BANDHANBNK
Small CapBandhan Bank Limited
Financial Services
Bandhan Bank is a universal bank with a pan-India network of 6,355 outlets across 35 states/UTs. It offers diversified financial solutions across EEB, Housing & Retail, and Wholesale Banking segments, serving 31.8 million customers with a focus on digital transactions and retail deposits.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 25/100Rev -0% YoY · PAT +68% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,428 Cr | -0.1% | -0.1% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹534 Cr | +67.9% | +159.2% |
| PAT margin | 9.8% | +399 bps | +605 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Bandhan Bank reports strong Q4FY26 PAT growth of 159.2% QoQ and 68.0% YoY, driven by significant reduction in provisions and improved asset quality, despite flat NII growth. Advances grew 12.6% YoY, deposits 10.0% YoY.
The bank shows progress on strategic objectives: portfolio diversification towards secured assets, improved liability resilience with higher retail deposits, and strengthened asset quality with reduced GNPA/NNPA and credit costs. Profitability metrics (ROA, ROE) have improved significantly QoQ and YoY, supported by lower provisions. The shift away from EEB concentration and digital initiatives are positive.
Gross Advances Mix (Mar'26)
Latest issuer-disclosed distribution across 5 reported categories.
Portfolio Diversification
Calibrated shift towards higher secured assets mix (56.2% of book) has strengthened portfolio resilience.
Housing Finance
Housing assets grew 8.4% QoQ to ₹ 347.9 bn, with 56.7% of borrowers being salaried professionals.
Retail Assets
Retail assets grew 16.9% QoQ to ₹ 160.9 bn, with strong disbursements of ₹ 32.8 bn in Q4FY26.
Digital Initiatives
98% of retail transactions are digital; 93% saving accounts opened digitally; 30% YoY growth in UPI transactions.
Banking Outlets
Total banking outlets increased by 46 QoQ to 6,355, including 1,955 branches and 4,400 banking units.
Merchant Acquiring
Partnered with Hitachi Payment Services to enhance merchant acquiring capabilities, launched in Jan-2026.
Government Solutions
Launched Fund Disbursement Management System (FDMS), closing FY26 with 100+ Cr. INR CASA balance.
Improved Collection Efficiency
EEB collection efficiency (excl. NPA, excl. arrears) improved to 99.3% in Q4FY26 from 98.0% in Q3FY26.
Reduced Over-Leverage Risk
96% of EEB portfolio is Bandhan Bank + 1 or less, up 450 bps YoY and 30 bps QoQ.
Lower Provisions
Provisions (Std. + NPA) significantly reduced by 41.4% QoQ and 46.3% YoY in Q4FY26.
Declining CASA Ratio
CASA ratio decreased by 206 bps YoY to 29.3%, though it improved 204 bps QoQ.
Operating Profit Decline
Operating profit declined 8.3% YoY and 0.3% QoQ in Q4FY26.
EEB Asset De-growth
EEB asset growth was -4.7% YoY, reflecting a strategic reduction in its share of the loan book.
Concentration in Eastern Region
Eastern region accounts for 42% of loans & advances and 40% of deposits, indicating regional concentration risk.
Unsecured Portfolio
Unsecured portfolio still constitutes 43.8% of advances, despite a strategic shift towards secured assets.
EEB Asset Quality
EEB segment still holds ₹ 31.1 bn in NPA, representing 5.8% of its book, despite overall improvements.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
For financial services, both YoY and QoQ comparisons are crucial. YoY provides insight into long-term growth and seasonal trends, while QoQ highlights sequential momentum in disbursements, asset quality, and profitability, especially given the strategic shifts.
AUM Growth (Gross Advances)
₹ 1,542.3 bn (12.6% YoY & 6.2% QoQ)
Disbursements (EEB)
₹ 150.4 bn in Q4FY26
Disbursements (Housing)
₹ 82.0 bn in Q4FY26
Disbursements (Retail)
₹ 32.8 bn in Q4FY26
Strategic Objectives
Focused on portfolio diversification, liability resilience, strengthening asset quality, and improving profitability.
Digital Growth
Powering the next phase of digital growth with mBandhan 2.0, new retail internet banking, and DIY liability onboarding.
Operational Excellence
Focus on workforce upskilling and reskilling, and driving operational excellence to improve productivity.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EEB Asset Quality | EEB GNPA at 5.8% of book. | Continued reduction in EEB stress pool and slippages. |
| Non-EEB Growth | Non-EEB book grew 24.7% YoY. | Sustained growth in Housing, Retail, and Wholesale Banking segments. |
| CASA Ratio | CASA ratio at 29.3%. | Improvement in CASA ratio to stabilize funding costs. |
| Cost to Income Ratio | Cost/Income at 59.6%. | Further efficiency gains to improve operating leverage. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
60BullishSMA20 +26.1% / mo · near 52W high
Technical chart
BANDHANBNKdaily · 3Y+37.1%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 62. Wait for confirmation.
- SMA20 rising (~5.4% over last month) — short-term momentum positive.
- RSI(14) at 62 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 4.4%.
- Cash flow contributes 7/10 to the score.
- Balance sheet contributes 8/15 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -626.8%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 19th percentile of the scored universe and 35th percentile within Financial Services. Main check: results consistency is weak at 15/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 35th pctile, median 62 · Small: 23rd pctile, median 65
107 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4.5%.
- ▸6 years of positive FCF.
- ▸Debt/equity is 0.09.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸Promoter holding fell 1.9%.
- ▸ROCE is low at 6.4%.
- ▸ROE is low at 4.9%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 27.30
- P/B
- 1.32
- EV/EBITDA
- —
- Market Cap
- 33365.00Cr
Profitability
- ROE
- 4.91%
- ROCE
- 6.41%
- ROA
- 0.58%
- Dividend Y
- 0.72%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- -11.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- -18.00%
Balance Sheet
- Debt/Equity
- 0.09
- Interest Coverage
- —
- Altman Z
- 1.85
- Book Value
- 157.00
Cash Flow
- FCF Yield
- 4.38%
- FCF Positive Y
- 6/5
- OCF
- 1143.00 Cr
- EPS TTM
- 7.60
Shareholding
- Promoter Hold
- 38.98%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 92%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.