Financial Services · NSE: BANDHANBNK
Bandhan Bank
Q2 FY27 earnings call · Guided by management
Call held 28 Oct 2026 · Read the filing on NSEFiling
- M.Cap
- ₹28,321Cr
- P/E
- 15.2×
- 1Y return
- +12.79%
- From 52W high
- −20.4%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · standalone · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Interest earned | 5,754 | 5,354 | +7.5% | 5,631 | +2.2% |
| Net interest income | 2,960 | 2,589 | +14.4% | 2,921 | +1.4% |
| Operating profit | 1,556 | 1,310 | +18.8% | 1,358 | +14.6% |
| Net profit | 622 | 112 | +455.8% | 502 | +23.9% |
| EPS (₹) | 3.86 | 0.69 | +459.4% | 3.11 | +24.1% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
More figures from the call
“Other income, where we are growing steadily, should contribute around 1.5% of assets.”
“Our guidance of 4.2% operating expenses to total assets remains unchanged.”
“Full-year PSLC cost will be around INR 120 crore.”
“If NIM stays around 6.1%-6.2%, net interest income as a proportion of total assets should be around 5.8%.”
“Operating expenses should remain around 4.2% of assets, resulting in operating profit of around 3.1% of assets.”
In short
- 01Full-year FY27 loan growth target of around 14% maintained.
- 02Q4 exit ROA guidance of 1.2%-1.4% unchanged; 1.2% reached this quarter; medium-term aspiration 1.6%-1.8%.
- 03NIM expected to stay in the 6.1%-6.2% range; NIM was 6.1% in Q2.
- 04EEB (microfinance) de-growth arrested; 8%-10% growth targeted through Q3 and Q4.
- 05ECL transition impact estimated at about Rs 2,200 crore through capital, with 15-20 bps quarterly flow impact.
- 06Opex-to-assets guidance of 4.2% kept; FY27 PSLC cost seen at about Rs 120 crore.
- 07Deposits rose 4.7% QoQ to about Rs 1.73 lakh crore; savings balances fell after rate recalibration.
- 08Draft bancassurance commission norms seen as a headwind; impact not yet fully assessed.
Segments
Non-EEB: Non-EEB business grew 20% YoY
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 4
Non-EEB: Non-EEB business grew 20% YoY
“Growth continued to be led by our non-EEB business, which expanded by 20% YoY”
EEB: EEB de-growth has been arrested
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 4
EEB: EEB de-growth has been arrested
“the de-growth in EEB has now been arrested.”
EEB: EEB portfolio at Rs 52,616 crore
Vinay Jain · Chief Financial Officer (interim) · p. 6
EEB: EEB portfolio at Rs 52,616 crore
“The EEB portfolio stood at INR 52,616 crores.”
Retail assets: Retail assets grew 41.9% YoY, led by commercial vehicles
Vinay Jain · Chief Financial Officer (interim) · p. 6
Retail assets: Retail assets grew 41.9% YoY, led by commercial vehicles
“Retail assets grew 41.9% YoY, led by commercial vehicles,”
Wholesale Banking: Wholesale Banking grew 31.6% YoY
Vinay Jain · Chief Financial Officer (interim) · p. 6
Wholesale Banking: Wholesale Banking grew 31.6% YoY
“Wholesale Banking grew 31.6% YoY”
Margins and costs
Replacing a major system saves almost Rs 50 crore a year
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 13
Replacing a major system saves almost Rs 50 crore a year
“replacing a major platform or system generated savings of almost INR 50 crore annually”
PSLC cost to fall this year and be close to zero next year
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 13
PSLC cost to fall this year and be close to zero next year
“The cost will come down substantially this year, be almost neutralised or close to zero next year”
No deposit rate rises expected in the very short term
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 8
No deposit rate rises expected in the very short term
“Till now, none of the banks have increase their rates, and we also don't expect that in the very short term.”
Cost of funds expected to keep moderating
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 8
Cost of funds expected to keep moderating
“Cost of funds should continue to moderate.”
NIM broadly stable at 6.1%
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 5
NIM broadly stable at 6.1%
“NIMs remained broadly stable at 6.1%.”
Debt and working capital
Approach to bulk deposits unchanged
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 5
Approach to bulk deposits unchanged
“Our philosophy on bulk deposits, therefore, remains unchanged.”
