Bandhan Bank sees INR-12.50-bln impact over 5 yrs on transition to ECL norms
This story was originally published at 19:24 IST on 28 April 2026
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--Bandhan Bank: See impact of INR 12.50 bln on transition to ECL norms
--CONTEXT: Comments by Bandhan Bank's mgmt at media call post Q4 earnings
--Bandhan Bank: Expect 20-30 bps of improvement in NIM in FY27
--Bandhan Bank: Expect NIM to improve to 6.4-6.5% in FY27
--Bandhan Bank: No impact of West Asia war so far, monitoring developments
--Bandhan Bank: Aim to increase gold loan disbursals in FY27
--Bandhan Bank: Focused on cutting reliance on bulk deposit, mobilise retail
MUMBAI - Bandhan Bank expects an impact of INR 12.50 billion from the transition to expected credit loss-based provisioning over five years, its management said Tuesday at a media call after the March quarter results, adding that they expect an impact of INR 2.5 billion per year. The comments came after the Reserve Bank of India issued final expected credit loss norms and confirmed their implementation on Apr. 1, 2027.
The bank's net profit jumped nearly 68% on year to INR 5.34 billion in the March quarter, thanks to a 46% fall in provisions for bad loans to INR 6.77 billion. The bank's interest income rose marginally to INR 28 billion in Jan-Mar from INR 27.6 billion in the corresponding quarter a year ago.
Bandhan Bank's net interest margin improved 30 basis points on quarter to 6.2% as of Mar. 31. The lender expects its margins to improve 20–30 bps to 6.4–6.5% in the current financial year started Apr. 1, the management said.
Talking about the business strategy, the management said that the bank was focused on cutting reliance on bulk deposits and mobilising retail deposits. Retail deposits accounted for 74% of the bank's total deposits of INR 1.66 trillion at the end of March. In the March quarter, Bandhan Bank lowered the share of bulk deposits to 29% from 31% in the corresponding quarter a year ago.
Going ahead, the bank aims to increase gold loan disbursals in 2026-27 (Apr-Mar), the management said. Gold loans accounted for nearly 17% of the lender's retail assets as of March. The bank's gross advances grew nearly 13% on year to INR 1.54 trillion as of Mar. 31.
So far, the bank has not seen any impact on its business due to the West Asia war, the management said. However, it is watchful of the developments and remains cautious, the management added. Shares of Bandhan Bank, which detailed its earnings post-market hours, ended 1.8% lower Tuesday at INR 178.65 on the National Stock Exchange. End
Reported by Durgesh Nandan and Krity Ambey
Edited by Akul Nishant Akhoury
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