to 56.8% in eight quarters, and non-EEB loans grew 27% YoY. The cost of that diversification is visible:

NIM fell from 7.3% (FY24) to 6.1% (FY26).
Cost-to-income rose from 48.9% (FY25) to 61.5% (Q1 FY27).
Opex/assets is 4.3%.

A shareholder on the Q1 call said the secured book "is probably 0% ROA for us", and management did not refute the economics. Instead it pointed to DSA dependence falling and the branch channel now sourcing over ₹900 cr a quarter. Wholesale banking is 33% of loans and growing 38%, but it is consortium lending at competitive rates and fee capabilities (forex, CMS) are only now being built. The RoA bridge depends on fee income (+10–20 bp) and credit cost (1.8% falling to 1.6–1.7%), not on margin.

4. Liabilities are the binding constraint, and the Q2 update is a red flag. The CD ratio is about 92%. The bank chose in Q1 to shrink bulk deposits (26% of deposits, down from 32%). The 3 Oct provisional numbers show the opposite in Q2: bulk +10% QoQ, CASA −4.8% QoQ, CASA ratio 26.7%. That is the lowest in this series, against 37.1% at Mar-24. Retail TD growth (+8% QoQ) is healthy but expensive.

The deposit base is 52% East and 41% West Bengal, so Bandhan does not have the metro CASA engine its secured-lending ambitions need. Expect NIM pressure in Q2 and Q3 FY27, consistent with management's "holding 6.2% would be a great achievement".

5. Governance: stable at the top, high churn underneath. The founder, C.S. Ghosh, retired on 9 Jul 2024. An interim CEO (Ratan Kesh) bridged to Partha Pratim Sengupta from 1 Nov 2024. Sengupta's term runs to Oct 2027, so renewal becomes a 2027 catalyst.

Since then the bank has lost or replaced, mostly with interim fills:

CFO (Rajeev Mantri left 25 Sep 2026; Vinay Jain is interim).
EEB head (Vishal Wadhwa, Jun 2026).
Two Chief Audit Executives.
The Chief of Internal Vigilance.
The housing/consumer head.

An RBI-nominated additional director (Arun Kumar Singh, ex-RBI) has sat on the board since 24 Jun 2024, and RBI has extended his term to Jun 2027. RBI imposed penalties of ₹44.7 lakh (Aug 2025, IRAC automation) and ₹41.8 lakh (Apr 2026, KYC). These are small, but they are consistent with supervisory attention.

6. The promoter is a steady seller, and that overhang is under-discussed. BFHL held 62.60 cr shares (38.86%) at Mar-26 and 60.47 cr (37.53%) at Jun-26. That is about 2.13 cr shares, roughly ₹350–400 cr at prevailing prices, sold in one quarter Est.. Share count is flat (only ESOP allotments), so this is secondary selling, not dilution.

The Jun-25 "promoter 40.92%" figure on aggregators is an artefact of RBI's 15 Apr 2025 letter aggregating Bandhan Mutual Fund's holding with BFHL's. Licensing rules require further step-downs over time (see Tab 7), so expect continued supply. Meanwhile domestic MFs have absorbed FII exits: DII 27.5% vs FII 18.6% at Jun-26, against 15.1% and 28.3% two years earlier.

What to watch while reading:

Is Q2 FY27 NIM ≥6.0% despite the CASA slide?
Do EEB slippages stay ≤₹600 cr per quarter through the Bengal post-election period and the energy-price shock?
Does the cost-to-income ratio peak in FY27, as management implies ("taper from FY28")?
BFHL selling cadence.
The CFO appointment and Sengupta's renewal in 2027.

My read: Bandhan is now an asset-quality recovery story priced at book, but it is not yet a returns story. The franchise (3.2 cr customers, deep East presence, 18% CRAR) is real. The 2.0 pivot has made the book safer and the P&L thinner. I would wait for two clean quarters of ≥1.1% RoA and stabilising CASA before paying above 1.1x book. Analyst View

Business Deep-Dive

Bandhan is a scheduled private-sector universal bank. The asset side is five lending verticals. The liability side is a branch-led retail deposit franchise concentrated in Eastern India. Fee income comes mainly from loan processing fees, third-party distribution (insurance, mutual funds), service charges and ARC-related recoveries. Fact (Q1 FY27 investor deck, 21 Jul 2026)

1. What it lends: product by product (30 Jun 2026)

Vertical	What it is	Book ₹ bn	Share	YoY	Security / risk	Origin
EEB – Group loans	Joint-liability group microloans to women (micro-entrepreneurs) via 4,400 banking units and doorstep collection. 12.9 mn active borrowers.	352.2	22.6%	+4.7%	Unsecured; MFIN guardrails; PSL-eligible (~40% of EEB qualifies per mgmt)	Legacy Bandhan MFI (2001→)
EEB – SBAL	Small Business & Agri Loans: individual loans to graduated microfinance customers	174.2	11.2%	−9.1%	Largely unsecured	Legacy MFI
Housing finance	Home loans ₹263.0 bn, LAP ₹79.2 bn, construction finance ₹3.1 bn. Borrowers 56.5% salaried, 42.0% self-employed, 1.5% professionals.	345.4	22.2%	+5.7%	Secured (mortgage)	GRUH Finance (amalgamated 17 Oct 2019)
Retail assets	Vehicle (CV/CE, auto, 2W) ₹61.1 bn; personal ₹28.3 bn; gold ₹28.4 bn; OD against TD ₹23.8 bn; others ₹19.5 bn. Credit card launch pending (Q2 FY27 target).	161.0	10.4%	+45.0%	Mostly secured; personal loans unsecured	Bandhan 2.0 build-out (since ~FY23)
Wholesale banking (WBG)	FIG/healthcare/education (incl. PTC) ₹220.5 bn; Corporate Banking Group ₹203.1 bn; Business Banking ₹21.9 bn; Aspiring Business Group (ex-SEL) ₹25.2 bn; others incl. SME LAP and agri ₹42.1 bn	512.8	33.0%	+38.4%	FIG book 96% rated A- or above; CBG 76% BBB+ or above	Bandhan 2.0 build-out
IBPC	Inter-bank participation certificates	10.0	0.6%	n.m.	Bank risk	Treasury / PSL
Total gross advances (incl. PTC ₹4.03 bn)		1,555.6	100%	+16.4%	Secured 56.8%

Source: Q1 FY27 investor deck, slides 9–13. EEB total ₹526.4 bn = 33.8% (39.5% at Jun-25). YoY for group/SBAL computed from ₹336.5 / ₹191.6 bn at Jun-25 Est..

2. How it raises money: the deposit franchise

Deposits (₹ bn)	Jun-25	Mar-26	Jun-26	Sep-26 (prov.)
Current account	64.7	114.8	88.9	461.3 (CASA)
Savings account	353.9	372.7	395.9	461.3 (CASA)
Retail term deposits	636.6	737.9	734.8	793.4
Bulk/other TD (incl. CDs)	491.5	438.0	429.3	472.2
Total	1,546.7	1,663.4	1,648.9	1,726.9
CASA ratio	27.1%	29.3%	29.4%	26.7%
Retail (CASA+RTD) share	68.2%	73.7%	74.0%	72.7%

EEB customers contribute only 2.4% of deposits. Average SA balance is ₹41.6k for general banking and ₹1.4k for EEB customers. ~86% of bulk deposits are non-callable. The deck's CASA chart labels its first bar "Mar'25" at 27.1%, but the Mar-25 press release states 31.4%. We treat 27.1% as Jun-25. Fact/Est.

3. Where: the physical footprint (30 Jun 2026)

Channel	Jun-25	Mar-26	Jun-26
Branches	1,750	1,955	1,988
EEB banking units	4,594	4,400	4,400
Total outlets	6,344	6,355	6,388
ATMs	438

Outlets by region (Jun-26): East 45%, NE 10%, Central 16%, North 8%, South 11%, West 10%. By location: rural 37%, semi-urban 33%, urban 18%, metro 12%. West Bengal has 1,727 outlets. 240 new branches were opened in FY26, including conversions of housing-finance centres.

Geographic concentration: loans vs deposits

Jun-26	Loans	Deposits
Eastern region	33%	52%
North-East	4%	4%
Central	14%	11%
Northern	10%	11%
Southern	17%	8%
Western	22%	14%
West Bengal alone	24%	41%
Non-East share (bank metric)	62.1%	43.5%

Top loan states: WB 24%, Maharashtra 15%, Bihar 6%, Gujarat 7%, MP 6% (top-5 ≈58%). Top deposit states: WB 41%, Maharashtra 12%, UP 6%, Delhi 4%, Odisha 5%. West Bengal is ~42% of the EEB book (Q3 FY26 call). In Jan 2025 Karnataka was ₹740 cr of a ₹56,000 cr EEB book (~1.3%) and Tamil Nadu <1%.

4. How it does it: operating model and technology

EEB model: group lending with weekly/fortnightly/monthly repayment options, doorstep collections and cashless push. The "Bandhan + ≤2 lenders" share of the EEB book is ~96%. Underwriting was rebuilt in FY26 ("new model ... new credit underwriting system"). The MFIN Guardrails 2.0 (from Apr 2025) cap borrowers at 3 lenders and total unsecured microfinance exposure at ₹2 lakh, and block lending to anyone 60+ DPD.
Secured verticals: the bank is moving from DSA-sourced to branch-sourced. Branch-channel sourcing rose from ~₹200 cr a month to >₹900 cr a quarter, per the Q1 FY27 call. A new Loan Origination System is the key FY27 tech spend.
Technology: the bank migrated to a new Core Banking System in 2023. IT cost is ~8% of opex (~9.5% including depreciation), up from 5–6% two years ago, and tech cost rose 65% YoY in Q1 FY27. 98% of retail transactions and 92% of SA openings are digital. Recent launches include Static-QR-on-POS, corporate salary-account digital onboarding and an upgraded MF platform.
Wholesale: the bank entered forex and cash management in FY26–27 to build fee "wallet share" with corporates.
Certifications/IP: not applicable for a bank in the ISO/IATF sense. Awards include ET Edge Best BFSI Brands 2026 and the Gallup Exceptional Workplace Award 2025 (second win). No patents disclosed.

5. USP / moat and its limits

Moat

India's largest bank-held microfinance book (₹52,641 cr EEB), with 24 years of field data.
12.9 mn active EEB borrowers.
Rural/semi-urban reach: 70% of outlets.
Low-cost doorstep collection network and a strong brand in WB and Assam.
Very strong capital (CET1 17.5%) relative to its risk.

Limits

The moat sits in the riskiest, most politically exposed product.
Deposits are East-heavy, with a weak metro CASA franchise.
Secured products are commoditised, and Bandhan is a late entrant in each.
EEB borrowers bring almost no deposits (2.4%), so cross-subsidy is limited.

6. Distribution and GTM

Direct branch and banking-unit network. DSAs and connectors source secured retail and housing. Relationship managers run wholesale. Digital (DIY and tab-assisted) handles liabilities. Third-party products include life insurance (Kotak Life, Bajaj Allianz Life, HDFC Life and the promoter-group Bandhan Life) and mutual funds. FY26 third-party income was ₹548.5 cr (+42% YoY). Fact

Exports/overseas: no overseas branches. FCNR(B) mobilisation began in Q1 FY27 (₹30 cr).

Segment Analysis & Loan Mix

Banks report AS-17 segments (Treasury / Retail / Wholesale / Other), which say little about economics. The decision-useful view is management's five business verticals, shown first. Vertical-level profitability is not disclosed; we infer it from yields, credit cost and the call commentary.

1. Loan book by vertical (₹ bn, gross advances incl. PTC)

Vertical	Jun-25	Mar-26	Jun-26	YoY	QoQ	Share Jun-25	Share Jun-26	GNPA ₹bn Jun-26	GNPA % Est.
EEB (Group + SBAL)	528.1	539.1	526.4	−0.3%	−2.3%	39.5%	33.8%	31.0	5.9%
Housing	326.6	347.9	345.4	+5.7%	−0.7%	24.4%	22.2%	8.0	2.3%
Retail assets	111.0	160.9	161.0	+45.0%	+0.1%	8.3%	10.4%	3.5	2.2%
Wholesale banking	370.5	484.5	512.8	+38.4%	+5.8%	27.7%	33.0%	6.3	1.2%
IBPC	0	10.0	10.0	n.m.	0%	0.0%	0.6%	–	–
Total	1,336.2	1,542.3	1,555.6	+16.4%	+0.9%	100%	100%	48.8	3.1%

GNPA by segment from deck slide 20 (EEB 47.5 → 31.1 → 31.0; housing 8.1 → 9.8 → 8.0; WBG 7.3 → 5.8 → 6.3; retail 3.3 → 3.5 → 3.5 ₹bn). Segment GNPA % is our division of GNPA by segment book.

