Bandhan Bank Q3 Results: Key Highlights
Private sector lender Bandhan Bank on Sunday reported a 10 per cent year-on-year growth in its loans and advances, totalling Rs 1,45,227 crore for the third quarter ended December 31, 2025.
The bank had reported loans and advances worth Rs 1,32,019 crore in the corresponding period of the previous fiscal. This growth in loans and advances is a positive sign for the bank, indicating an increase in credit demand from its customers.
Deposits Rise by 11.1%
According to the provisional business update submitted to the stock exchanges, the bank’s total deposits rose by 11.1 per cent to Rs 156,723 crore during the quarter under review, compared to Rs 141,002 crore as of December 31, 2024.
This growth in deposits is a testament to the bank’s ability to attract and retain customers, and to provide them with a range of deposit products that meet their needs. For more information on deposit products, you can visit our website.
Retail Deposits Drive Growth
The bank’s retail franchise continued to show strength, with retail deposits (including CASA) increasing by 17.2 per cent year-on-year to Rs 1,13,420 crore. Retail term deposits witnessed a sharp surge of 35.8 per cent, reaching Rs 70,690 crore as against Rs 52,063 crore in the year-ago period.
This growth in retail deposits is a positive sign for the bank, as it indicates that the bank is able to attract and retain retail customers. For more information on retail banking, you can visit our website.
CASA Deposits Decline
However, the lender’s low-cost CASA (Current Account Savings Account) deposits declined by 4.5 per cent to Rs 42,730 crore, down from Rs 44,735 crore in the December 2024 quarter. This led to a contraction in the CASA ratio to 27.26 per cent, compared to 31.73 per cent in the same period last year and 27.97 per cent in the preceding September quarter.
This decline in CASA deposits is a negative sign for the bank, as it indicates that the bank is losing its low-cost deposit base. For more information on CASA deposits, you can visit our website.
Bulk Deposits Decrease
Bulk deposits also saw a decrease of 2.0 per cent year-on-year, standing at Rs 43,303 crore. The ratio of bulk to total term deposits stood at 37.99 per cent as of December 31, 2025, showing a significant reduction from 45.92 per cent in the corresponding period last year.
This decline in bulk deposits is a negative sign for the bank, as it indicates that the bank is losing its high-value deposit base. For more information on bulk deposits, you can visit our website.
Collection Efficiency Improves
On the operational front, Bandhan Bank reported an improvement in its pan-bank collection efficiency. The overall collection efficiency (excluding NPAs) stood at 98.1 per cent for the month of December 2025, up from 97.8 per cent in September 2025.
This improvement in collection efficiency is a positive sign for the bank, as it indicates that the bank is able to recover its loans and advances more efficiently. For more information on collection efficiency, you can visit our website.
Liquidity Position Remains Comfortable
The bank’s liquidity position remained comfortable with the Liquidity Coverage Ratio (LCR) standing at approximately 149.14 per cent as of December 31.
This comfortable liquidity position is a positive sign for the bank, as it indicates that the bank has sufficient liquidity to meet its short-term obligations. For more information on liquidity coverage ratio, you can visit our website.
Conclusion
In conclusion, Bandhan Bank’s Q3 results show a mixed picture. While the bank’s loans and advances and deposits have grown, its CASA deposits and bulk deposits have declined. The bank’s collection efficiency has improved, and its liquidity position remains comfortable.
For investors and traders, it is essential to keep an eye on the bank’s future performance and to analyze the trends in the banking sector. You can visit our website for more information on banking sector and stock market analysis.