Following a strong recovery in the final quarter of FY26, Bandhan Bank has outlined a strategic roadmap for the 2026–27 fiscal year. Managing Director and CEO Partha Pratim Sengupta expressed confidence in a “repaired balance sheet” and a shift toward more organic, sustainable growth.
Key Performance Targets for FY27:
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Credit Growth: The bank is targeting a minimum of 15% credit growth, with deposits expected to grow at a similar or slightly higher pace.
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Return on Assets (ROA): Target set at 1.5% to 1.6% (an exit guidance for FY27), up from the 1.1% achieved in Q4 FY26.
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Return on Equity (ROE): Aiming to cross the 15% mark.
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Asset Quality: Credit costs are projected to decline further to 1.6%–1.7% as the quality of the microfinance (EEB) portfolio stabilizes.
Q4 FY26 Financial Highlights (The Foundation for FY27):
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Net Profit: Surged 68% YoY (and 160% QoQ) to ₹534 crore, driven primarily by a sharp reduction in provisions.
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NIM Recovery: Net Interest Margins improved sequentially to 6.2%, aided by the maturity of high-cost deposits and fewer interest reversals.
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Asset Quality Improvement: * Gross NPA: Fell to 3.27% (from 4.71% a year ago).
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Net NPA: Improved to 0.97%.
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Shift to Secured Lending: The bank continues to diversify, with the secured loan book now constituting 56.2% of total advances.
Market Reaction:
Investor sentiment turned highly bullish following the earnings announcement and the aggressive FY27 guidance. Bandhan Bank’s stock skyrocketed nearly 12%, hitting a 52-week high of ₹200.89 on the NSE on April 29, 2026.
Strategic Focus:
The bank is prioritizing a “retail-first” deposit strategy, having pruned high-cost bulk deposits in favor of granular retail savings. While the current CASA ratio stands at 29.3%, the bank has set a near-term milestone of 31%.
CEO Sengupta noted that while global uncertainties and West Asian conflicts remain “watchful variables,” the bank’s internal recovery is currently on a structural and credible path.
