How Did Bandhan Bank Perform in Q2 FY26 With Steady Growth Momentum?
Bandhan Bank’s Q2 FY26 business update highlights a period of balanced growth in both advances and deposits. While overall business volumes continued to rise, the bank’s CASA ratio showed signs of stabilisation after recent pressure. This quarter’s performance underscores the bank’s strategy of maintaining growth with improving deposit mix quality.
About Bandhan Bank
Founded in 2015, Bandhan Bank has emerged as a significant player in the Indian banking sector, especially in the microfinance and retail loan segments. The bank serves over 3 crore customers across India through an extensive branch and digital network. Its primary focus areas include microloans, retail lending, and SME financing, with efforts underway to diversify its deposit base for long-term stability.
Q2 FY26 Business Highlights
| Parameter | Q2 FY26 | YoY Change | QoQ Change |
|---|---|---|---|
| Loans & Advances | ₹1.40 Lakh Crore | ↑7.2% | ↑4.8% |
| Total Deposits | ₹1.57 Lakh Crore | ↑10.9% | ↑2.1% |
| CASA Deposits | ₹44,214 Crore | ↓6.5% | ↑5.6% |
| CASA Ratio | 28.0% | vs 33.2% (YoY) | vs 27.1% (QoQ) |
✅ Bandhan Bank’s loan book expanded to ₹1.40 lakh crore, marking a sequential increase of 4.8%, supported by healthy retail and SME demand. The steady deposit growth of 10.9% YoY also indicates improving franchise strength despite a highly competitive deposit environment.
💡 The CASA ratio improvement to 28.0% (from 27.1% last quarter) shows early signs of stabilisation after a period of decline. However, the YoY fall from 33.2% suggests that regaining a high share of low-cost deposits remains a key priority for the bank.
The overall growth trend suggests that Bandhan Bank continues to rebalance its portfolio between microfinance and secured retail segments. The bank’s steady credit expansion coupled with deposit mobilisation reflects improving consumer sentiment and credit demand in its operating regions.
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Analysis and Key Observations
📈 The QoQ rise in CASA deposits is encouraging and reflects customer confidence returning to the bank’s retail operations. This momentum could further strengthen liquidity if sustained over upcoming quarters.
🎯 With deposits crossing ₹1.57 lakh crore, Bandhan Bank now enjoys a stronger funding base to support loan expansion. The improvement in CASA ratio also indicates that deposit cost pressures may moderate going forward.
⚠️ Investors should track asset quality trends in the microfinance and retail segments closely. Although overall balance sheet growth looks positive, higher unsecured lending could expose the bank to cyclical risks if economic conditions soften.
Investor Takeaway
Bandhan Bank’s Q2 FY26 update indicates that the bank is gradually regaining its growth rhythm. Improving CASA ratio, strong deposit inflows, and steady credit expansion position the bank for better profitability in upcoming quarters. Investors tracking private sector banks may see this as a sign of stabilisation after multiple quarters of mixed performance. Read more insightful analyses at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