Secured vs unsecured mix, Q1 FY25–Q1 FY27 (secured %)

Average advances by vertical (₹ bn)

Avg	Q1 FY26	Q2	Q3	Q4	Q1 FY27	YoY
EEB	543.1	520.5	515.2	501.0	524.6	−3.4%
Housing	321.3	326.6	332.4	339.6	346.3	+7.8%
Retail	104.8	114.1	127.8	143.4	155.9	+48.8%
Wholesale	353.4	369.7	401.9	446.6	477.3	+35.1%
Total	1,323.6	1,331.7	1,397.3	1,431.4	1,514.2	+14.4%

2. Vertical-by-vertical economics

Vertical	Customers / product	Growth driver or drag	Margin profile Analyst View	Management stance
EEB	12.9 mn women borrowers; JLG + SBAL. Disbursements ₹10,500 cr in Q1 FY27 (Q4 FY26 ₹15,040 cr; Q1 FY26 ₹10,710 cr).	Drag: guardrails 2.0, the 2024–26 stress cycle, the West Bengal elections (Apr 2026), the energy-price shock and gas-cylinder rationing hitting micro-entrepreneurs. Lending rate +100 bp from Feb 2026.	Highest yield (~20%+ implied). Credit cost 3.3% in Q1 FY27, against a "steady state" guide of 2.5–3%. Still the main profit pool.	Cap at 33–35% of book; FY27 growth 5–10%; "we are the leader, and we will be the leader".
Housing	Ex-GRUH affordable housing; 56.5% salaried. Disbursals ₹1,500 cr in Q1 FY27 (₹2,460 cr in Q4).	Drag: restructured into 3 verticals in FY26 ("teething problems"); head resigned Sep 2025; NPAs rose to ₹980 cr at Mar-26; ₹291 cr housing NPA sold to ARC in Q1 FY27.	Low yield, low credit cost. ROA likely below the bank average after opex.	Revive growth; branch-led sourcing via the new LOS.
Retail assets	CV/CE, auto, gold, personal, TD-OD. Disbursals ₹2,270 cr in Q1 FY27.	Fastest growing (+45%). Q1 was flat QoQ due to the RBI gold-loan circular systems change (Apr–mid-May) and TD-OD run-off.	Mid yield; sub-scale opex; "takes time to break even" (FY25 call).	Double-digit QoQ growth to resume from Q2; credit card launch.
Wholesale	FIs, healthcare and education, mid-corporates, business banking.	+38% YoY; "some of the best names in the industry"; consortium pricing.	Thinnest NIM; low credit cost; fee cross-sell (forex, CMS, salary accounts) only just starting.	Build wallet share; offset NII dilution with fees.

Fastest grower: retail assets (+45% YoY) and wholesale (+38%). Wholesale added ₹14,230 cr of book in 12 months, more than any other vertical. This is the core of Bandhan 2.0's de-risking.

Under pressure: EEB (−0.3% YoY, −2.3% QoQ) and housing (−0.7% QoQ). EEB yields the most but is capped by policy and stress. Housing, the GRUH legacy that was meant to anchor secured growth, has grown only 5.7% YoY.

3. AS-17 reported segments (Q1 FY27, ₹ cr)

Segment	Revenue Q1 FY27	Revenue Q4 FY26	Revenue Q1 FY26	FY26 revenue
Treasury	658.5	662.7	951.3	3,083.6
Retail banking (incl. EEB, housing, retail)	5,528.6	5,506.8	5,468.5	21,911.6
Wholesale banking	829.6	746.5	625.0	2,727.9
Other banking operations	123.5	213.5	83.8	548.3

Source: Q1 FY27 results filing (₹ lakh converted to ₹ cr). Segment results and assets columns did not extract cleanly from the scanned filing and are omitted rather than risk misstatement. The bank has no Digital Banking Unit segment.

4. Management's stated focus

Target mix: ~60% secured / ~40% unsecured; EEB 33–35% (Q1 FY27 call).
FY27 loan growth ~14% (EEB 5–10%, non-EEB 20%+). Medium-term 15–17% advances CAGR, with deposits growing faster (Q3 FY26 call).
Secured mix could rise to 57–58% over the next ~7 quarters (Q2 FY26 call). It reached 56.8% by Q1 FY27.

Financials: Profit & Loss (Bank format)

Standalone (the bank has no subsidiaries). In bank accounts "revenue" is interest earned. Data aggregators label "interest earned" as Sales and fold provisions into "Expenses", which produces a misleading negative "financing profit". We use the bank's own NII → PPOP → provisions → PAT build. Cross-check: Screener interest earned minus interest expended reproduces reported NII to within ₹7 cr every year.

1. Five-year annual P&L (₹ cr)

Line	FY22	FY23	FY24	FY25	FY26
Interest earned	13,871	15,905	18,870	21,948	21,689
Interest expended	5,157	6,645	8,551	10,458	10,859
Net interest income	8,714	9,260	10,326	11,491	10,830
NII growth	–	+6.3%	+11.5%	+11.3%	−5.8%
Other income	2,823	2,469	2,171	2,967	2,734
Net total income	11,537	11,729	12,497	14,458	13,564
Operating expenses	split not disclosed in sources accessed			7,070	7,700
Operating profit (PPOP)	–			7,389	5,870
Provisions & contingencies	–			3,770	4,131
Opex + provisions combined (Screener) Est.	11,408	8,836	9,548	10,834	11,830
Profit before tax	129	2,893	2,943	3,623	1,734
Tax rate	2%	24%	24%	24%	29%
Profit after tax	126	2,195	2,230	2,745	1,224
PAT growth	−94%	n.m.	+2%	+23%	−55%
EPS (₹)	0.78	13.62	13.84	17.04	7.60
NIM	n.a.	7.2%	7.3%	7.1%	6.1%
Credit cost	n.a.	n.a.	n.a.	2.9%	3.0%
Cost-to-income	n.a.	n.a.	n.a.	48.9%	56.8%
Opex / avg assets	n.a.	n.a.	n.a.	4.0%	4.0%
RoA / RoE	~0.1% / 1%	n.a. / 12%	1.4% / 11%	1.5% / 11.6%	0.6% / 4.8%
DPS (₹)	n.a.	n.a.	1.50	1.50	1.50

Sources: Screener.in standalone (interest, other income, PBT, PAT, EPS, tax); company transcripts and press releases (NII FY23 ₹9,260 cr, FY24 ₹10,326 cr, FY25 ₹11,491 cr, FY26 ₹10,830 cr; NIM; RoA/RoE); Q1 FY27 deck slide 31 (FY25/FY26 opex, PPOP, provisions). FY22 NII and the combined opex+provisions line are computed from Screener Est.. FY22 RoE ~1% per Screener ratios.

2. Quarterly P&L: last 9 quarters (₹ cr)

Quarter	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Interest earned	5,536	5,500	5,479	5,434	5,476	5,354	5,431	5,428	5,631
NII	3,005	2,934	2,815	2,756	2,758	2,589	2,688	2,796	2,921
NII YoY	n.a.	n.a.	n.a.	−4%	−8.2%	−11.8%	−4.5%	+1.4%	+5.9%
Other income	528	609	1,112	700	726	546	691	771	604
PPOP	n.a.	n.a.	2,021	1,571	1,668	1,310	1,445	1,441	1,358
Provisions	n.a.	n.a.	1,376	1,260	1,147	1,153	1,155	677	683
PBT	1,418	1,249	645	311	521	158	290	764	676
PAT	1,063	937	426	318	372	112	206	534	502
PAT YoY	+47%	+30%	−42%	+478%	−65%	−88%	−52%	+68%	+35%
PAT QoQ	n.m.	−12%	−55%	−25%	+17%	−70%	+84%	+160%	−6%
NIM	7.6%	7.4%	6.9%	6.7%	6.4%	5.8%	5.9%	6.2%	6.2%
Credit cost	n.a.	n.a.	4.1%	3.9%	3.5%	3.4%	3.3%	2.0%	1.8%
Cost-to-income	n.a.	n.a.	n.a.	n.a.	52.1%	n.a.	n.a.	59.6%	61.5%
RoA (ann.)	2.1% (H1)		n.a.	n.a.	0.8%	~0.2% Est.	0.4%	1.1%	1.0%

NII for Q1–Q3 FY25 is Screener interest earned minus interest expended Est.; it matches reported where reported (Q2 FY25 ₹2,933.7 cr, Q4 ₹2,755.9 cr). PPOP for Q3 FY25 and Q2–Q3 FY26 is PBT + provisions. Q4 FY25 PAT +478% is against Q4 FY24 PAT of ₹55 cr (the write-off quarter).

Quarterly PAT (₹ cr)

NIM % trend

3. Non-interest income detail (₹ mn)

Item	Q1 FY26	Q4 FY26	Q1 FY27	YoY	FY25	FY26	YoY
Processing fees	1,698	2,761	1,927	+13.5%	8,294	8,544	+3.0%
Third-party income	838	2,137	1,235	+47.3%	3,857	5,485	+42.2%
Treasury (investment sale/revaluation)	2,507	64	238	−90.5%	1,706	3,012	+76.6%
Release of provision on SR redemption (ARC)	412	330	501	+21.6%	2,323	1,454	−37.4%
Collection fees from ARC	130	278	148	+14.1%	632	598	−5.4%
Product / service charges	880	1,285	1,357	+54.3%	3,201	4,021	+25.6%
Bad-debt recovery (on written-off)	200	159	143	−28.7%	1,797	847	−52.9%
Others (FY25 incl. CGFMU ₹5.36 bn + Assam ₹0.52 bn)	594	692	489	−17.7%	7,856	3,379	−57.0%
Total	7,259	7,707	6,038	−16.8%	29,666	27,340	−7.8%

Ex-treasury, Q1 FY27 other income grew ~22% YoY. Ex-CGFMU/Assam one-offs, FY26 grew 15% (company). ARC-linked items (SR provision release, ARC collection fees, written-off recoveries) were ₹290 cr, or 11%, of FY26 other income. They will fade as the legacy pool runs off. Est.

4. One-time items log

Quarter	Item	₹ cr	P&L line
Q4 FY24	Technical write-off of COVID-vintage EEB loans (₹3,053 cr of it in the CGFMU-covered pool) plus additional provisions; quarter credit cost 5.8% (1.9% underlying)	3,852 w/o; 1,774 prov.	Provisions (PAT ₹55 cr)
Q1 FY25	EEB risk weight raised 75% → 125% (−362 bp CRAR); reversed by RBI clarification in Feb 2025	–	Capital
Q3 FY25	CGFMU final claim settlement + Assam Relief Scheme receipt	+538 / +52	Other income
Q3 FY25	Technical write-off ₹1,266 cr (incremental provision ₹336 cr); NBA provision ₹30 cr; staff one-off ₹166 cr	−532	Provisions / opex
Q1 FY26	Treasury gains	~+250	Other income
Q3 FY26	ARC sale: cash on written-off pool ₹126 cr to other income; cash on NPA pool ₹303 cr netted in provisions; labour-code gratuity ₹120 cr	+126 / −120	Other income / opex
Q1 FY27	New wage-code gratuity provision; ARC recovery ₹120 cr (housing pool) in recoveries	−61	Opex

Earnings-quality check.

For banks, operating cash flow is driven by deposit and loan flows and is not a profit-quality test. Screener CFO was ₹1,143 cr in FY26 and ₹2,752 cr in FY25.
The relevant tests are provision adequacy and recurring vs one-off income. PCR including technical write-offs is 85.9%, and the bank provides beyond IRAC (D1 ~78%, D2+ ~100%; standard EEB +1% buffer). That supports quality.
Detractors: recent PAT growth is provision-led. PPOP fell 20.6% in FY26 and 18.6% YoY in Q1 FY27. ARC-linked income and write-off recoveries are non-recurring by nature.
Interest income is recognised on a portfolio still carrying 5.9% EEB GNPA, and the Q2 FY26 accounting change ("ballooning" overdue recognition) accelerated NPAs. Analyst View

Balance Sheet, Asset Quality, Capital & Ratios

1. Five-year balance sheet (₹ cr, 31 March)

Item	FY22	FY23	FY24	FY25	FY26	Jun-26
Equity capital	1,611	1,611	1,611	1,611	1,611	1,611
Reserves (+ ESOP o/s)	15,770	17,973	19,999	22,994	23,964	24,560
Net worth	17,381	19,584	21,610	24,605	25,575	26,170
Deposits	96,331	1,08,065	1,35,202	1,51,212	1,66,344	1,64,886
Deposit growth	+23.5%	+12.2%	+25.1%	+11.8%	+10.0%	+6.6% YoY
Borrowings	19,921	24,711	16,372	11,138	14,303	13,380
Other liabilities & provisions	5,234	3,677	4,659	4,520	4,902	4,980
Total balance sheet	1,38,867	1,56,037	1,77,842	1,91,476	2,11,124	2,09,410
Investments	29,079	32,366	29,288	40,712	38,668	38,310
Net advances	n.a.	n.a.	n.a.	n.a.	1,50,100	1,51,680
Gross advances (incl. PTC)	n.a.	n.a.	~1,24,500 Est.	1,36,995	1,54,233	1,55,556
Fixed assets + CWIP	588	855	1,173	1,180	1,401	1,510
Book value / share (₹)	107.9	121.6	134.1	152.7	158.8	162.4
CD ratio (net adv / deposits) Est.	n.a.	n.a.	n.a.	~91% (gross)	90%	92%

Sources: Screener.in standalone balance sheet (FY22–FY26); Q1 FY27 deck slide 32 (Jun-26, ₹ bn converted); press releases (gross advances). FY24 gross advances back-solved from 10% FY25 growth. FY25 CD ratio from gross advances. Management cites "CD ratio of 94%" on its own definition (Q1 FY27 call). Marketsmojo quotes 94.27% at Mar-26.

