Bandhan Bank has unveiled its strategic growth guidance for the next two to three years during a recent conference call, outlining ambitious expansion plans across key business segments. The bank's management has set clear targets that reflect confidence in its operational capabilities and market positioning.

Growth Targets and Strategic Direction

The bank has established a comprehensive growth framework with specific targets for its lending portfolio. The management expects to achieve steady expansion while maintaining operational efficiency and risk management standards.

Lending Portfolio Expansion

Bandhan Bank's guidance indicates a robust 15% to 17% CAGR for advances over the projected timeframe. This growth trajectory suggests the bank's commitment to expanding its lending operations while maintaining prudent credit standards. The targeted growth rate reflects the management's confidence in identifying and capitalizing on lending opportunities across various customer segments.

Deposit Growth Strategy

The bank has projected that deposit growth will outpace advances growth during the guidance period. This strategic approach indicates a focus on strengthening the liability franchise and improving the overall credit-deposit ratio. Higher deposit growth relative to advances suggests the bank's emphasis on building a stable funding base to support future expansion plans.

Strategic Implications

The guidance provided during the conference call reflects Bandhan Bank's balanced approach to growth and risk management. By targeting higher deposit growth compared to advances, the bank aims to enhance its liquidity position and reduce dependence on external funding sources. This strategy could contribute to improved net interest margins and overall financial stability during the projected period.

Bandhan Bank has provided updated guidance on its credit cost projections during a recent conference call, outlining its strategic targets for the upcoming fiscal periods. The bank's management has maintained its overall credit cost guidance while setting specific parameters for different business segments.

Credit Cost Guidance Framework

The bank has established a comprehensive credit cost guidance structure that differentiates between overall operations and specific business segments. The guidance reflects the institution's approach to managing credit risk across its diverse portfolio.

Segment-Specific Targets

The Emerging Entrepreneurs Business (EEB) segment has been assigned a higher credit cost target range of 2.5% to 3.0% by the end of FY27. This segment-specific guidance indicates the bank's recognition of varying risk profiles across different customer categories and business lines.

Strategic Outlook

The maintained guidance suggests the bank's confidence in its risk management framework and ability to control credit costs within projected parameters. The differentiated approach between overall operations and the EEB segment demonstrates a nuanced understanding of portfolio risk characteristics across various business verticals.