Bulk deposits up about Rs 4,300 crore QoQ, around 10%
Vinay Jain · Chief Financial Officer (interim) · p. 6
Bulk deposits up about Rs 4,300 crore QoQ, around 10%
“Bulk deposits increased by approximately INR 4,300 crores sequentially or around 10%.”
Deposits at about Rs 1.73 lakh crore, up 4.7% QoQ
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 4
Deposits at about Rs 1.73 lakh crore, up 4.7% QoQ
“increased to approximately INR 1.73 lakh crores with a strong 4.7% sequential growth”
Net credit-deposit ratio fell to 89.5%
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 4
Net credit-deposit ratio fell to 89.5%
“this helped bring our net credit-deposit ratio down to 89.5% from”
Savings accounts: Savings balances moved out after interest rate recalibration
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 4
Savings accounts: Savings balances moved out after interest rate recalibration
“We saw some balances move out following the recalibration of interest rates”
Acquisitions and new business
Credit cards: Credit card business launched with four variants
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 3
Credit cards: Credit card business launched with four variants
“launch of our credit card business. Our four variants, Sparks, Ignite, Flare and Lumina have been designed”
New forex and wholesale products launched to add fee income
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 10
New forex and wholesale products launched to add fee income
“New forex products have been launched, and new wholesale products are being introduced. These should add to fee income.”
Management
Vinay Jain is interim Chief Financial Officer
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 6
Vinay Jain is interim Chief Financial Officer
“With that, I would now like to hand over the call to our interim Chief Financial Officer; Shri Vinay Jain,”
One-offs
No extraordinary or one-time income in the quarter
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 18
No extraordinary or one-time income in the quarter
“In our entire income portfolio, there's no extraordinary or onetime income.”
Risks
ECL transition impact estimated at around Rs 2,200 crore
Vinay Jain · Chief Financial Officer (interim) · Q&A · p. 9
ECL transition impact estimated at around Rs 2,200 crore
“On ECL, we currently estimate the transition impact at around INR 2,200 crore.”
ECL flow impact estimated at 15-20 bps a quarter
Vinay Jain · Chief Financial Officer (interim) · Q&A · p. 9
ECL flow impact estimated at 15-20 bps a quarter
“On a flow basis, we estimate an impact of 15–20 basis points on a quarterly”
RBI gives a five-year window for ECL capital impact
5yearsVinay Jain · Chief Financial Officer (interim) · Q&A · p. 9
RBI gives a five-year window for ECL capital impact
5years“From a capital adequacy standpoint, the RBI has provided a five-year”
Final ECL transition outcome expected to be better as DPD and SMA pools fall
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 9
Final ECL transition outcome expected to be better as DPD and SMA pools fall
“The DPD and SMA pools are coming down, so we expect the eventual transition outcome to be much better.”
Bancassurance: Draft bancassurance commission changes seen as an industry headwind
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 9
Bancassurance: Draft bancassurance commission changes seen as an industry headwind
“On bancassurance, the proposed changes will create headwinds across the industry, and Bandhan Bank”
Other
Bancassurance: Insurance model is consent-based; no credit-linked insurance offered
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · Q&A · p. 9
Bancassurance: Insurance model is consent-based; no credit-linked insurance offered
“Our model is consent-based, and we do not currently offer credit-linked insurance.”
Loan book at about Rs 1.58 lakh crore, up 13%
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 4
Loan book at about Rs 1.58 lakh crore, up 13%
“our loan book reached approximately INR1.58 lakh crores, representing a healthy 13%”
Secured portfolio: Secured book up 18% YoY, now 57.3% of advances from 54.9%
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 4
Secured portfolio: Secured book up 18% YoY, now 57.3% of advances from 54.9%
“The secured portfolio grew 18% YoY and now represents 57.3% of the total advances from 54.9% a year”
Network at 2,001 branches and 4,414 banking units
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 5
Network at 2,001 branches and 4,414 banking units
“and 14 banking units taking the total count to 2001 branches and 4,414 banking units.”
Gross NPA at 3.1% and net NPA at 0.9%
Partha Pratim Sengupta · Managing Director and Chief Executive Officer · p. 5
Gross NPA at 3.1% and net NPA at 0.9%
“Our overall asset quality position remained healthy, with gross NPA at 3.1% and net NPA at 0.9%.”
Sources
- Earnings call transcript, Q2 FY27 Filed 3 Nov 2026 · 19 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.