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  4. /Bandhan Bank Ltd
MomentumDeep Value

Bandhan Bank Ltd: Why Is It Outperforming Nifty 500?

Active
RS +30.9%Average5w StreakRe-Entry

In Week of May 10, 2026, Bandhan Bank Ltd (Banks - Private) is outperforming Nifty 500 with +30.9% relative strength. Fundamentals: Average. On a 5-week streak.

Bandhan Bank Ltd Key Facts

PE Ratio
27.1x
Market Cap
₹33,204 Cr
PAT Growth YoY
+68%
Revenue Growth YoY
-0%
RS vs Nifty 500
+30.9%
PB: Cycle BottomFalling Knife

What's Happening

🔻Earnings declining and PB falling — fundamentals deteriorating
🌐FII stake decreased 3.3% this quarter
🏛️DII accumulation — stake up 1.5%
🏦GNPA at 3.27% — stable asset quality
💰Trading 49% above estimated fair value — significant premium

Earnings Acceleration Triggers

1. Asset Quality Improvement
ImmediateHIGH
2. Interest Cost Reduction Deleveraging
Next 2-3 quartersHIGH
3. Value Added Product Mix Shift
OngoingMEDIUM

Key Risks

1. ₹120 crore incremental provision for gratuity due to new labour code notificatio
MEDIUM
2. Potential impact of Expected Credit Loss (ECL) implementation on SMA pool provis
LOW
3. Stress in the EEB (Microfinance) segment due to industry-level overleveraging
LOW

Sector-Specific Signals

Net Interest Margin5.9%
Gross NPA Ratio3.3%
CASA Ratio27%-400 bps
Provision Coverage Ratio70.8%

Key Numbers

PAT Growth YoY
+68%
Inflection Up
Revenue YoY
0%
Stable
GNPA
3.27%
Stable
Price to Book
1.3
Current Price
₹206
Dividend Yield
0.73%
Fundamental Score
48/100
Average
3Y PAT CAGR
-18%
Market Cap
33.2K Cr
Valuation
Significantly Overvalued

12-Week Performance

Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.

12 weeks agoThis week

Why Are Bandhan Bank Ltd's Earnings Accelerating?

Based on Q3 FY26 earnings • Updated Apr 18, 2026

Asset Quality Improvement

Expected: ImmediateHIGH confidence

What: Gross NPA: 3.3%

“Following this sale, our Gross NPA ratio improved sharply to 3.3%, and Net NPA declined to 1%.”

Interest Cost Reduction Deleveraging

Expected: Next 2-3 quartersHIGH confidence

What: Cost of Deposits: 20 bps reduction

Impact: 35-50 bps NIM gain

“we should see anywhere between a 35 basis points to a 50 basis points improvement in the NIMs because of this.”

Value Added Product Mix Shift

Expected: OngoingMEDIUM confidence

What: Secured Loan Mix: 57%

“our secured book, at 57% of overall advances, continued to gain share within the overall portfolio.”

Gross NPA reduction to 3.3%

HIGH confidence

What: Gross NPA reduction to 3.3%

“Following this sale, our Gross NPA ratio improved sharply to 3.3%, and Net NPA declined to 1%.”

What Are the Key Risks for Bandhan Bank Ltd?

Earnings deceleration risks from management commentary

₹120 crore incremental provision for gratuity due to new labour code notificatio

MEDIUM

Trigger: Formal notification of four Labour Codes by the Government of India on Nov 21, 2025.

Impact: PAT impact: ₹120 Cr

Management view: Provisioned in Q3; assessing further rules from states as they are announced.

Monitor: labor

Potential impact of Expected Credit Loss (ECL) implementation on SMA pool provis

LOW

Trigger: Draft guidelines for ECL have been released, requiring assessment of Stage 2 provisions.

Management view: Currently assessing and evaluating the draft guidelines; process is still on.

Monitor: regulatory

Stress in the EEB (Microfinance) segment due to industry-level overleveraging

LOW

Trigger: Industry-wide stress in microfinance affecting slippages, though bank claims its portfolio is superior.

Management view: Implementing guardrails (3-lender norm) and enhancing collection through digital tools.

Monitor: commodity

What Is Bandhan Bank Ltd's Management Saying?

