Bandhan Bank Q2 Update: Loans grow 13% YoY, but sequential growth remains modest

Bandhan Bank’s loan growth remained modest on a sequential basis in the second quarter of fiscal 2027, while deposits grew at a faster pace, according to the lender’s business update for the quarter ended September 30.Loans and advances, including on-book and PTC assets, stood at ₹1,58,335 crore as of September 30, up 13.1% from ₹1,40,041 crore a year earlier. On a quarterly basis, advances grew 1.8% from ₹1,55,555 crore as of June 30.Total deposits stood at ₹1,72,689 crore, rising 9.2% year-on-year and 4.7% sequentially. The deposit mix, however, remained a key area to watch.

Retail deposits stood at ₹1,25,471 crore, up 11.9% YoY and 2.9% QoQ. Retail term deposits rose 16.8% YoY and 8% QoQ to ₹79,340 crore.CASA deposits, comprising current and savings account deposits, stood at ₹46,131 crore, up 4.3% YoY but down 4.8% from June. As a result, the CASA ratio declined to 26.71% from 29.40% in the previous quarter and 27.97% a year earlier.Bulk deposits stood at ₹47,218 crore, rising 2.8% YoY and 10% QoQ.

Retail deposits accounted for 72.66% of total deposits, compared with 73.96% in the previous quarter.The shift towards retail term and bulk deposits, alongside the sequential decline in CASA, will remain a key metric to watch as the bank’s funding mix evolves.On the asset quality front, collection efficiency remained strong at 98.9%, unchanged from June. Collection efficiency for the emerging entrepreneurs and enterprises segment improved marginally to 98.6% from 98.5%, while the non-EEB segment moderated to 99.2% from 99.4%.The bank’s liquidity coverage ratio stood at approximately 137.88% as of September 30.Bandhan Bank shares ended 1.64% higher at ₹175.30 on Thursday. The stock has climbed over 20% so far this year.