2. Asset quality: the core banking table

₹ bn	FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	FY26	Q1 FY27
Opening GNPA	47.8	64.4	66.2	70.2	48.0	64.4	50.2
+ Fresh slippages	53.7	15.5	15.9	13.1	10.3	54.8	10.8
− Recoveries & upgrades	13.1	3.2	3.2	9.2	3.6	19.3	4.5
− Technical write-offs	24.1	10.5	8.7	0.1	4.5	23.7	6.0
− NPA sale to ARC	–	–	–	26.0	–	26.0	1.7
Closing GNPA	64.4	66.2	70.2	48.0	50.2	50.2	48.8
Provisions held	47.4	48.8	51.7	34.0	35.7	35.7	34.7
Net NPA	16.9	17.4	18.4	14.0	14.5	14.5	14.1
GNPA %	4.7%	5.0%	5.0%	3.3%	3.3%	3.3%	3.1%
NNPA %	1.3%	1.4%	1.4%	1.0%	1.0%	1.0%	0.9%
PCR (reported)	73.7%	73.7%	73.7%	70.8%	71.1%	71.1%	71.1%
PCR incl. SR provisions	74.5%	74.3%	74.2%	74.2%	74.2%	74.2%	74.3%
PCR incl. technical write-offs	86.5%	87.3%	87.6%	84.3%	84.9%	84.9%	85.9%
Credit cost (incl. standard)	2.9%	3.5%	3.4%	3.3%	2.0%	3.0%	1.8%
Slippage ratio (ann., on avg adv.) Est.	~4.1%	4.7%	4.8%	3.8%	2.9%	~4.0%	2.9%

Source: Q1 FY27 deck slide 21 (rendered and verified). Recoveries include ARC cash. EEB slippages: Q2 FY26 ₹1,118 cr, Q3 ₹942 cr, Q4 ₹690 cr, Q1 FY27 ₹604 cr. Bank-wide: ₹1,590, ₹1,314, ₹1,028, ₹1,079 cr.

EEB stress pool & early-warning (SMA) book (₹ bn)

EEB	Jun-25	Mar-26	Jun-26	YoY
SMA-1	5.3	4.4	4.6	−13%
SMA-2	4.8	4.2	4.2	−13%
NPA	47.6	31.1	31.0	−35%
Stress pool	57.7	39.7	39.8	−31%
Total EEB provisions	44.1	30.8	30.0	−32%
Coverage of stress pool	76.4%	77.6%	75.4%
0–90 DPD % of EEB	n.a.	3.1%	3.5%

SMA-0 rose in Q1 FY27 on April holidays and the West Bengal election. The EEB 0–90 DPD pool was ₹2,310 cr (4.6%) at Dec-25. Additional standard-asset provision is ₹490 cr (≈1% of EEB). Borrower-paying profile at Jun-26: full-paying 97.1% of receivables, partial 2.5%, non-paying 0.4%.

Write-offs & ARC sales: the clean-up ledger

Period	Action	₹ cr
Q4 FY24	Technical write-off (COVID-vintage EEB)	3,852
FY25	Technical write-offs	2,410
FY26	Technical write-offs (EEB ₹952 cr in Q1, ₹799 cr in Q2)	2,370
Q3 FY26	NPA pool to ARC: ₹3,165 cr at 18% (₹570 cr). 53% cash (₹303 cr), 47% SRs (₹266 cr)	3,165
Q3 FY26	Written-off pool to Phoenix ARC: ₹3,707 cr at ~9% (₹332 cr). Cash ₹126 cr, SRs ₹206 cr (62%)	3,707
Q1 FY27	Housing NPA to ARC (₹120 cr cash) + technical write-off ₹597 cr	291 + 597
Cumulative since Q4 FY24 Est.	Write-offs + ARC (gross; overlaps, because the ₹3,707 cr pool was already written off)	~16,400

Net book value of all SRs was NIL at 31 Mar 2026 (100% provided). Outstanding SRs (CRISIL): RR2 ₹266 cr, RR3 ₹206 cr, RR4 ₹136 cr, unrated ₹1 cr. A Q3 FY26 shareholder noted that post-IPO provisions exceeded ₹36,000 cr against recoveries of ~₹7,000–8,000 cr.

3. Capital, liquidity and funding

Metric	Mar-24	Mar-25	Mar-26	Jun-26	Sep-26 (prov.)
CRAR (incl. profit)	18.3%	18.7%	18.0%	18.2%	n.a.
Tier-1 / CET1	17.2%	17.9%	17.3%	17.5%	n.a.
Regulatory minimum CRAR	11.5%. No AT1 or Tier-2 bonds raised (FY26 AR); Tier-II ~0.7% of RWA (likely eligible provisions)
LCR	172%	n.a.	131.8%	~140% (mgmt)	137.9%
CASA ratio	37.1%	31.4%	29.3%	29.4%	26.7%
Retail deposits % total	69%	69%	73.7%	74.0%	72.7%
Bulk % total deposits	n.a.	31%	26%	26%	27.3%
Yield / cost of funds / spread	n.a.	13.5% / 7.1% / 6.4% (FY25)	12.2% / 6.8% / 5.4% (FY26)	12.0% / 6.4% / 5.6% (Q1)	n.a.

Yield / cost of funds (excl. capital) / spread from deck slide 28 (rendered). Q1 FY26 was 12.7% / 7.0% / 5.7%; Q4 FY26 12.0% / 6.5% / 5.5%. CRAR was 19.4% at Jun-25. Loan pricing (Apr 2025): ~55% fixed, ~41% repo-linked EBLR, ~4–5% MCLR. The FY25 risk-weight episode: in Q1 FY25 the bank conservatively moved EEB risk weight to 125% (−362 bp CRAR to 15.7%). RBI's Feb 2025 clarification restored 75%/100%.

4. Credit ratings

Agency	Instrument	Rating	Latest action
CRISIL	NCDs (erstwhile GRUH; ₹1,295 cr rated)	CRISIL AA-/Stable	Reaffirmed, 28 Sep 2026
CRISIL	Certificates of deposit (₹6,000 cr)	CRISIL A1+	Reaffirmed, 28 Sep 2026
ICRA	NCDs (₹75 cr)	[ICRA] AA- (Stable)	Reaffirmed, 25 Sep 2026
ICRA	CDs (₹3,000 cr)	[ICRA] A1+	Reaffirmed, 25 Sep 2026

No covenant breaches or restructuring of the bank's own liabilities. The borrowing book (₹13,380 cr at Jun-26, up 119% YoY) is mainly refinance and CDs; a lender-wise split is not disclosed.

5. Equity dilution / share-count history

Date	Event	Shares (cr)
Mar 2015	Pre-launch capital	50.1
Mar 2016	Capital raised for launch	109.5
Mar 2018	IPO (fresh issue ₹3,662 cr + OFS ₹811 cr; band ₹370–375)	119.3
17 Oct 2019	GRUH amalgamation: share issue to GRUH holders (+35%)	161.0
Mar 2026	ESOP allotments only since 2020	161.10
Oct 2026	ESOP Series 1 allotment (8 Oct)	~161.1

ESOP overhang: the pool was raised from 5.48 cr to 8.05 cr options (postal ballot, Jan–Mar 2026), about 5.0% of equity. ESOP reserve is ₹320 cr. No QIP or preferential issue since listing.

Capital plan (new, 25 Jun 2026): the board reviewed a new capital plan. It found the bank currently well capitalised but advised management to initiate discussions for future capital raising to support projected growth. No size, instrument (equity, AT1 or Tier-2) or timeline was disclosed. Fact On the arithmetic, CET1 of 17.5% covers ~3 years of ~15% loan growth without new equity. An equity raise would therefore be growth- or opportunity-driven rather than forced, but any issue below book would dilute BVPS. Analyst View

Share count is flat at ~161.1 cr, so the promoter's falling percentage is from selling, not dilution (Tab 7).

Key balance-sheet risks:

Funding: CASA down to 26.7%, CD ratio 92–94%, deposit base 52% East.
Unsecured concentration: EEB still 34% of loans at 5.9% GNPA.
Housing NPAs: ₹800–980 cr, a 2.3–2.8% ratio, high for mortgages.
Reported PCR (71%) is below its pre-ARC level (73.7%); coverage relies on SR provisions and write-off accounting.
Wholesale growth of 38% in an untested book.

Management, Promoters & Governance

1. Promoter: Bandhan group structure

Bandhan Financial Services Ltd (BFSL)Original NBFC-MFI (2006). Its microfinance business moved into the bank in 2015. Now the group parent.

Bandhan Financial Holdings Ltd (BFHL)Wholly-owned by BFSL. The Non-Operative Financial Holding Company (NOFHC) required under RBI's 2013 licensing guidelines. Holds the bank stake.

Bandhan Bank Ltd37.53% held by BFHL (Jun-26). No subsidiaries, associates or JVs (FY26 annual report).

Sister promoter-group entitiesBandhan AMC Ltd and Bandhan Mutual Fund Trustee (ex-IDFC AMC). Bandhan Life Insurance. Bandhan Konnagar (non-profit). Bandhan Technologies (India/UK/USA/Dubai). Quadra medical/diagnostic companies. Novus Global Horizon; Selimbong Tea Co (acquired by Novus on 23 Jun 2026).

Founder, Chandra Shekhar Ghosh (b. 1960, Tripura). MSc Statistics. Worked at BRAC (Bangladesh), then Village Welfare Society. Founded Bandhan-Konnagar in 2001. MD & CEO of the bank from 2015 to 9 Jul 2024. Senior Ashoka Fellow (2007); ET Entrepreneur of the Year (2014); Business Standard Banker of the Year (2018–19). Since retiring he has chaired the Bandhan group (AMC, Life, Technologies), per Wikipedia. On the Q4 FY24 call he said he would "take a strategic role at the holding company". Fact

2. CEO transition timeline

Date	Event
23 Aug 2015 – 9 Jul 2024	C.S. Ghosh, founder MD & CEO. RBI barred new branches without approval and froze CEO remuneration in Sep 2018, because the promoter had not cut its stake to 40% within 3 years of commencement Fact, per Wikipedia (sentence flagged there). The GRUH amalgamation (effective 17 Oct 2019) was the main fix.
5 Apr 2024	Ghosh announces retirement at the end of his term (9 Jul 2024). The board appoints a search firm.
24 Jun 2024	RBI appoints Arun Kumar Singh (35 years at RBI) as additional director on the board. Term extended to 23 Jun 2027.
10 Jul 2024	Ratan Kumar Kesh (ED & COO; ex-Axis Bank) becomes interim MD & CEO with RBI approval, for 3 months, later extended.
By 25 Oct 2024	RBI approves Partha Pratim Sengupta as MD & CEO for 3 years. The board approves his appointment on 25 Oct 2024.
1 Nov 2024	Sengupta takes charge. Ex-SBI Deputy MD & Chief Credit Officer; ex-MD & CEO of Indian Overseas Bank. Term ends ~31 Oct 2027.
25 Jun 2026	Board appoints Debasish Panda (IAS 1987; ex-Chairman IRDAI) as non-executive chairman and independent director for 3 years from 5 Jul 2026, subject to RBI approval, succeeding Dr Anup Kumar Sinha (tenure ended 4 Jul 2026). At the same meeting the board reviewed a new capital plan. It found the bank currently well capitalised but advised management to initiate discussions for future capital raising to fund projected growth. No amount, instrument or timeline was disclosed. Fact (board outcome per FilingReader summary; primary filing not opened)

3. Board of directors (Jul 2026)

Name	Role	Category	Background
Debasish Panda	Chairman	Non-exec, independent	IAS 1987; ex-Chairman IRDAI; ex-director on the boards of RBI, SBI, BoB and LIC
Partha Pratim Sengupta	MD & CEO	Executive	~40 yrs banking; SBI DMD & CCO; IOB MD & CEO
Rajinder Kumar Babbar	ED & Chief Business Officer	Executive	23+ yrs at HDFC Bank (transport and infra finance, rural, retail liabilities)
Ratan Kumar Kesh	ED & Chief Operating Officer	Executive	~30 yrs; ex-head retail ops and service, Axis Bank; interim CEO in 2024. Re-appointed by postal ballot (Mar 2026)
Debashish Mukherjee	Director	Independent	Ex-ED Canara Bank; PNB, United Bank
Gauri Prosad Sarma	Director	Independent	37 yrs IT; ex-CGM (Operations), PNB
N V P Tendulkar	Director	Independent	Ex-ED Finance, Hewlett Packard India
Subrata Dutta Gupta	Director	Independent	Retired Principal Financial Officer, IFC; mortgage finance in Asia
Suhail Chander	Director	Independent	Ex-head of corporate & institutional banking, IndusInd (retired 2020)
Veni Thapar	Director	Independent	CA & CMA, 29+ yrs audit; ex-ID Bank of India
Vijay N Bhatt	Director	Independent	Ex-senior partner, BSR & Co. (KPMG network)
Avijit Mukerji	Director	Non-exec, BFHL nominee	CA; ex-senior partner, Price Waterhouse
Arun Kumar Singh	Additional Director	RBI nominee	35 yrs RBI: regulation, supervision, enforcement

13 directors: 8 independent (incl. the chair), 3 executive, 1 promoter (BFHL) nominee, 1 RBI nominee Est.. Divya Krishnan (BFHL nominee) ceased on 28 Aug 2025 after BFHL withdrew her nomination.