Key quotes from recent conference calls

“we have a guidance for the next two, three years, where we have said that we should come to around 2.5%. [Previous Credit Cost guidance]”
“We introduced 18-month and 36-month tenure options in group loan... expanded repayment flexibility by offering bi-weekly and monthly repayment frequency. [Initiative: EEB Product Tweaks]”
“we have created an incremental provision of Rs 120 crores towards gratuity during the quarter... arises from the change in wage definition. [Risk (labor): MEDIUM]”
“the assessment for the new guidelines of ECL is still under process. So, we will not be able to have the details. [Risk (regulatory): LOW]”

What Did Bandhan Bank Ltd Report This Quarter?

Headline numbers from the latest earnings call

Revenue

₹2,688 Cr

QoQ +3.8%

Why: Sequential improvement was supported by a nearly 20-bps reduction in the cost of deposits which offset yield compression.

Net Interest Income (NII) showed sequential recovery despite year-on-year moderation.

EBITDA

₹1,445 Cr

Why: Operating profit was impacted by a ₹120 crore incremental provision for gratuity due to new labour codes.

Operating profit (PPOP) was resilient despite regulatory-driven one-off employee costs.

PAT

₹206 Cr

YoY -51.6%QoQ +83.9%

Why: Profitability reflected the combined impact of one-off items and the cost of reducing NPAs through ARC sales.

PAT recovered from the Q2 trough but remains lower YoY due to aggressive book cleansing.

Other Highlights

• Gross NPA ratio improved sharply to 3.3% from 5.1% in the previous quarter.

• Secured book share increased to 57% of overall advances.

• Retail term deposits grew by over 36% YoY, reaching ₹1.57 lakh crores.

What Sector Metrics Matter for Bandhan Bank Ltd?

Sub-sector-specific signals from the latest concall — each with management's stated reason for the change

Net Interest Margin

5.9%

QoQ +10 bps

Why: Supported by a nearly 20-bps reduction in the cost of deposits.

Gross NPA Ratio

3.3%

QoQ -180 bps

Why: Primarily driven by the sale of ₹3,165 crores of NPAs to ARCs.

CASA Ratio

27%

YoY -400 bpsQoQ -100 bps

Why: Outflow of rate-sensitive high-value balances following savings rate reductions.

Provision Coverage Ratio

70.8%

Why: Effective PCR is 74.2% when including provisions against Security Receipts.

Credit Cost

3.3%

QoQ -10 bps

Why: Moderated slightly as slippages declined broad-based.

Gross Slippages

₹1,314 Cr

QoQ -17.4%

Why: Largest contribution to improvement came from the EEB segment.

Tier-1 Capital

17.0%

Why: Capital position remains robust to support future growth.

Cost of Deposits Reduction

20 bps

QoQ -20 bps

Why: Moderation of outlier interest rates and maturity of high-cost deposits.

What Is Bandhan Bank Ltd's Management Guidance?

Forward-looking targets from management for FY26

Revenue Growth Target

6%

OPM Guidance

6%

Revenue Outlook

6.0%

Margin Outlook

NIM trajectory to improve

Volume

REAFFIRMED

Management Tone: BULLISH

Guidance Changes

LOWERED

Credit Cost (FY27 Exit): 2.5% → 1.6% to 1.7%

How Fast Is Bandhan Bank Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue0%+11%Stable
PAT (Net Profit)+68%-18%Inflection Up

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.

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← Back to Banks - PrivateDashboard

Frequently Asked Questions: Bandhan Bank Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Bandhan Bank Ltd's latest quarterly results?

Bandhan Bank Ltd's latest quarterly results (Mar 2026) show

  • PAT Growth YoY: +67.9% (turning around (inflection up))
  • Revenue Growth YoY: -0.1%
  • Net Interest Margin: 0.00%
  • Gross NPA: 3.27%

Is Bandhan Bank Ltd's profit growing or declining?

Bandhan Bank Ltd's profit is growing with an turning around (inflection up) trend.

  • PAT Growth YoY: +67.9% (latest quarter)
  • PAT Growth QoQ: +159.2% (sequential)
  • 3-Year PAT CAGR: -17.7%
  • Trend: Turning around (inflection up) — consistent growth pattern

What is Bandhan Bank Ltd's revenue growth trend?

