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Bandhan Bank Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤22nd Jan 26

Summary : Bandhan Bank reported strong Q3 FY26 results with 84% QoQ PAT growth, improved asset quality, and strategic focus on digital initiatives for future growth.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total Expenditure (4+5) for Q3 FY26: Rs. 4,67,724.07 lakhs.
  2. Interest Expended for Q3 FY26: Rs. 2,74,293.85 lakhs.
  3. Operating Expenses for Q3 FY26: Rs. 1,93,430.22 lakhs (Employees Cost: Rs. 1,13,346.28 lakhs, Other Operating Expenses: Rs. 80,083.94 lakhs).
  4. Provisions (other than tax) & Contingencies for Q3 FY26: Rs. 1,15,462.81 lakhs.
  5. Total Income (1+2) for Q3 FY26: Rs. 6,12,224.61 lakhs.
  6. Interest Earned for Q3 FY26: Rs. 5,43,123.92 lakhs.
  7. Other Income for Q3 FY26: Rs. 69,100.69 lakhs.
  8. Segment Revenue for Q3 FY26: Treasury Rs. 72,917.10 lakhs, Retail Banking Rs. 5,49,199.05 lakhs, Wholesale Banking Rs. 70,384.50 lakhs, Other Banking Operations Rs. 12,751.63 lakhs.
  9. Provisions for contingencies (other than tax) for Q3 FY26 were Rs. 1,15,462.81 lakhs.
  10. Total Segment Assets as of Dec 31, 2025: Rs. 1,96,13,101.61 lakhs.
  11. Total Segment Liabilities as of Dec 31, 2025: Rs. 1,71,03,882.10 lakhs.
  12. Paid up equity share capital as of Dec 31, 2025: Rs. 1,61,097.14 lakhs.
  13. Capital Adequacy Ratio (CRAR) as of Dec 31, 2025: 17.8% (including profits).
  14. Gross NPA as of Dec 31, 2025: 3.33%.
  15. Net NPA as of Dec 31, 2025: 0.99%.
  16. The Bank does not have any subsidiary, associate, or joint venture, hence consolidated financial results are not required.

Corporate Overview

  1. Presence in 35 of 36 states and union territories in India.
  2. Assessing and accounting for the incremental impact of new Labour Codes on employee benefit obligations, specifically gratuity.
  3. Universal bank focused on financial inclusion, serving underserved semi-urban and rural customers with loans, deposits, and digital banking services.
  4. Positive, highlighting strengthening fundamentals, steady turnaround, and commitment to building a strong, resilient, and diversified bank through digital initiatives for sustainable growth.
  5. Individuals and small businesses, particularly in semi-urban and rural areas, focusing on the underserved segment.
  6. Treasury
  7. Retail Banking
  8. Wholesale Banking
  9. Other Banking Operations
  10. Distribution network of over 6,350 outlets, including 1,831 branches, 4,536 banking units, and 438 ATMs.
  11. Over 74,500 employees.
  12. Accelerate multiple digital initiatives to enhance customer experience, operational efficiency, and scalability.

Risk Factors

  1. Impact of new Labour Codes.
  2. Project implementation delays or defaults.
  3. Significant provisions for contingencies.
  4. Maintaining asset quality improvements.

Key Drivers

  1. Profit after tax up 84% QoQ.
  2. Gross and Net NPA significantly reduced.
  3. Deposits and advances show growth.
  4. Digital initiatives to enhance efficiency.

Auditor’s Report

  1. Unmodified review conclusion on the unaudited financial results for the quarter and nine months ended December 31, 2025.
  2. Unmodified opinion on the audited financial results for the year ended March 31, 2025.

Board Commentary

  1. Incremental impact on employee benefit obligations due to new Labour Codes, leading to an increase in gratuity liability.
  2. Estimated and recognized an additional liability of Rs. 12,039.04 lakhs towards past service cost on gratuity due to new Labour Codes, included under employee cost.
  3. 35 projects under implementation with Rs. 91,922.21 lakhs outstanding at quarter end.
  4. 5 accounts with resolution process invoked due to extension in original/extended DCCO, totaling Rs. 27,652.21 lakhs.

Corporate Governance

  1. Audit Committee recommended the results, which were then approved by the Board of Directors.

Management Discussion & Analysis

Future Strategy

  1. Accelerate multiple digital initiatives to enhance customer experience, operational efficiency, and scalability.
  2. Commitment to building a strong, more resilient, and diversified bank for sustainable and profitable growth.

Operational Focus Areas

  1. Enhancing customer experience, operational efficiency, and scalability through digital initiatives.

Performance Drivers

  1. 11% YoY growth in deposits to Rs. 1.57 lakh crore.
  2. 10% YoY growth in gross advances to Rs. 1.45 lakh crore.
  3. Significant improvement in asset quality with GNPA reducing to 3.3% from 5.0% QoQ and Net NPA to 1.0% from 1.4% QoQ.
  4. 84% QoQ growth in Profit After Tax to Rs. 206 crore.

Risk Control Measures

  1. Monitoring the finalization of Central and State rules for Labour Codes and will appropriately account for impacts upon clarification/notification.

Critical Risks

  1. Potential incremental impact on employee benefit obligations due to new Labour Codes.
  2. Risks associated with projects under implementation, including resolution processes for extended DCCO accounts.
Bandhan Bank Ltd (BANDHANBNK) Quarterly Report Analysis & Insights | Dhanarthi