4. Key management and the churn log

Role	Current	Change / note
CFO	Vinay Jain (interim)	Rajeev Mantri (ex-CFO Citi India) resigned; last day 25 Sep 2026
Head – EEB	Surajit Roy Chowdhury (from 30 Jun 2026)	Vishal Wadhwa resigned (last day 29 Jun 2026; "personal career advancement")
Chief Audit Executive	Sandip Kumar Bubna (interim, from 27 Apr 2026)	Navin Sharma appointed 19 May 2025, left 13 Apr 2026; Mayank Ghoshal was interim before him
Chief of Internal Vigilance	Prakash E (interim, from 24 Feb 2026)	P Ramaswamy resigned (23 Feb 2026); CEO cited family reasons
Chief Risk Officer	Biju E Punnachalil (from 14 Jul 2025)	Ex-CRO South Indian Bank; replaced interim CRO Sundeep Bhan
Head – Consumer Lending & Mortgages	Housing vertical restructured into 3	Santosh G Nair resigned 6 Sep 2025
National Collections	Sujoy Roy (from 28 Apr 2026)	New role covering all lending
Others	Satish Kumar (Wholesale; ex-Kotak); Hirak Joshi (Retail Assets; ex-Ujjivan SFB); Suresh Chandran (Branch Banking; ex-IndusInd); Arindam Sarkar (Treasury; ex-Axis); Pinaki Halder (CIO); Amitava Goswami (Compliance); Indranil Banerjee (CS); Siddhartha Sanyal (Chief Economist)

5. Shareholding pattern

%	Jun-24	Sep-24	Dec-24	Mar-25	Jun-25	Sep-25	Dec-25	Mar-26	Jun-26
Promoter & group	39.98	39.98	39.98	39.98	40.92*	40.29	39.74	38.98	37.54
FIIs	28.25	26.73	23.23	22.73	24.34	23.44	22.32	22.07	18.64
DIIs	15.06	16.33	15.41	16.36	16.52	17.82	18.76	22.33	27.47
Government	0.07	0.07	0.07	0.07	0.07	0.07	0.07	0.07	0.07
Public	16.63	16.89	21.32	20.86	18.14	18.39	19.11	16.55	16.26
No. of shareholders (lakh)	7.59	7.49	8.61	8.59	7.88	7.69	7.67	7.11	6.64

Source: Screener.in. *From Jun-25 the promoter figure includes Bandhan Mutual Fund's holding, following RBI's letter of 15 Apr 2025 treating Bandhan MF as promoter group and aggregating its holding with BFHL's (FY26 AR). At Mar-26: BFHL 38.86% + Bandhan MF 0.13% = 38.98%. Jun-26 detail (SHP): mutual funds 19.65%, insurers 5.66%, FPI Cat-I 16.9%.

Ownership trend (%)

Holders ≥1% (31 Mar 2026, FY26 AR)

Holder	%
Bandhan Financial Holdings (promoter)	38.86
SBI Balanced Advantage Fund	4.26
Caladium Investment Pte (GIC)	3.74
LIC of India	3.69
Kotak Multicap Fund	3.12
Government Pension Fund Global (Norway)	1.95
ICICI Pru Equity & Debt Fund	1.91
HDFC Large and Mid Cap Fund	1.61
Vontobel MTX Sustainable EM Leaders	1.61
MFS Emerging Markets Equity	1.43
BlackRock EM Equity Strategies	1.27
PI Opportunities AIF V LLP	1.17

6. Promoter stake: selling, pledge and RBI licensing conditions

Date	BFHL shares (cr)	% of equity	Comment
Mar-25	~64.4 Est.	39.98	Flat at ~40% from 2020 to Mar-25
Mar-26	62.60	38.86	~1.8 cr shares sold in FY26 Est.
Jun-26	60.47	37.53	2.13 cr shares sold in Q1 FY27 (~1.3% of equity)

Pledge: nil. No non-disposal undertakings or other encumbrances (Jun-26 SHP; FY26 AR). Promoter shares are not locked in.
Dilution vs selling: share count has been ~161.1 cr since FY20. The decline is secondary sales by BFHL, not dilution. The block or bulk-deal counterparties were not identified in the sources accessed.
Licensing framework (verified against RBI's Nov 2021 press release on the IWG report and contemporaneous press):
- Under the 2013 guidelines, the NOFHC had to bring its holding down to 40% within 3 years of commencement, then to 20% and finally to a long-run cap of 15%. Fact
- In Nov 2021 RBI accepted its Internal Working Group's recommendation to raise the long-run (15-year) promoter cap from 15% to 26%. For Bandhan, 15 years from commencement is ~Aug 2030 Est.. RBI also allowed banks under the NOFHC structure to exit it only if they have no other group entities. Fact
- Bandhan's group now has an AMC and a life insurer, so the NOFHC structure likely stays. Analyst View
- Bandhan's intermediate dilution schedule as agreed with RBI is not publicly disclosed in the sources accessed.
2018 episode: in Sep 2018 RBI restricted branch expansion and froze CEO pay over the missed 40% dilution (promoter then ~82%). The GRUH amalgamation (swap 568 Bandhan shares per 1,000 GRUH shares; effective 17 Oct 2019) cut the promoter mechanically to ~61%. By letter of 25 Feb 2020, RBI lifted the branch-expansion restriction, subject to ≥25% of new outlets each year being in unbanked rural centres, while noting the bank was still not compliant on dilution (promoter ~61–62%). Fact (Business Standard / PTI, 25–26 Feb 2020). How BFHL went from ~61% to ~40% during 2020 is not traced in the sources accessed.

7. Related-party transactions (FY26, ₹ cr)

Counterparty type	Nature	FY26	FY25
BFHL / BFSL (promoter)	Deposits held with the bank (year-end; max during year)	531.1 (636.9)	514.9 (784.7)
Promoter group (Bandhan Konnagar, Bandhan AMC etc.)	Deposits (year-end; max)	25.8 (327.2)	326.0 (357.1)
All related parties	Total deposits (year-end)	561.3	849.0
BFHL (promoter)	Dividend paid	96.6	96.6
Promoter / promoter group	Interest paid on deposits	41.9 / 14.1	50.2 / 26.3
Promoter group	CSR spend (via Bandhan Konnagar)	13.0	21.8
Promoter group	Training expense	5.0	11.1
KMP	Remuneration	15.4	13.7

Source: FY26 AR note 18.12. FY26 columns re-aggregated from a jumbled text extraction; totals reconcile (531.1+25.8+3.5+0.9 = 561.3) Est.. Bandhan AMC is disclosed as "entity in which promoter entity exercises control". Volumes are immaterial against a ₹2.1 lakh cr balance sheet. Bandhan Life is a distribution partner (third-party income); the commission amount is not separately disclosed.

8. Bandhan AMC / IDFC Mutual Fund and Bandhan Life (promoter group, NOT bank subsidiaries)

BFHL led a consortium that acquired IDFC AMC and IDFC MF Trustee from IDFC Ltd. They were renamed Bandhan AMC / Bandhan Mutual Fund.

Deal terms: ₹4,500 cr on a fully diluted basis (subject to closing adjustments), announced 6 Apr 2022. BFHL ~60%, GIC (Lathe Investment) ~20%, ChrysCapital affiliates ~20%. CCI cleared it in Aug 2022 and SEBI in Nov 2022, and it completed in early 2023. Fact (Business Standard, Apr and Nov 2022; exact closing date not re-verified)
BFHL also acquired Aegon Life Insurance, renamed Bandhan Life Insurance. Aegon announced its exit in Jul 2023, and the sale to BFHL closed on 23 Feb 2024 after IRDAI approval. Fact (Aegon N.V. newsroom, 2024). The consideration was not disclosed in the sources accessed.

Relevance to bank shareholders:

These entities generate no consolidated earnings for the bank.
They sit beside the bank under the same promoter, so promoter capital and attention are shared.
RBI's April 2025 letter makes Bandhan MF's holding in the bank count toward promoter aggregate holding.
The bank distributes Bandhan Life and Bandhan MF products: an arm's-length RPT risk that is small today.
The group is building non-bank businesses while BFHL is selling bank shares. Whether sale proceeds fund the AMC or life insurer is not disclosed. Analyst View

8a. Acquisition track record: GRUH Finance

Item	Detail
What	GRUH Finance Ltd, an HDFC-sponsored affordable-housing finance company, amalgamated into Bandhan Bank. The AR milestone for 2019 reads: "Acquired HDFC Limited's stake in GRUH Finance". Fact
When	Announced 7 Jan 2019; effective 17 Oct 2019 (FY26 AR, IEPF section). Fact
Price / structure	All-stock: 568 Bandhan shares for every 1,000 GRUH shares, about a 7% discount to GRUH's close on 7 Jan 2019. GRUH fell as much as 14% on the announcement. Fact (Business Standard, 7–8 Jan 2019). Bandhan's equity went from 119.3 cr to 161.0 cr shares, i.e. ~41.7 cr new shares (+35%) Est.. HDFC Ltd became a shareholder (9.89% at Dec 2021, Wikipedia).
Strategic rationale	Instant secured mortgage book and a West/Gujarat footprint. It also diluted the promoter mechanically, helping meet RBI's ownership condition after the Sep 2018 restrictions.
Is it working? Analyst View	Partly. Housing is ₹34,540 cr (22.2% of loans), growing only 5.7% YoY and −0.7% QoQ. GNPA ₹800 cr (2.3%), high for mortgages, after peaking at ₹980 cr in Mar-26. ₹291 cr of housing NPAs were sold to an ARC in Q1 FY27. The vertical was restructured into 3, and the head of consumer lending and mortgages resigned in Sep 2025. Housing finance centres are being converted into branches. The GRUH-era NCDs (₹1,295 cr rated, CRISIL/ICRA AA-) remain on the books. The deal achieved its diversification and ownership aims, but has not become the growth engine of the secured book; wholesale and retail have.

8b. CGFMU guarantee and NCGTC claims: full history

Date	Event	₹ cr
FY21 (COVID)	EEB loans insured under the Credit Guarantee Fund for Micro Units (CGFMU), administered by NCGTC	~20,807 pool
Dec 2022	Tranche-1 claim received	916–917
FY24	Tranche-2 claim filed for ₹1,290 cr. The scheme caps claims at 15% of the insured amount (~₹3,121 cr on ₹20,807 cr Est.). Fact (bank disclosures as reported by Outlook Business / Moneylife)	1,290
Jan 2024	NCGTC decides to audit the FY21 CGFMU claims (a 20–30 lakh borrower portfolio). The bank stressed it was not a regulator-initiated audit of the bank.	–
ECLGS (parallel)	The bank disbursed >₹1,948 cr under ECLGS from FY21. Of an ECLGS claim of ~₹508 cr, ₹161 cr was settled, and ~₹347 cr was held pending a forensic audit (as reported). Current status not re-verified. Fact	508 claim
Q4 FY24	Technical write-off of ₹3,852 cr, of which the CGFMU-covered pool was ₹3,053 cr. Q4 PAT fell to ₹55 cr	3,053
10 Oct 2024	Audit complete. ~85% of the insured pool had been repaid by customers. NCGTC assesses the total payout at ₹1,231 cr: ₹315 cr still due plus ₹228 cr of tranche-1 recoveries held, ~₹543 cr to P&L	1,231 total
Q3 FY25	Booked in other income (with ₹52 cr from the Assam relief scheme)	538
FY26	Net NCGTC receipts under ECLGS (Emergency Credit Line Guarantee Scheme), held as a liability, applied toward writing off the covered portfolio (FY26 AR, Schedule 12 note)	323.44
28 Apr 2026	CFO: "We don't have any CGFMU coverage for EEB. That option is open for us, so we'll be evaluating." The original cover applied to the FY2020-21 loan vintage only. The residual covered NPA pool was fully provided and technically written off by 31 Mar 2024. A formal expiry date for the cover is not disclosed in the sources accessed	–

Implications Analyst View:

The guarantee helped in FY23–FY25 (₹1,231 cr in total), but the dispute and audit created a 2-year overhang and a large write-off.
The EEB book now carries no sovereign-backed loss cover.
Re-entering a guarantee scheme would reduce ECL provisions under RBI's new framework (raised on the Q4 FY26 call). That is an upside lever for credit cost.