Bandhan Bank Ltd's revenue growth trend is stable.

  • Revenue Growth YoY: -0.1%
  • Revenue Growth QoQ: -0.1% (sequential)
  • 3-Year Revenue CAGR: +10.9%

What is Bandhan Bank Ltd's asset quality trend?

Bandhan Bank Ltd's asset quality trend is stable.

  • Gross NPA: 3.27%
  • Net NPA: 0.97%
  • GNPA Change YoY: -1.4% bps

What is Bandhan Bank Ltd's 3-year profit and revenue CAGR?

Bandhan Bank Ltd's long-term compounding rates

  • 3-Year Profit CAGR: -17.7%
  • 3-Year Revenue CAGR: +10.9%

Is Bandhan Bank Ltd's growth accelerating or decelerating?

Bandhan Bank Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.

  • YoY Acceleration: +119.5% bps
  • Sequential Acceleration: 0.0% bps
  • Margin Warning: Operating margins are under pressure

What is Bandhan Bank Ltd's trailing twelve month (TTM) performance?

Bandhan Bank Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹1,000 Cr
  • TTM PAT Growth: -55.4% YoY
  • TTM Revenue: ₹22,000 Cr
  • TTM Revenue Growth: -1.2% YoY

Is Bandhan Bank Ltd overvalued or undervalued?

Bandhan Bank Ltd appears significantly overvalued based on our fair value analysis.

  • Valuation Signal: Significantly Overvalued
  • Current PE: 27.1x
  • Price-to-Book: 1.3x

What is Bandhan Bank Ltd's current PE ratio?

Bandhan Bank Ltd's current PE ratio is 27.1x.

  • Current PE: 27.1x
  • Market Cap: 33.2K Cr
  • Dividend Yield: 0.73%

How does Bandhan Bank Ltd's valuation compare to its history?

Bandhan Bank Ltd's current PE is 27.1x.

  • Current PE: 27.1x
  • Valuation Assessment: Significantly Overvalued

What is Bandhan Bank Ltd's price-to-book ratio?

Bandhan Bank Ltd's price-to-book ratio is 1.3x.

  • Price-to-Book (P/B): 1.3x
  • Book Value per Share: ₹157
  • Current Price: ₹206

Is Bandhan Bank Ltd a fundamentally strong company?

Bandhan Bank Ltd is rated Average with a fundamental score of 47.5/100. This score is calculated from objective financial metrics

  • PAT Growth YoY: +67.9% (20% weight)
  • PAT Growth QoQ: +159.2% (15% weight)
  • Earnings trend: inflection_up (5% weight)

Is Bandhan Bank Ltd debt free?

Bandhan Bank Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹14,000 Cr

What is Bandhan Bank Ltd's return on equity (ROE) and ROCE?

Bandhan Bank Ltd's return ratios over recent years

  • FY2024: ROE 11.0%
  • FY2025: ROE 12.0%
  • FY2026: ROE 5.0%

Is Bandhan Bank Ltd's cash flow positive?

Bandhan Bank Ltd's operating cash flow is positive (FY2026).

  • Cash from Operations (CFO): ₹1,000 Cr
  • Free Cash Flow (FCF): ₹1,000 Cr
  • CFO/PAT Ratio: 93% (strong cash conversion)

What is Bandhan Bank Ltd's dividend yield?

Bandhan Bank Ltd's current dividend yield is 0.73%.

  • Dividend Yield: 0.73%
  • Current Price: ₹206

Who holds Bandhan Bank Ltd shares — promoters, FII, DII?

Bandhan Bank Ltd's shareholding pattern (Mar 2026)

  • Promoters: 39.0%
  • FII (Foreign): 22.1%
  • DII (Domestic): 22.3%
  • Public: 16.6%

Is promoter holding increasing or decreasing in Bandhan Bank Ltd?

Bandhan Bank Ltd's promoter holding has decreased recently.

  • Current Promoter Holding: 39.0% (Mar 2026)
  • Previous Quarter: 39.7% (Dec 2025)
  • Change: -0.76% (decreasing — worth monitoring)

How long has Bandhan Bank Ltd been outperforming Nifty 500?

Bandhan Bank Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.

Is Bandhan Bank Ltd a new momentum entry or an established outperformer?

