Bandhan Bank Limited — Cyborg Score 5/10

Mixed
Banking (Private Sector Banks)

Strategic Profile

Originally the largest NBFC-MFI in India, the company received a banking license from the RBI in 2014 and commenced operations in 2015, transferring its entire microfinance portfolio to the bank. The bank operates through a distribution network spanning nearly 6,350 outlets with over 3.23 crore customers. The bank maintains total deposits of ₹1,580.7B and loans of ₹1,345.9B with a Net Interest Margin of 7.1%.

Cyborg Score Rationale

The bank's net profit plunged 88.1% year-on-year to Rs 112 crore in Q2 FY26 from Rs 937 crore in Q2 FY25, primarily due to steep provisions, with net total income declining 11.5% YoY. Share price has increased by 9.6% over the past six months and 33.60% over the last year. Financial performance remains volatile with asset quality concerns offsetting market recovery.

Top Insights

  • RBI approved SBI Mutual Fund to acquire up to 9.99% stake in Bandhan Bank (Feb 2026), signaling institutional confidence despite recent challenges.
  • Loans and advances grew 10% year-on-year to Rs 145,227 crore in Q3 FY26, demonstrating strong credit expansion.
  • High level of bad loans at 5.2% indicates asset quality stress requiring management attention.
  • Promoter holding stands at 39.7% with FIIs at 22.3% and DIIs at 18.9%, showing strong institutional participation.

Named Competitors

  • City Union Bank — Private sector bank focused on South India
  • AU Small Finance Bank — Small finance bank serving underbanked segments
  • Suryoday Small Finance Bank — Small finance bank with microfinance roots

Recent Developments

  • (Feb 2026) RBI approved SBI Mutual Fund to acquire up to 9.99% stake in Bandhan Bank
  • (Feb 2026) Investor meet participation at Kotak Chasing Growth 2026 conference in Mumbai
  • (Feb 2026) ESG rating assigned as 67 (Aspiring) by NSE Sustainability for FY2025

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