9. Auditors, regulatory actions, litigation

Item	Detail
Joint statutory auditors	V. Sankar Aiyar & Co. (FRN 109208W; 10th AGM Aug 2024 to 13th AGM 2027) and V. Singhi & Associates (FRN 311017E; 11th AGM Aug 2025 to 14th AGM 2028). RBI-approved. Q1 FY27 limited review signed by Karthik Srinivasan.
Audit opinion	No qualification, reservation or adverse remark (FY26 Directors' Report). Secretarial auditor: Makarand M. Joshi & Co.
RBI penalties	₹44.70 lakh (order 26 Aug 2025; SCN 3 Jul 2025): BR Act s.10(1)(b)(ii) and IRAC-automation directions, from the ISE of Aug–Nov 2024 on 31-Mar-24 data. ₹41.80 lakh (21 Apr 2026): s.20(1)(b)(iii) and KYC directions. FY26 RBI penalties totalled ₹0.88 cr, incl. currency-chest and incognito-visit fines.
Tax	GST orders: ₹1.09 cr (Mumbai, FY19–23, s.74) and ₹16.9 lakh (Gujarat, FY22, s.73); both under appeal.
Contingent: claims not acknowledged as debts	₹402 cr (Mar-26) vs ₹281 cr (Mar-25).
SEBI actions	None found in the sources accessed. "No penalties or strictures" by SEBI or exchanges in the last 3 years (CG report).
Supervisory	RBI nominee director since Jun 2024. Management (Oct 2025) said "the major regulatory issues ... have been already addressed"; no PSL-classification issues in the supervisory report.

Governance red flags Analyst View:

High senior churn: CFO, EEB head, two CAEs and the CIV, several of them control functions, in 18 months.
RBI-nominated director, unusual for a private bank of this size.
Guidance slippage: exit-FY27 RoA cut to 1.2–1.4%; NIM target withdrawn; deposit commitments reversed.
Steady promoter selling.
The Q2 FY26 accounting change in overdue recognition and the FY24 NCGTC audit of the CGFMU claim. Total payout was assessed at ₹1,231 cr. Tranche-1 (₹916 cr) had already been received, and the tranche-2 claim alone was ₹1,290 cr, so only ~₹315 cr of the second claim was paid Est..

Mitigants: experienced, largely independent board chaired by an ex-IRDAI chairman; clean audit opinions; no pledge.

Supply Chain: Bank Adaptation

For a bank, the "supply chain" is the funding chain upstream (deposits, wholesale funds, capital, guarantees, and the vendors and partners that originate, collect and process) and the credit chain downstream (the borrowers and end-economies that depend on Bandhan's credit). The physical inputs a manufacturer would show here are replaced by money, data, regulation and people.

↑ Upstream: what Bandhan depends on

Input	Source / named counterparties	Size / dependence	Concentration / single-source risk	Pass-through ability
Retail deposits (CASA + retail TD)	~3.2 cr customers via 1,988 branches; 41% of deposits from West Bengal, 52% from the East	₹1,25,471 cr (72.7%) at Sep-26	Regional: East-heavy; CASA at a cycle low of 26.7%	Weak: SA costs +20–25 bp QoQ in Q1–Q2 FY27 "despite no increase in repo"
Bulk deposits & CDs	Corporates, institutions, other banks; CDs rated A1+ (₹6,000 cr programme)	₹47,218 cr (27.3%) at Sep-26, +10% QoQ	~86% non-callable (Jun-26). Rate-sensitive	Low: price-taker
Borrowings	Refinance (NABARD/SIDBI-type, not itemised), interbank; GRUH-legacy NCDs	₹13,380 cr (Jun-26, +119% YoY)	Lender split not disclosed	–
Equity capital	BFHL (37.5%) and institutional investors; internal accruals	Net worth ₹26,170 cr; CET1 17.5%	No arithmetic need for new capital for 3+ years Est., but the board asked management in Jun 2026 to begin capital-raising discussions	–
Credit guarantees	NCGTC: CGFMU (micro-units) and ECLGS	CGFMU-insured pool ~₹20,807 cr (FY21 vintage); claims settled at ₹1,231 cr in total. No CGFMU cover on the EEB book today (Q4 FY26 call)	No current cover; expiry/tenor not disclosed in the sources accessed. "That option is open for us, so we'll be evaluating"	–
Stressed-asset buyers	ARCs incl. Phoenix ARC (written-off pool, Q3 FY26); unnamed ARC(s) for the NPA and housing pools	₹6,872 cr sold in Q3 FY26; ₹291 cr in Q1 FY27	Few buyers; low recovery (9–18%)	–
Origination partners	DSAs and connectors for retail and housing; branch channel rising (>₹900 cr/quarter)	Material for secured retail (not quantified)	DSA commissions flagged by analysts as a cost drag	–
Collections	In-house field staff (EEB) plus external collection agencies (non-EEB)	74,744 employees in total	Field-force dependency in EEB; political/election disruptions	–
Technology	New CBS (2023); LOS build in progress; cloud, DC/DR, multinational hardware vendors (not named)	IT ~8% of opex (9.5% incl. depreciation); +65% YoY	Vendor price hikes linked to Middle-East-war chip and energy shocks (Q1 FY27 call)	Cannot pass on
Credit data / industry rails	Credit bureaus; MFIN (SRO) guardrails; Sa-Dhan	Every EEB loan checked against the guardrails	Industry-wide rule changes alter the addressable market	–
PSL compliance	PSLC market (buys certificates when short)	~40% of EEB qualifies as PSL-eligible; PSLC cost cited as an opex item	–	–
Regulator	RBI (licensing, supervision, risk weights, ECL transition); state governments (MFI ordinances)	–	The Karnataka MFI ordinance (early 2025) and Assam relief-scheme receipts (₹52 cr, Q3 FY25) show state-level policy risk	–

↓ Downstream: who depends on Bandhan

Customer group	Who	Book (Jun-26)	What Bandhan's credit funds	Stickiness
Micro-entrepreneur women (EEB group)	12.9 mn active borrowers, mainly WB, Assam, Bihar, Odisha, MP; rural 37% / semi-urban 33% of outlets	₹35,220 cr	Livestock, petty trade, tailoring, food stalls, agri-allied	High: 12–24 month cycles with renewals; ~60% "Bandhan-only" borrowers
Graduated micro and small businesses (SBAL)	Individual small-business and agri borrowers	₹17,420 cr	Working capital, small capex	Medium
Home buyers (ex-GRUH)	56.5% salaried, 42% self-employed; affordable housing, Gujarat/West heritage	₹34,540 cr	Homes, LAP, construction	High (long tenor), but balance-transfer risk
Retail borrowers	CV/CE operators, car buyers, gold-loan and personal-loan customers	₹16,100 cr	Vehicles, consumption	Low–medium; commoditised
Corporates, FIs, NBFCs, healthcare and education	FIG book 96% A- or above; CBG 76% BBB+ or above	₹51,280 cr	Term loans, WC; PTC purchases from NBFCs	Low: consortium, price-driven

Customer concentration: very granular at the retail end; EEB average ticket ~₹40,800 Est. (₹52,641 cr ÷ 12.9 mn borrowers). Top-20 borrower exposure and large-exposure data are in Basel III Pillar 3 disclosures, which were not retrieved in this run. Wholesale (33%) is the only place where single-name concentration can matter.

Value-chain map

1. SaversEast-India households (41% WB), retail TD, CASA, bulk/CDs

2. Bandhan BankLiquidity & ALM; CRAR 18.2%; underwriting (MFIN guardrails + new EEB model, LOS)

3. Origination4,400 BUs (EEB), 1,988 branches, DSAs, RMs

4. BorrowersEEB women · home buyers · CV/auto · corporates and FIs

5. Collections & recoveryField staff, agencies, ARCs (Phoenix), write-off recoveries

Where pricing power sits Analyst View:

EEB: Bandhan has real pricing power. It raised MFI rates 100 bp from Feb 2026 without losing borrowers (12.4 mn back to 12.9 mn), and its 24-year field presence in WB and Assam is hard to replicate. That power is capped by political tolerance and RBI's margin-cap and fairness norms.
Secured retail, housing and wholesale: it is a price-taker. Management admits consortium pricing "cannot be entirely passed on".
Funding: depositors and competing banks hold the power ("even bigger stable banks are also increasing the interest rates").

Net: the business mix is shifting from where Bandhan has pricing power toward where it does not. That is the structural reason NIM fell 120 bp in two years.

Competitive Position

Bandhan competes on two fronts:

Microfinance, where it is the largest single lender. Its EEB book is ₹52,641 cr, against an industry portfolio that fell from ₹4.24 lakh cr (Mar-24) to ₹3.67 lakh cr (May-25), per Bandhan's EEB head. That implies a ~14% share Est.. Management says its share rose further in FY26 as the industry contracted faster.
Mid-size private and small-finance banks on deposits and secured retail.

1. Peer comparison (12 Oct 2026, Screener.in, standalone)

Bank	CMP ₹	Mkt cap ₹ cr	P/E	P/B Est.	RoE	GNPA Jun-26	NNPA	FY26 PAT ₹ cr	Q1 FY27 PAT	3-yr income CAGR	Moat / angle
Bandhan Bank	159	25,593	18.9	1.00	4.9%	3.15%	0.93%	1,224	502	11%	#1 microfinance; East deposit franchise
AU Small Finance Bank	973	73,134	25.6	3.64	14.2%	2.10%	0.76%	2,641	796	31%	Secured vehicle/SBL; high-growth SFB
IDFC First Bank	79.1	68,207	30.4	1.41	3.8%	1.51%	0.44%	1,636	1,075	21%	Retail-led, strong CASA build
RBL Bank	421	65,421	74.7	1.57	5.1%	1.30%	0.37%	822	254	14%	Cards and MFI (JLG) exposure
Ujjivan SFB	62.9	12,256	13.5	1.79	10.8%	2.16%	0.34%	693	317	19%	MFI-heritage SFB, diversifying
CreditAccess Grameen (NBFC-MFI)	1,284	20,613	17.0	2.62	10.5%	2.18%	0.76%	778	493	20%	Largest NBFC-MFI; Karnataka/Maharashtra/TN heavy

P/B = CMP ÷ Screener book value. RoE is the Screener headline (latest FY or TTM). NIM, CASA and EV/EBITDA are not meaningful or not retrieved for all peers. EV/EBITDA is not applicable to banks. Peer data were not cross-checked against peer filings in this run.

Read-across Analyst View:

Bandhan is the cheapest on P/B (1.0x vs 1.4–3.6x for peers), with peer-level asset quality after the clean-up but the highest GNPA in the group.
AU commands 3.6x on 14% RoE plus 30% growth, the model Bandhan 2.0 aspires to.
IDFC First and RBL trade at 1.4–1.6x on similar or lower RoE because the market is paying for deposit-franchise and strategic optionality.
CreditAccess at 2.6x shows that pure microfinance is not uninvestable when RoE recovers.
Conclusion: Bandhan's discount is mostly about governance, guidance credibility, East concentration and CASA, not about the MFI asset class itself.

