BANDHANBNK Q2 FY27 Results Analysis: PAT Jumps 456%, CASA Slips to 27%

BANDHANBNK's Q2 FY27 numbers came in strong, with revenue of Rs. 3,665.34 Cr (+16.92% YoY) and PAT growth of +455.77% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 delivered sequential operating momentum: PPOP up 14.60% QoQ to Rs.1,556 cr, PAT of Rs.622 cr (+456% YoY off a depressed base), cost-to-income down 393 bps QoQ, and GNPA at 3.11% with CAR at 18.32%. NIM guidance of ~6.2% was met and the ROA path to the 1.2-1.4% exit band remains on track, but the liability franchise is the swing factor: CASA slipped to 27% vs the 31% target and deposits grew ~560 bps slower than advances.

Key Investment Insights

Key Positives

• PAT of Rs.621.75 cr, up 455.77% YoY and 23.94% QoQ
• PPOP of Rs.1,556.41 cr, up 18.78% YoY and 14.60% QoQ
• NII grew 14.37% YoY to Rs.2,960.48 cr with interest expended nearly flat YoY (+1.01%)
• Cost-to-income improved ~393 bps QoQ to 57.54%
• GNPA fell to 3.11% (from 5.02% YoY); NNPA at 0.92%; PCR 86.7% vs 85.9% in Q1
• CAR improved to 18.32% with H1 profits included
• Retail Banking segment swung from a Rs.47.76 cr loss to a Rs.462.37 cr result YoY
• EEB collection efficiency at 99.3% with sequential improvement in EEB SMA 0/1/2 buckets

Risk Factors

• CASA ratio slipped to 27% from 29.4% in Q1, moving away from the 31% target
• Deposits grew 9.24% YoY vs advances 14.87%, missing management's deposit-growth-higher-than-advances goal
• Credit-cost proxy of 1.83% remains above the 1.6-1.7% end-FY27 target band and was flat/slightly up vs Q1's 1.79%
• Employee cost up 20.86% YoY and IT operating expenses up 22.24% YoY; H1 PPOP still down 2.16% YoY
• Treasury revenue fell 6.89% YoY with investment income declining
• Roughly 15% of H1 PAT came from the one-time Rs.215.67 cr IFR transfer booked in Q1