Bandhan Bank’s funding story got complicated in Q2 FY27. The lender reported total deposits of ₹1,72,689 crore, up 9.2% year-on-year, but the quality of that growth is where the trouble lies. The CASA ratio—current and savings accounts—slid to 26.71% from 29.40% in June. That’s a nearly 270-basis-point drop in a single quarter.
Meanwhile, loan growth remained steady but unexciting. Advances hit ₹1,58,335 crore, up 13.1% YoY, but only 1.8% sequentially. The bank is leaning harder on retail term deposits, which jumped 16.8% YoY to ₹79,340 crore. Bulk deposits also surged 10% QoQ to ₹47,218 crore. This shift means the bank is paying more for deposits, a headwind for net interest margins in the coming quarters.
Asset quality held firm. Collection efficiency stayed at 98.9%, unchanged from the previous quarter. The emerging entrepreneurs segment improved slightly to 98.6%, while the non-EEB segment dipped to 99.2%. Liquidity coverage ratio stood at 137.88%, well above regulatory minimums.
The market reaction was muted. Bandhan Bank shares ended 1.64% higher at ₹175.30 on Thursday. The stock has already climbed over 20% this year, so the Q2 update didn’t dent investor confidence. Watch for the next quarter’s CASA trend—any further slide could pressure margins.