2. Strengths and weaknesses vs each peer

Vs.	Bandhan stronger	Bandhan weaker
AU SFB	Capital (CET1 17.5%); MFI scale; rural reach	Growth, RoE, secured-lending expertise, west/north presence, CASA momentum
IDFC First	Higher NIM (6.2%); capital; lower opex/income in the past	Retail deposit engine; urban affluent franchise; product breadth
RBL	MFI depth; NIM; cleaner unsecured cards exposure	Corporate and transaction-banking capability; geographic balance
Ujjivan SFB	Scale (3x+ book); capital; East franchise	Ujjivan's pan-India MFI spread; higher RoE in FY26
CreditAccess	Deposit funding (an NBFC-MFI relies on borrowings); PSL advantages	Focus, underwriting record, southern presence, RoE

3. Industry structure and Porter's five forces

Microfinance industry (2024–26):

Over-leverage built up in FY23–24: multiple lenders per borrower and rising ticket sizes.
The first MFIN guardrails (2024) and Guardrails 2.0 (effective 1–2 Apr 2025): cap of 3 lenders (down from 4), ₹2 lakh total unsecured microfinance exposure, no lending to 60+ DPD borrowers. Bandhan said 16–18% of its own rejections were applicants already in industry default.
The industry portfolio fell ~13–14% YoY and active loans ~16–17%.
Stress was worst in Karnataka (2025 ordinance on coercive recovery), Tamil Nadu, Bihar, UP, MP and Maharashtra.
Bandhan's core WB and Assam markets held up better: WB CE 98.2% and Assam 99.3% in Jun-26.
RBI's 2025 change lets NBFC-MFIs hold 40% non-MFI loans (qualifying-asset criterion 60%), which may move stress into "individual loans" outside the guardrails.

Force	Intensity	Comment
Rivalry	High	Deposit wars; consortium lending; MFI share fights in guardrail-constrained pools
Buyer power (borrowers)	Med	Low in EEB; high in corporate and housing (balance transfers)
Supplier power (depositors)	High	CASA scarcity; TD repricing
Threat of substitutes	Med	NBFC-MFIs, SFBs, fintech small-ticket lenders, gold-loan NBFCs
Barriers to entry	High	Banking licence, field network, capital, RBI fit-and-proper

Moat durability Analyst View: the MFI franchise moat is durable in the East (24 years, borrower loyalty, low-cost BU network), but it is periodically breached by exogenous shocks: demonetisation, COVID, Assam and Karnataka politics, over-leverage cycles, and now the energy-cost shock. The secured businesses have no moat yet; they are a scale and cost game.

Risks & Red Flags

#	Risk	Category	Severity	Detailed explanation	Mitigant
1	Microfinance credit cycle relapse	Business	High	EEB is 33.8% of loans with 5.9% GNPA. Slippages were ₹604 cr in Q1 FY27. SMA-0 rose (0–90 DPD 3.5% vs 3.1%). Management flags the energy crisis (gas-cylinder rationing) as hitting micro-entrepreneurs who "cannot pass on" costs. History: three stress cycles in 10 years.	Guardrails 2.0; new underwriting model; 1% additional standard provision on EEB (₹1,072 cr total standard provisions); stress-pool coverage 75%; EEB capped at 33–35%
2	Geographic / political concentration (East)	Business / Macro	High	West Bengal is 24% of loans, ~42% of EEB and 41% of deposits; the East is 52% of deposits. State elections (WB, Apr 2026; Bihar, late 2025 with opposition loan-waiver rhetoric), floods/cyclones and state MFI laws and schemes (Karnataka ordinance 2025; Assam relief scheme) can freeze collections.	Non-East share of advances 62.1% and rising; WB CE 98.2%
3	NIM compression from funding costs	Financial	High	NIM fell from 7.6% (Q1 FY25) to 6.2%. CASA ratio was 26.7% at Sep-26. SA costs +20–25 bp. Bulk deposits rebounded +10% QoQ in Q2. Secured-mix dilution. Exit-FY27 NIM target of 6.5% abandoned.	Retail TD +16.8% YoY; 100 bp MFI rate hike (Feb 2026); FCNR(B) mobilisation
4	Cost inflation / negative operating leverage	Execution	Med-High	Cost-to-income 61.5% (Q1 FY27) vs 48.9% (FY25). Opex/assets 4.3% vs the 4.2% guide. Tech cost +65% YoY. Headcount flat (~75k) while the EEB book shrank ~20% from Mar-24. DSA and collection-agency costs.	Branch-led sourcing; LOS; "taper from FY28"
5	Guidance credibility	Governance	Med-High	Exit-FY27 RoA target (1.6–1.8%, set Dec 2024, reaffirmed Apr 2026) cut to 1.2–1.4% (Jul 2026). The 6.5% exit-FY27 NIM target was withdrawn. EEB recovery "expected Q2 FY26" slipped to mid-Nov 2025. FY25 credit cost long-term guide of 1.5–1.6% became 1.6–1.8%.	More conservative tone; quarterly disclosures are detailed
6	Senior-management churn and key-person risk	Governance	Med-High	CFO exit (Sep 2026, interim CFO); EEB head exit (Jun 2026); two CAE exits; CIV exit; housing head exit. CEO term ends Oct 2027.	Board-level stability (new chair, deep independent bench); CRO filled Jul 2025
7	Regulatory scrutiny	Regulatory	Med	RBI nominee director since Jun 2024 (extended to Jun 2027). Penalties for IRAC automation (Aug 2025) and KYC (Apr 2026). Risk-weight episode (FY25). Q2 FY26 accounting change on overdue recognition. ECL transition (management sees limited impact given 1% EEB buffer).	Management says "major regulatory issues ... already addressed"; strong capital
8	Promoter stake overhang and licensing dilution	Governance / Market	Med	BFHL sold ~2.13 cr shares in Q1 FY27 alone; further step-downs are required under licensing norms. The group is simultaneously funding Bandhan AMC and Bandhan Life.	Strong DII absorption (DII 27.5%); no pledge
9	Housing book quality and growth stall	Business	Med	Housing GNPA ₹800–980 cr (2.3–2.8%), high for mortgages. Book −0.7% QoQ. Vertical restructured; head left. ₹291 cr NPA sold to ARC.	Collateral; GRUH-era underwriting; new collections head
10	Unseasoned wholesale and retail growth	Business	Med	Wholesale +38% and retail +45% YoY; ABG/SEL already contributed NPAs to the Q3 FY26 ARC sale; CBG 16% BBB or below.	FIG book 96% A- or above; secured
11	Liquidity / ALM	Financial	Low-Med	CD ratio ~92–94%. Borrowings +119% YoY.	LCR ~138%; 86% of bulk non-callable
12	Interest-rate risk	Macro	Med	~41% of loans repo-linked, 55% fixed; repo cuts in 2025 compressed yields before TD repricing; now deposit rates are rising without repo hikes.	Fixed-rate EEB book; ALM management
13	Technology / cyber / mule accounts	Execution / ESG	Med	CBS only ~3 years old; LOS in build; mule-account and cyber controls flagged with MHA on the Q3 FY26 call.	Real-time transaction monitoring; tech spend
14	Litigation and tax	Regulatory	Low	Claims not acknowledged as debts ₹402 cr; GST orders ~₹1.26 cr under appeal.	Immaterial vs net worth
15	ESG / conduct (borrower over-indebtedness, coercive recovery)	ESG	Med	State ordinances (Karnataka) target coercive MFI recoveries; reputational risk for the largest MFI lender.	MFIN code of conduct; customer-communication programmes
16	Earnings quality (one-offs and ARC income)	Financial	Med	ARC-linked other income ~₹290 cr in FY26; write-off recoveries falling (−53%); PAT growth is provision-led while PPOP falls.	Fee lines (third-party +42%) growing

Specific red flags checklist

Rising debt: borrowings +119% YoY (from a small base). watch
Margin deterioration: NIM −140 bp in 9 quarters. yes
Auditor concerns: none; clean opinion. no
Related-party abuse: none visible; small deposit and CSR flows. no
Promoter selling: yes, about 1.3% of equity in Q1 FY27. yes
Dilution: none since 2019, ESOP pool only (5% of equity). But the board asked management in Jun 2026 to start capital-raising discussions. watch
Customer losses: EEB active borrowers fell to 12.4 mn and recovered to 12.9 mn. stable

Pending / possible events (next 6–12 months)

Q2 FY27 results (late Oct 2026, date not confirmed): NIM and CASA impact.
Permanent CFO appointment.
Capital raising: the board (25 Jun 2026) asked management to start discussions. Size and instrument are not disclosed, so equity dilution is possible.
Sengupta re-appointment process (term ends Oct 2027).
RBI ECL framework implementation.
Monsoon and energy-crisis effects on EEB collections.
Further BFHL sales.
Credit-card launch (execution risk).

Concall Highlights & Guidance

Primary source: company-hosted transcripts (bandhan.bank.in), read in full for Q1 FY27 and in key sections for Q4 FY24 through Q4 FY26. Quotes are verbatim where in quotation marks.

Quarter by quarter

Call	Key highlights	Management in its own words	Tone
Q4 FY24 17 May 2024 (Ghosh's last)	₹3,852 cr technical write-off (₹3,053 cr CGFMU pool); PAT ₹55 cr; FY24 PAT ₹2,229 cr; NIM 7.3%; CASA 37.1%; GNPA 3.8%. Retirement of Ghosh (term to 9 Jul 2024). "Bandhan 2.0" leadership hires.	Ghosh: the new team will "lead the Bank in the next phase of growth, which is Bandhan 2.0". On CGFMU: "Management is extremely confident about the positive outcome".	Confident
Q2 FY25 25 Oct 2024 (interim CEO Kesh)	CGFMU audit complete: ~85% of the ₹20,807 cr insured pool had been repaid by customers; NCGTC assessed the total claim at ₹1,231 cr (₹916 cr already received), leaving ₹315 cr plus ₹228 cr of held recoveries, about ₹543 cr to P&L. Sengupta approved as CEO from 1 Nov 2024.	Kesh: the CGFMU audit experience "has been a little bit exceptional" because the portfolio was "FY21, which was a peak of the COVID period".	Transitional
Q3 FY25 31 Jan 2025 (Sengupta's first)	CGFMU ₹538 cr + Assam ₹52 cr one-offs; ₹1,266 cr write-off; GNPA 4.7%; 9M credit cost 2.6%. Karnataka EEB only ₹740 cr of ₹56,000 cr.	"We have had a tough quarter, rather I would say it's a more challenging quarter." Commits to "the execution of the Bandhan 2.0 Strategy".	Cautious
Q4 FY25 30 Apr 2025	FY25 PAT ₹2,745 cr (+23%), RoA 1.5%, NIM 7.1%. Secured mix 50.5%. CASA 31%. Credit cost 3.9% (Q4). RBI Feb 2025 risk-weight clarification restored CAR to 18.7%.	Targets: "credit cost of 1.5–1.6% over the next 2–3 years"; "RoA to 1.8–1.9% over the next 2–3 years". Credit cost "expected to remain elevated in H1FY26".	Confident
Q1 FY26 18 Jul 2025	PAT ₹372 cr (−65%). Guardrails 2.0 slowed EEB disbursals to ₹10,708 cr (vs ₹13,721 cr). ₹1,047 cr write-off. Credit cost 3.5%. Industry MFI book −13–14% YoY.	Wadhwa: "16% to 18% ... customers, they are not being given loans by anyone now". Sengupta: credit cost guidance of 2.5% for the year "remains the same".	Defensive
Q2 FY26 30 Oct 2025	PAT ₹112 cr. NIM trough 5.8%. Slippages ₹1,590 cr. Accounting change ("ballooning") lifted NPAs. MCLR cut 200 bp. EEB disbursal >₹5,000 cr in September.	"Slippages remained elevated ... looks like that it will continue for 1–2 months more." Mantri: by FY27 exit, EEB credit cost 2.5–3%; bank 1.5–1.6%. NIM "could be sort of the bottom point".	Defensive
Q3 FY26 22 Jan 2026	ARC sales (₹3,165 cr NPA at 18%; ₹3,707 cr written-off pool to Phoenix at ~9%). GNPA down to 3.3%. Gratuity ₹120 cr. NIM 5.9%. WB is 42% of EEB. Exits of CAE and vigilance head questioned.	"We took a decision to take a cleansing." Exits "absolutely because of his family". Guidance: credit cost 1.6–1.7% by end FY27; 15–17% advances CAGR.	Reset / clean-up
Q4 FY26 28 Apr 2026	PAT ₹534 cr (+68%); NIM 6.2%; credit cost 2.0%; CE 98.9% (March), 99.7% excluding the holiday. Secured 56.2%, "achieving our targeted portfolio alignment earlier than planned". EEB +8% QoQ. Standard provisions ₹1,072 cr. EEB head resignation.	Mantri: RoA "between 1.6% to 1.7% ... by the exit of FY27, give or take 10 basis points". On CGFMU: "We don't have any CGFMU coverage for EEB." Deposit competition "definitely intense".	Confident
Q1 FY27 21 Jul 2026	PAT ₹502 cr (+35%); NIM 6.2%; credit cost 1.8% (EEB 3.3%); slippages ₹1,079 cr (EEB ₹604 cr); opex +19% (₹61 cr gratuity one-off); RoA guide cut to 1.2–1.4%. Gold-loan circular disruption; housing restructuring.	"The journey towards ... ROA of 1.6% to 1.8% by exit of Q4FY27 has become more challenging." "It will be a great achievement for the bank to hold on to the NIMs." "We will not just run after this particular book because it is giving a very high yield." On SMA-0: "the election effect of West Bengal ... and the holidays."	Cautious

