Bandhan Bank Limited (BANDHANBNK)
Small CapFinancial Services stocks · Small cap · NSE
Bandhan Bank is a universal bank in India, offering diversified financial solutions across lending segments. It has a deep pan-India footprint with 1,988 branches and 4,400 EEB Banking Units, serving 31.8 million customers. The bank focuses on operational excellence and digital adoption, with 98% of retail transactions now digital.
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 argues for patience, 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 30 Jun 2026
Average · 45/100Rev +3% YoY · PAT +35% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,631 Cr | +2.8% | +3.7% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹502 Cr | +35.0% | -6.0% |
| PAT margin | 8.9% | +212 bps | -93 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Bandhan Bank reports strong Q1FY27 PAT growth YoY (+34.9%) driven by improved asset quality (GNPA 3.1%, NNPA 0.9%), despite a QoQ PAT decline (-6.1%) and a sequential dip in total deposits and disbursements. Advances grew 16.4% YoY.
The bank continues its strategic shift towards a more diversified and secured loan book, reflected in improved asset quality metrics YoY. While overall advances growth is healthy YoY, the sequential decline in deposits and disbursements across key segments warrants close monitoring. Digital adoption is strong.
Gross Advances Mix by Segment (Jun'26)
Latest issuer-disclosed distribution across 4 reported categories.
Non-EEB Book Expansion
Non-EEB Book grew to ₹ 1,029.1 bn, up 27.4% YoY and 2.6% QoQ, indicating diversification beyond microfinance.
Increasing Secured Mix
Secured assets now comprise 56.8% of the book, up 473 bps YoY and 67 bps QoQ, strengthening portfolio resilience.
Regional Diversification
Share of Non-East in advances reached 62.1%, up 30 bps YoY and 19 bps QoQ, reducing concentration risk.
Digital Adoption & Innovation
98% of retail transactions are digital, and 92% of savings accounts are opened digitally, enhancing customer experience and efficiency.
Banking Outlets
Total banking outlets increased to 6,388 as of Jun'26, with 1,988 branches and 4,400 EEB Banking Units.
Net Addition
Added 44 banking outlets in Q1FY27.
Disbursement Momentum
Significant QoQ decline in EEB (-29.6%), Housing (-39.0%), and Retail (-30.8%) disbursements, indicating potential slowdown in new business generation.
Non-Interest Income Volatility
Total Other Income declined 21.7% QoQ and 16.8% YoY, partly due to a high base from treasury gains in Q1FY26.
Deposit Growth Volatility
Total deposits declined 0.9% QoQ, despite a 6.6% YoY growth, raising concerns about sequential funding stability.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
YoY comparison is crucial for assessing underlying business growth and seasonal trends in a financial services company. QoQ comparison is vital for tracking sequential momentum in disbursements, deposit accretion, asset quality trends, and operational efficiency.
AUM growth
Gross Advances ₹ 1,555.6 bn (16.4% YoY & 0.9% QoQ). Non-EEB Book grew 27.4% YoY & 2.6% QoQ.
Disbursements
EEB disbursements declined 29.6% QoQ and 4.5% YoY. Housing disbursements fell 39.0% QoQ and 17.6% YoY. Retail disbursements decreased 30.8% QoQ but grew 15.2% YoY.
NIM
NIM was 6.2% (-16 bps YoY & 2 bps QoQ).
Borrowing cost
Cost of funds (Excl Cap.) was 6.4% in Q1FY27, down from 7.0% YoY and 6.5% QoQ.
Leveraged Portfolio Resolution
Management maintains a "strong focus towards orderly resolution of leveraged portfolio."
Digital Platform Enhancement
Elevated mutual fund platform with UI/UX upgrades and capability enhancements.
New Digital Onboarding
Introduced Corporate Salary Account Journey for digital onboarding.
Merchant Solutions
Empowering merchants with Static QR linked with POS terminals for flexible payment acceptance.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Quarterly Disbursements Growth | Significant QoQ decline across EEB, Housing, and Retail segments. | Reversal of the sequential decline and sustained growth in disbursements across all key lending segments. |
| Total Deposit Growth (QoQ) | -0.9% QoQ decline. | Positive sequential growth in total deposits and continued improvement in retail deposit share and CASA ratio. |
| Non-EEB Book Growth | 27.4% YoY, 2.6% QoQ. | Sustained double-digit growth in non-EEB segments to further diversify the loan book. |
| Asset Quality Ratios (GNPA/NNPA) | GNPA 3.1%, NNPA 0.9%. | Maintenance of current low levels and further reduction in stress pool, particularly in the EEB segment. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
29BearishSMA20 -8.2% / mo · MACD −
Technical chart
BANDHANBNKdaily · 1Y · AUTO-10.9%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 37.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~9.0% over last month) — short-term momentum negative.
- RSI(14) at 37 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 25% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 9.9% below the 30-week proxy without full trend alignment.
- The 30-week proxy changed +1.6% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 20 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 20 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 5.5%.
- Cash flow contributes 7/10 to the score.
- Balance sheet contributes 4/15 to the score.
Main drags
- Altman Z is 1.8, in distress territory.
- Fair-value margin of safety is negative at -441.1%.
- 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: +2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
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 25th percentile of the scored universe and 42nd percentile within Financial Services. Main check: financial discipline is weak at 28/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Altman Z is 1.78.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 42nd pctile, median 62 · Small: 28th pctile, median 66
100 documents have extracted text, 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 5.2%.
- ▸6 years of positive FCF.
- ▸Debt/equity is 0.09.
Trust risks
- ▸Altman Z is 1.78.
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸Promoter holding fell 2.8%.
- ▸ROCE is low at 6.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 19.60
- P/B
- 1.04
- EV/EBITDA
- —
- Market Cap
- 26575.00Cr
Profitability
- ROE
- 4.88%
- ROCE
- 6.41%
- ROA
- 0.64%
- Dividend Y
- 0.91%
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
- 1.76
- Book Value
- 159.00
Cash Flow
- FCF Yield
- 5.49%
- FCF Positive Y
- 6/5
- OCF
- 1143.00 Cr
- EPS TTM
- 8.40
Shareholding
- Promoter Hold
- 37.54%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 36%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
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.