Company Update : Bandhan Bank by Motilal Oswal Financial Services Ltd
Tepid business growth; CASA ratio remains steady at 29.4%
* Gross advances (on-book + PTC) grew 0.8% QoQ (up 16.4% YoY) to ~INR1.56t, lower than our estimated net advances growth of 20.2% YoY/2.9% QoQ.
* Deposits grew 6.6% YoY/declined 0.9% QoQ to INR1.65t, missing our estimates of 10.4% YoY/2.7% QoQ. The bank has reduced its reliance on bulk deposits, which declined 12.7% YoY (down 2% QoQ).
* CASA deposits posted muted growth of 0.6% QoQ (up 15.8% YoY). As a result, CASA ratio stood steady at 29.4% (vs 29.3% in 4QFY26).
* Retail deposits (including CASA) grew 15.6% YoY/declined 0.5% QoQ. The proportion of retail deposits marginally increased to 73.96% (vs 73.67% in 4QFY26). LCR for the bank stands at 146.65%.
* On the asset quality front, overall CE remains consistent at 98.9%, with collection efficiency in EEB at 98.5% and non-EEB at 99.4%.
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