Guidance vs outcome (credibility ledger)

Guidance (when)	What was promised	Outcome	Verdict
NIM band (FY25 calls)	7.0–7.5%	FY25 7.1%	Met
Credit cost H1 FY26 elevated, then improving (Apr 2025)	Improvement through FY26	3.5% → 3.4% → 3.3% → 2.0%	Met
EEB slippage normalisation by Q2 FY26 (Jul 2025)	Recovery by Q2	Slipped; recovery came "mid-November 2025"	Late
Secured mix ~55% (FY25) → 57–58% (Oct 2025)	Mix shift	56.8% by Jun-26	Met / early
NIM to rise toward 6.5% by exit FY27 (Jan–Apr 2026)	+30 bp	Held at 6.2%; target withdrawn Jul 2026	Missed
Opex/assets ~4.2% (FY27)	4.2%	4.3% in Q1 FY27	Slightly missed
RoA 1.6–1.8% by exit FY27 (set Dec 2024; reaffirmed Apr 2026); 1.8–1.9% "over 2–3 years" (Apr 2025)	RoA rebuild	Cut to 1.2–1.4% (Jul 2026); Q1 at 1.0%	Cut once
Credit cost 1.6–1.7% (→1.6–1.8%) exit FY27	Bank-level credit cost	1.8% in Q1 FY27; retained	On track
FY27 loan growth ~14% (EEB 5–10%, non-EEB 20%+)	Growth	Q1: +16% YoY; Sep-26 +13% (provisional)	On track
Deposits to grow faster than advances (Jan 2026)	Funding	Deposits +9.2% vs loans +13.1% (Sep-26)	Not met
Bulk deposits to reduce (Jul 2026)	Granularity	Bulk +10% QoQ in Q2 FY27	Reversed

Recurring themes:

Secured-mix diversification.
Granular retail deposits.
EEB "worst is behind".
Tech investment.
Other income as the RoA lever.
External blame: COVID, guardrails, elections, Middle East war, monsoon.

Contradictions spotted:

"Deliberate" bulk reduction (Jul) vs Q2 bulk +10%.
RoA cut attributed "purely" to external factors, yet the opex overrun and secured-book economics are internal.
Management denied that the MCLR cut of 200 bp was RBI-driven (Oct 2025), but also acknowledged supervisory "observations".
CASA described as "continuing to remain strong" in Jul, then fell 4.8% QoQ.

Analyst Q&A that exposed risk:

Digant Haria (Greenedge): "the whole secured book is probably 0% ROA for us."
Piran Engineer (CLSA): even with RoA at 1.1% ex-one-off, "where does the improvement come from?"
MB Mahesh (Kotak): why grow low-margin wholesale while margins are under pressure?
Nitin Aggarwal (MOSL): headcount has not fallen despite a 20% EEB shrink.
Pankaj Agrawal (Prudence): post-IPO provisions >₹36,000 cr vs ₹7–8k cr recovered.

Growth, Outlook & Valuation

1. Revenue visibility: the bank's "order book"

A bank's order book is its loan book plus its disbursement pipeline.

Gross advances: ₹1,58,335 cr at Sep-26 (provisional, +13.1% YoY).
~55% of loans are fixed-rate, so yield visibility is high for 12–24 months. EEB loans run 12–24 months; housing is long-tenor.
Q1 FY27 disbursements: EEB ₹10,500 cr, housing ₹1,500 cr, retail ₹2,270 cr. Wholesale disbursals are not disclosed.
EEB repeat (renewal) customers dominate the MFI flow: 81% of borrowers are "Bandhan or Bandhan+1".

Management guidance (latest)	Value	Given
FY27 loan growth	~14% (EEB 5–10%; non-EEB 20%+); Q4 FY26 call said 14–15%	Apr / Jul 2026
Medium-term advances CAGR	15–17%; deposits to grow faster	Jan 2026
Exit-FY27 RoA	1.2–1.4% (was 1.6–1.8%)	21 Jul 2026
Credit cost FY27 / exit	1.6–1.8% (EEB 2.5–3%)	Jul 2026
NIM	Hold ~6.2% ("a great achievement"); no upside built in	Jul 2026
Opex / assets	~4.2% target; running 4.3%; tapering after FY28	Jul 2026
Other income	+10–20 bp of RoA uplift	Jul 2026
Mix	Secured ~60% / unsecured ~40%; EEB 33–35%	Jul 2026
Cost-to-income	"Remain at the same level" for ~1 yr; taper from FY28	Jul 2026

2. Expansion plans and new products

240 branches added in FY26, with housing centres converted to branches. 33 net branches added in Q1 FY27 (1,955 → 1,988). Plan to make metro and urban BUs sales points for secured products.
Credit card launch "in this quarter" (Q2 FY27). New premium SA variants (Legacy, Elite, Elite+). Corporate salary packages. Forex and cash management for wholesale. FCNR(B) deposits. Static-QR POS.
Tech: LOS build (key), CRM, DC/DR automation. IT spend to stay ~10% of opex, falling toward 8% later.

Short-term catalysts (12 months)

Q2/Q3 FY27 prints showing NIM ≥6.0% and credit cost ≤1.8%.
EEB growth resumes (Q3–Q4 is the seasonally strong half).
Permanent CFO named.
BFHL selling ends or a strategic block is placed.
Possible re-introduction of a credit guarantee (CGFMU) on EEB, lowering ECL and credit cost.
RBI rate and liquidity easing (FCNR flows).

Long-term drivers (3–5 years)

Normalised RoA ~1.4–1.6% on a 60:40 secured mix.
Operating leverage from tech spend after FY28.
Fee income from wholesale and third-party distribution.
Deposit diversification beyond the East (non-East deposits 43.5%).
Rural credit deepening and PSL tailwinds.

Industry tailwinds and policy:

RBI's 2025 risk-weight clarification on MFI loans (75%/100%).
PSL-related relaxations.
MFIN guardrails reduce industry over-leverage, a long-term positive for the incumbent.
Government credit-guarantee schemes (NCGTC).
Headwind: the ECL provisioning transition. Management sees limited impact given the 1% EEB standard-asset buffer.

3. Analyst consensus and target prices

Broker views after the Q1 FY27 results and the RoA-guidance cut (22–23 Jul 2026), as reported in the press. Targets were set when the stock was ₹170–210; it is ₹159 today. Fact (as reported; broker notes not opened)

Broker	Rating	Target ₹	vs CMP ₹159	Note
Macquarie	Underperform	130	−18%	Lowest target
Anand Rathi	Sell (maintained)	146	−8%
Ambit Capital	Sell (maintained)	150	−6%
JPMorgan	Neutral	175	+10%
Nomura	Neutral	190	+19%	FY27–28E EPS cut 4–7%
UBS	Neutral	200	+26%
JM Financial	Hold / Add (reports differ)	220	+38%	Raised from ₹200 (Business Today); another summary cites ₹230. FY27–28E EPS cut 2–3%
Deven Choksey	Hold	222	+40%	Rating reported inconsistently
Motilal Oswal (MOFSL)	Neutral (from Buy)	225	+42%	1.3x Mar-28E ABV; FY27E EPS −14%, FY28E −6%; RoA 1.0% FY27E, 1.4% FY28E
SBI Securities	Open call	229	+44%
ICICI Securities	Buy	230	+45%
Nuvama	Hold (from Buy)	230	+45%	Cut from ₹250; FY27–29E earnings −11–14%; RoA 1.2% / 1.4% / 1.6% FY27–29E
CLSA	Accumulate / Outperform	235	+48%
Axis Securities	Buy	235	+48%	Raised from ₹205
Arihant Capital	Accumulate	239	+50%
Jefferies	Buy	240	+51%	Raised from ₹215; earnings cut >10%
Ashika Stock Broking	n.a.	260	+64%	Highest target
Median of 17 post-results targets		225	+42%	Range ₹130–260 Est.

How to read this. Pre-results consensus (Sharpely, 3 Jul 2026, 25 analysts) was a median target of ₹195 (average ₹189) and a median FY27E EPS of ₹17.2. That EPS figure predates the 11–14% estimate cuts and should be treated as stale. A clean post-cut consensus FY27E/FY28E EPS was not available in the sources accessed. The broker RoA paths (FY27E 1.0–1.2%, FY28E 1.4%) are above our base case (FY28E 1.2%), which is why our probability-weighted value (~₹185) is well below the sell-side median (₹225). Most targets were set before the Q2 FY27 CASA slide of 3 Oct 2026. Analyst View
Sources: Business Today (22 and 23 Jul 2026), Republic World (22 Jul 2026), Swastika and Sharpely summaries. Ratings and targets are as reported by the press and were not checked against the broker notes.

4. Valuation snapshot (CMP ₹159, 12 Oct 2026)

Metric	Value	Basis
P/E (TTM)	18.9x	TTM EPS ₹8.40 (Screener)
P/B	0.98–1.00x	BVPS ₹159 (Screener) / ₹162.4 incl. ESOP reserve (Jun-26) Est.
P/ABV	~1.03x	ABV ₹153.7 = (net worth − NNPA ₹1,410 cr) / 161.1 cr Est.
Market cap / deposits	14.8%	₹25,593 / ₹1,72,689 cr (Sep-26) Est.
Dividend yield	0.95%	₹1.50 DPS; payout 9–20%; no buybacks (banks rarely buy back)
P/B at recent price points	1.25x → 1.31x → 1.09x → 0.98x	₹199 (29 Apr 2026) → ₹208.8 (21 Jul close) → ₹177.5 (22 Jul intraday low) → ₹159 (12 Oct) on BV ₹158.8 (Mar-26) / ₹162.4 (Jun-26) Est.
52-week range on P/B	0.84x – 1.39x	₹134.30 (9 Dec 2025) – ₹220.70 (15 Jul 2026), on BV ₹159 Est.
3-yr average P/B	n.a.	Historical P/B series not retrieved this run
Peer P/B range	1.4x – 3.6x	IDFC First, RBL, Ujjivan, CreditAccess, AU (Tab 9)

5. Scenario valuation, FY28E book (12–18 month view) Est.

Scenario	Key assumptions	FY28E RoA	FY28E PAT ₹ cr	EPS ₹	BVPS ₹	RoE	Target P/B	Value ₹	vs CMP	Prob.
Bear	MFI relapse (energy shock / politics); NIM 5.6%; credit cost 2.8%	0.6%	~1,500	~9.3	~172	~5.5%	0.70x	~120	−25%	25%
Base	Guided path: NIM ~6.0%, credit cost 1.7%, opex/assets 4.2%, loans +14%	1.2%	~3,000	~18.6	~185	~10%	1.00x	~185	+16%	55%
Bull	MFI growth returns, CASA recovers, operating leverage; credit cost 1.4%	1.6%	~4,000	~24.8	~190	~13%	1.40x	~265	+67%	20%
Probability-weighted value									~₹185	+16%

Method: FY28E average assets ~₹2.5 lakh cr (balance sheet grows ~12% a year from ₹2.11 lakh cr) × RoA, ÷ 161.1 cr shares. BVPS rolls forward FY26 ₹158.8 with retained EPS (DPS ₹1.5). Target P/B is anchored to the peer range and RoE vs ~13% cost of equity. Illustrative only; not a forecast endorsed by the company or by consensus. FY27E on the same method (RoA 1.0–1.1%): PAT ~₹2,200–2,450 cr, EPS ₹13.7–15.2, i.e. 10.5–11.6x FY27E P/E at CMP.

Final Verdict

Business quality

Medium

Real MFI moat; secured book not yet profitable; East-heavy funding

Management quality

Medium

Credible CEO and board; exit-FY27 RoA cut; control-function churn

Financial quality

Medium

CET1 17.5%, NNPA 0.9%; RoA 1.0%, cost/income 61.5%, CASA 26.7%

Valuation

Fair

~1.0x P/B and 1.03x P/ABV for ~8–10% RoE; cheapest in peer set

Overall view

Neutral

Accumulate only on evidence of a RoA/CASA turn

Bull case

The credit cycle is over. The EEB stress pool is down 31% YoY, vintage curves are improving and CE is 98.6%. Credit cost could undershoot the 1.6–1.8% guide as SMA normalises.
At ~1.0x book with 17.5% CET1, a move to 1.3–1.4% RoA (still below FY25's 1.5%) re-rates the stock toward 1.3–1.4x, worth ₹210–265.
Bandhan's MFI share has risen through the downturn, and a 100 bp rate hike is already in place. Any EEB growth recovery in H2 FY27 is high-margin.