Bandhan Bank Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.

What are the growth catalysts for Bandhan Bank Ltd?

Bandhan Bank Ltd has 4 key growth catalysts identified from recent earnings analysis

  • Asset Quality Improvement — Aggressive ARC sales and improved collection efficiency in the EEB segment.
  • Interest Cost Reduction Deleveraging — High-cost bulk and retail deposits are maturing and being replaced by lower-rate liabilities.
  • Value Added Product Mix Shift — Deliberate shift toward housing, commercial vehicles, and gold loans to reduce microfinance volatility.
  • Gross NPA reduction to 3.3% — Driven by a portfolio sale of ₹3,165 crores of NPAs to ARCs.

What are the key risks in Bandhan Bank Ltd?

Bandhan Bank Ltd has 3 key risks worth monitoring

  • [MEDIUM] ₹120 crore incremental provision for gratuity due to new labour code notificatio — Formal notification of four Labour Codes by the Government of India on Nov 21, 2025.
  • [LOW] Potential impact of Expected Credit Loss (ECL) implementation on SMA pool provis — Draft guidelines for ECL have been released, requiring assessment of Stage 2 provisions.
  • [LOW] Stress in the EEB (Microfinance) segment due to industry-level overleveraging — Industry-wide stress in microfinance affecting slippages, though bank claims its portfolio is superior.

What did Bandhan Bank Ltd's management say in the latest earnings call?

In Q3 FY26, Bandhan Bank Ltd's management highlighted

  • "we have a guidance for the next two, three years, where we have said that we should come to around 2.5%. [Previous Credit Cost guidance]"
  • "We introduced 18-month and 36-month tenure options in group loan... expanded repayment flexibility by offering bi-weekly and monthly repayment frequen..."
  • "we have created an incremental provision of Rs 120 crores towards gratuity during the quarter... arises from the change in wage definition. [Risk (la..."

What is Bandhan Bank Ltd's management guidance for growth?

Bandhan Bank Ltd's management has provided the following forward guidance for FY26

  • Revenue growth target: 6%
  • OPM guidance: 6%
  • Capex plan: Not Given for Branch expansion and digital capability enhancement
  • Management tone: bullish
  • Milestone: [LOWERED] Credit Cost (FY27 Exit): 2.5% → 1.6% to 1.7%

What sector-specific metrics matter most for Bandhan Bank Ltd?

Bandhan Bank Ltd's most important sub-sector-specific KPIs from the latest concall

  • Net Interest Margin: 5.9% (QoQ +10 bps) — Supported by a nearly 20-bps reduction in the cost of deposits.
  • Gross NPA Ratio: 3.3% (QoQ -180 bps) — Primarily driven by the sale of ₹3,165 crores of NPAs to ARCs.
  • CASA Ratio: 27% (YoY -400 bps) (QoQ -100 bps) — Outflow of rate-sensitive high-value balances following savings rate reductions.
  • Provision Coverage Ratio: 70.8% — Effective PCR is 74.2% when including provisions against Security Receipts.
  • Credit Cost: 3.3% (QoQ -10 bps) — Moderated slightly as slippages declined broad-based.
  • Gross Slippages: ₹1,314 Cr (QoQ -17.4%) — Largest contribution to improvement came from the EEB segment.

Is Bandhan Bank Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Bandhan Bank Ltd may be worth studying

  • Earnings growing at +67.9% YoY
  • Cash flow is positive — CFO ₹1,000 Cr

What is the investment thesis for Bandhan Bank Ltd?

Bandhan Bank Ltd investment thesis summary:

Research Signals (Bull Case)

  • Growth catalyst: Asset Quality Improvement

Risk Factors (Bear Case)

  • Margins under pressure
  • Appears significantly overvalued
  • Key risk: ₹120 crore incremental provision for gratuity due to new labour code notificatio

What is the future outlook for Bandhan Bank Ltd?

Bandhan Bank Ltd's forward outlook based on current data signals

  • Earnings Trend: turning around (inflection up)
  • Revenue Trend: stable
  • Valuation: Significantly Overvalued
  • Key Catalyst: Asset Quality Improvement
  • Key Risk: ₹120 crore incremental provision for gratuity due to new labour code notificatio

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.