Bandhan Bank Q4 business update: Advances rise to Rs 1.54 lakh crore, deposits up 10%

Bandhan Bank posted healthy growth in advances along with steady deposit mobilisation for the quarter ended March 31, 2026, as per its provisional update released on Saturday. The bank’s loans and advances, including on-book and PTC, stood at Rs 1.54 lakh crore at the end of the March quarter, registering a 12.6% year-on-year increase and a 6.2% sequential rise.

Total deposits came in at Rs 1.66 lakh crore, up 10% from a year ago and 6.1% higher on a quarter-on-quarter basis. CASA deposits rose 2.8% year-on-year to Rs 48,751 crore, with the CASA ratio at 29.31% at the end of the quarter.

Retail term deposits saw strong growth, increasing 30.1% year-on-year to Rs 73,796 crore. Overall retail deposits, including CASA, rose 17.7% to Rs 1.22 lakh crore. Bulk deposits declined 6.9% year-on-year to Rs 43,797 crore. Meanwhile, the share of retail deposits in total deposits improved to 73.67% from 68.88% in the same period last year.

The bank reported a liquidity coverage ratio of about 131.76% as of March 31, 2026. Collection efficiency remained robust, with pan-bank efficiency, excluding NPAs, at 98.9% for March 2026, compared to 98.1% in December 2025.

Banking stocks have come under sharp pressure over the past three months, with most lenders underperforming the benchmark Nifty 50 amid a challenging macro backdrop marked by sustained foreign institutional investor (FII) outflows, escalating geopolitical tensions, and a surge in energy prices. Bandhan Bank is down 18% in the last 1 month.

The underperformance comes amid persistent FII selling, which has disproportionately impacted financials due to their heavy weightage in benchmark indices. At the same time, the escalation of the Iran-Israel conflict has triggered a spike in crude oil prices, raising concerns over inflation and delaying expectations of interest rate cuts by global central banks.
The lender has also been in the headlines after The Economic Times reported that Bandhan Financial Services is exploring exit options for its long-term investors, including GIC Ventures and International Finance Corporation.Also read: HDFC Bank Q4 business update: Lender reports 15% YoY growth in deposits, advances jump 12%

The report said the company has appointed Jefferies to assess investor interest, particularly from private equity funds. The move is also in line with regulatory requirements that mandate Bandhan Financial to reduce the promoter’s stake in the bank to 26% by 2030.

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