Bear case

Funding is the new problem: CASA is 26.7% and falling, bulk is back up, and SA costs are rising. NIM could slip below 6%, and the secured mix keeps diluting yields.
The energy shock, monsoon and political risk in WB and Bihar could trigger the fourth MFI stress cycle in a decade, on a book that is still 34% unsecured EEB.
Management churn (CFO, EEB head, audit and vigilance), an RBI nominee director, promoter selling and the RoA/NIM guidance cuts keep a governance discount at ≤1x book.

Base case (12–18 months)

RoA settles at 1.0–1.2% in FY27 and approaches 1.2% by FY28. NIM holds at 6.0–6.2%; credit cost runs 1.7–1.8%; cost-to-income stays around 60%. The stock trades at 0.9–1.1x book, giving a value of ~₹170–200 Est..

Returns track book-value growth of ~10–12% plus a modest re-rating if Q2–Q3 prints are clean.

5 things to remember

EEB (microfinance) is 33.8% of loans, at 5.9% GNPA, and remains the main profit pool. Secured is 56.8% but thin-margin.
The FY24–FY27 clean-up: ₹6,260 cr of technical write-offs (Q4 FY24 + FY25), ₹2,370 cr in FY26, and ₹6,872 cr of ARC sales in Q3 FY26. Headline GNPA of 3.1% is post-surgery.
Exit-FY27 RoA guidance was cut to 1.2–1.4% on 21 Jul 2026. The stock fell as much as 14.6% intraday the next day and ~19% over two sessions.
CASA ratio fell to 26.7% (Sep-26) from 37.1% (Mar-24). The deposit base is 52% East and 41% West Bengal.
BFHL (37.53%) is selling: ~2.13 cr shares in Q1 FY27. There is no dilution; the share count has been flat since 2019. Bandhan AMC and Bandhan Life are sister companies, not subsidiaries.

5 questions to ask before investing

What exactly drove Q2 FY27's 4.8% QoQ CASA decline and 10% bulk rebound, and what is the Q2 cost-of-funds print?
What are the standalone RoA and RoE of the secured verticals (housing, retail, wholesale) after allocated opex and DSA costs?
How much more stock must BFHL sell, by when, under its RBI dilution schedule, and through what route (blocks vs strategic)?
Why did the CFO, EEB head, two CAEs and the CIV leave within 18 months, and when will permanent replacements be named?
If the energy-price shock persists, what EEB credit cost does the bank's own stress test show, and will it re-enter CGFMU-type guarantee cover?

Bandhan Bank is cheap for a reason, but no longer for its old reason. Asset quality has been repaired at a heavy cost. The open questions now are funding (CASA), cost efficiency and management stability. At ~1.0x book the downside is cushioned by 17.5% CET1. The upside needs proof that RoA can climb back above 1.2% without a fresh MFI accident. Neutral: accumulate below ~0.9x book, or on two clean quarters. Analyst View

Sources

All accessed 12 Oct 2026 unless noted. Company PDFs were downloaded and text-extracted. Key tables (deck slides 9–16, 20–21, 28–33, 41) were rendered as images and visually verified because the text extraction column-shifted.

A. Company filings and disclosures (bandhan.bank.in)

Document	URL
Integrated Annual Report FY2025-26	https://bandhan.bank.in/sites/default/files/2026-07/Integrated-Annual-Report-FY25-26-1.pdf
Investor Presentation Q1 FY27 (21 Jul 2026)	https://bandhan.bank.in/sites/default/files/2026-07/Investor-Presentation-Q1-FY-26-27.pdf
Quarterly Result Q1 FY27 (limited review)	https://bandhan.bank.in/sites/default/files/2026-07/Quarterly-Result-Q1-FY-26-27.pdf
Press Release Q1 FY27	https://bandhan.bank.in/sites/default/files/2026-07/Press-Release-Q1-FY-26-27.pdf
Press Release Q4 FY26	https://bandhan.bank.in/sites/default/files/2026-04/Press-Release-Q4-FY-25-26.pdf
Investor Presentations Q4 FY26 and Q3 FY26	https://bandhan.bank.in/sites/default/files/2026-04/Investor-Presentation-Q4-FY-25-26.pdf ; …/2026-01/Investor-Presentation-Q3-FY-25-26.pdf
Q2 FY27 provisional business update (3 Oct 2026)	https://bandhan.bank.in/sites/default/files/2026-10/Unaudited-Financial-Figures-for-the-quarter-ended-September-30-2026.pdf
Credit-rating update, ICRA (25 Sep 2026)	https://bandhan.bank.in/sites/default/files/2026-09/Disclosure-under-Regulation-30-of-the-SEBI-LODR-Regulations-2015-Update-on-Credit-Ratings.pdf ; ICRA rationale: https://www.icra.in/Rationale/ShowRationaleReport?Id=145844
Shareholding pattern, 30 Jun 2026	https://bandhan.bank.in/sites/default/files/2026-07/Shareholding-Pattern_BBL_June26_Website.pdf
Investor relations and quarterly report index	https://bandhan.bank.in/investor-relations ; https://bandhan.bank.in/quarterly-report
Other filings referenced (not opened): ESOP allotment Oct 2026; analyst meet 28 Sep 2026; physical-share special window	https://bandhan.bank.in/sites/default/files/2026-10/SE_IntimationESOPAllotmentOct2026.pdf ; …/2026-09/Details-of-Analysts_Institutional-Investors-Meet-September-28-2026.pdf

B. Earnings-call transcripts (company-hosted)

Call	URL
Q1 FY27 (21 Jul 2026), read in full	https://bandhan.bank.in/sites/default/files/2026-07/Bandhan-Bank-Q1FY27-Earnings-Call-Transcript.pdf
Q4 FY26 (28 Apr 2026)	https://bandhan.bank.in/sites/default/files/2026-05/Bandhan-Bank-Q4FY26-Earnings-Call-Transcript.pdf
Q3 FY26 (22 Jan 2026)	https://bandhan.bank.in/sites/default/files/2026-01/Bandhan-Bank-Q3FY26-Earnings-Call-Transcript_0.pdf
Q2 FY26 (30 Oct 2025)	https://bandhan.bank.in/sites/default/files/2025-11/Q2FY26-Transcript_Bandhan-Bank_3.pdf
Q1 FY26 (18 Jul 2025)	https://bandhan.bank.in/sites/default/files/2025-07/Q1FY26-Earnings-Trancript.pdf
Q4 FY25 (30 Apr 2025)	https://bandhan.bank.in/sites/default/files/2025-05/Bandhan-Bank-Q4-FY25-Earnings-Transcript.pdf
Q3 FY25 (31 Jan 2025)	https://bandhan.bank.in/sites/default/files/2025-02/Bandhan-Bank-Q3-FY25-Earnings-Transcript.pdf
Q2 FY25 (25 Oct 2024)	https://bandhan.bank.in/sites/default/files/2024-10/Bandhan-Bank-Q2-FY25-Earnings-Transcript.pdf
Q1 FY25 (Jul 2024)	https://bandhan.bank.in/sites/default/files/2024-07/Bandhan-Bank-Q1FY25-Earnings-Transcript.pdf
Q4 FY24 (17 May 2024)	https://bandhan.bank.in/sites/default/files/2024-05/Bandhan-Bank-Q4FY23-24-Earnings-Transcript.pdf

C. Financial databases (market data)

Screener.in, Bandhan Bank standalone: https://www.screener.in/company/BANDHANBNK/ (price 12 Oct 2026, 12:45 IST; P&L, BS, CF, quarterly, shareholding)
Screener.in peers (12 Oct 2026, 12:51 IST): /AUBANK/, /IDFCFIRSTB/, /RBLBANK/, /UJJIVANSFB/, /CREDITACC/
MarketsMojo Q4 FY26 analysis: https://www.marketsmojo.com/news/result-analysis/bandhan-bank-q4-fy26-strong-profit-rebound-masks-asset-quality-concerns-3968326

D. News and secondary coverage

Sahi, Q1 FY27 and the RoA guidance cut: https://www.sahi.com/news/bandhan-bank-standalone-q1-net-profit-jumps-to-502-crore-cuts-roa-guidance-to-1-2-1-4-4476-PE1_COR
Bajaj Broking, shares fall 16% (22 Jul 2026): https://www.bajajbroking.in/share-market-news/bandhan-bank-shares-fall-16percent-despite-35percent-rise-in-q1-fy27-net-profit
Daily Pioneer, Q1 FY27: https://dailypioneer.com/news/bandhan-bank-q1-business-grows-11-in-fy26-27
Sahi, Q4 FY26 results and 52-week high: https://www.sahi.com/blogs/bandhan-bank-q4-results-2026-share-price
Multibagg, Q4 FY26: https://www.multibagg.ai/market-pulse/articles/bandhan-bank-q4-fy26-results-cmoinsdqc2j8bp30je360276c
InvestyWise, Q4 FY26 call summary: https://www.investywise.com/bandhan-bank-q4fy26-earnings-call-transcript/
Business Standard / Outlook Business, Q1 FY27 (headline only; BS returned 403)
Added at QC review: Business Today, broker targets after Q1 FY27 (22 Jul 2026): https://www.businesstoday.in/markets/stocks/story/why-bandhan-bank-shares-fell-14-macquarie-target-at-rs-130-jpmorgan-clsa-jefferies-targets-544362-2026-07-22 ; Business Today, four-month low, 52-week high/low dates (23 Jul 2026): https://www.businesstoday.in/markets/stocks/story/bandhan-bank-shares-hit-four-month-low-down-for-sixth-day-price-targets-technicals-and-more-544713-2026-07-23 ; Republic World (22 Jul 2026): https://www.republicworld.com/business/bandhan-bank-share-price-falls-q1-fy27-results-brokerages-downgrade-2026-07-22-133060 ; Sharpely consensus snapshot: https://sharpely.in/stocks/bandhanbnk/forecast ; FilingReader, board outcome 25 Jun 2026: https://filingreader.com/news-wire/mumbai/2026-06-25/bandhan-bank-appoints-former-regulator-debasish-panda-as-chairman
Added at QC review (history): Business Standard on the GRUH swap (8 Jan 2019): https://www.business-standard.com/article/markets/gruh-finance-tumbles-14-bandhan-bank-6-post-merger-deal-119010800197_1.html ; RBI lifting curbs (25 Feb 2020): https://www.business-standard.com/article/finance/bandhan-bank-gets-rbi-relief-on-opening-of-branches-subject-to-conditions-120022501554_1.html ; IDFC AMC deal (Apr 2022): https://www.business-standard.com/article/companies/bandhan-consortium-to-acquire-idfc-amc-from-idfc-for-rs-4-500-cr-122040601414_1.html ; Aegon India JV sale completed: https://aegon.com/newsroom/news/2024/indian-jv-stake-sale-completed ; RBI on the IWG report (Nov 2021): https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50695 ; IPO details: https://www.thequint.com/news/bandhan-bank-ipo-heres-all-you-need-to-know ; NCGTC audit and CGFMU/ECLGS claims: https://www.outlookbusiness.com/corporate/bandhan-bank-says-ncgtc-to-conduct-audit-of-claims-filed-under-credit-guarantee-scheme

E. Reference

Wikipedia, Bandhan Bank: https://en.wikipedia.org/wiki/Bandhan_Bank (history, 2018 RBI restriction; that sentence is flagged on the page)
Wikipedia, Chandra Shekhar Ghosh: https://en.wikipedia.org/wiki/Chandra_Shekhar_Ghosh

F. Ratings and regulatory

ICRA reaffirmation, 25 Sep 2026 (filing above). CRISIL reaffirmation, 28 Sep 2026 (per Screener announcement feed).
RBI penalties: FY26 Annual Report (Directors' Report; BRSR Principle 1; Note 18.9).

Data gaps and limitations (disclosed):

Q2 FY27 results not yet published; only the 3 Oct provisional update is used.
Broker targets (Tab 12) are press-reported (Jul 2026) and not checked against the broker notes. A clean post-cut consensus FY27E/FY28E EPS was not available.
Verified at QC review: IPO band and size, GRUH swap ratio (568:1,000), IDFC AMC terms, Aegon Life closing date, the RBI Feb 2020 lifting of curbs, and the RBI 2021 26% cap. Still not verified: the Aegon Life consideration, Bandhan's intermediate RBI dilution schedule, and the route by which BFHL went from ~61% to ~40% in 2020.
Pillar 3 large-exposure and top-20 borrower data were not retrieved.
Historical 3-year P/B series not retrieved.
52-week high ₹220.70 (15 Jul 2026) and low ₹134.30 (9 Dec 2025), per Business Today (23 Jul 2026); added at QC review.
Peer data (Tab 9) is from Screener only and was not cross-checked against peer filings.
No formal expiry date was found for the original CGFMU cover; it applied to the FY2020-21 loan vintage.
FY22–FY24 opex/provision split not in the sources accessed.
AS-17 segment results did not extract cleanly from the scanned results PDF and are omitted.