Bandhan Bank Shares Rise 3.9% As Q3 Loans Grow 10% To ₹1.45L Crore, Deposits Up 11.1%

Bandhan Bank shares surged 3.90% to touch an intraday high of ₹150.05 during Monday's trading session, following the release of its provisional business update for the quarter ended December 31, 2025. The private sector lender demonstrated strong retail deposit momentum with retail deposits growing 17.20% year-on-year to ₹1,13,420 crore, now comprising 72.37% of total deposits, while maintaining robust liquidity coverage ratio at 149.14%.

Strong Stock Performance and Market Response

The bank's shares responded positively to the quarterly business update, with investors showing confidence in the steady credit expansion and operational improvements.

Market Metrics:	Current Status
Intraday High:	₹150.05
Stock Gain:	3.90%
52-Week High:	₹192.48
P/E Ratio:	18.95
P/B Ratio:	0.96
RSI (14-day):	43.10

The stock is currently trading at ₹150.05, significantly below its 52-week high of ₹192.48, with a price-to-earnings ratio of 18.95 and price-to-book ratio of 0.96, suggesting relatively reasonable valuation compared to book value.

Outstanding Loan Growth and Deposit Performance

Bandhan Bank reported steady lending momentum with loan growth returning to double digits, supported by strong deposit mobilization across retail segments.

Business Metrics:	Dec 31, 2024	Sep 30, 2025	Dec 31, 2025	YoY Growth	QoQ Growth
Loans & Advances:	₹1,32,019 cr	₹1,40,041 cr	₹1,45,227 cr	10.00%	3.70%
Total Deposits:	₹1,41,002 cr	₹1,58,075 cr	₹1,56,723 cr	11.10%	-0.90%
Retail Deposits:	₹96,798 cr	₹1,12,127 cr	₹1,13,420 cr	17.20%	1.20%
CASA Deposits:	₹44,735 cr	₹44,211 cr	₹42,730 cr	-4.50%	-3.30%

Loans and advances grew 10.00% year-on-year to ₹1,45,227 crore, while total deposits increased 11.10% to ₹1,56,723 crore, though deposits declined marginally by 0.90% quarter-on-quarter.

Strategic Retail Focus and Deposit Mix Transformation

The bank's retail deposit strategy delivered impressive results, with retail deposits now comprising 72.37% of total deposits, reflecting successful execution of its retail-focused strategy.

Deposit Composition:	Dec 31, 2024	Sep 30, 2025	Dec 31, 2025
Retail to Total Deposits:	68.65%	70.93%	72.37%
CASA Ratio:	31.73%	27.97%	27.26%
Bulk to Total Term Deposits:	45.92%	40.35%	37.99%

Retail term deposits emerged as the standout performer with 35.80% year-on-year growth to ₹70,690 crore. However, the CASA ratio declined to 27.26% from 31.73% year-on-year, indicating higher dependence on costlier deposits which could impact margins.

Improved Operational Efficiency and Technical Outlook

Bandhan Bank showed enhanced collection efficiency across all business segments, with pan-bank collection efficiency improving to 98.10% from 97.80% in the previous quarter.

Collection Efficiency:	Sep 30, 2025	Dec 31, 2025
EEB Segment:	97.50%	98.00%
Non-EEB Segment:	98.50%	98.30%
Pan Bank:	97.80%	98.10%

The Emerging Entrepreneurs Business segment showed notable improvement to 98.00% from 97.50%, providing additional comfort to investors and supporting the stock's upward movement. From a technical perspective, the 14-day Relative Strength Index stands at 43.10, placing the stock in neutral zone. The bank is trading below four out of its eight key simple moving averages, indicating a mildly bearish bias in the short to medium term, though the strong quarterly performance has provided positive momentum.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.90%	-4.61%	-19.58%	-10.52%	-2.10%	-58.30%

Bandhan Bank has successfully concluded the sale of substantial unsecured non-performing asset (NPA) and written-off loan portfolios to Asset Reconstruction Companies (ARCs), marking a significant milestone in the bank's asset quality management strategy. The transactions, approved by the board of directors, involved two separate portfolio sales totaling ₹6,872.36 crore in outstanding principal.

ARCIL Transaction Details

The first major transaction involved the sale of an unsecured NPA portfolio to Asset Reconstruction Companies (India) Ltd (ARCIL) through the Swiss Challenge Method. ARCIL emerged as the winning bidder for this severely distressed portfolio.

Parameter	Details
Principal Outstanding	₹3,165.25 crore (as of Nov 30, 2025)
Sale Consideration	₹569.75 crore
Recovery Rate	~18% of outstanding principal
Loan Characteristics	Unsecured, more than 180 days past due
ARCIL SR Subscription	53.25% (₹303.39 crore)
Bank SR Subscription	46.75% (₹266.36 crore)

Phoenix ARC Transaction

In a separate transaction, Bandhan Bank sold an unsecured written-off loan portfolio to Phoenix ARC Private Ltd through an auction process. Phoenix emerged as the highest bidder for this portfolio comprising loans from the Emerging Entrepreneurs Business (EEB) and Aspiring Business Group (ABG) segments.

Parameter	Details
Principal Outstanding	₹3,707.11 crore (as of Nov 30, 2025)
Sale Consideration	₹331.97 crore
Recovery Rate	~9% of outstanding principal
Portfolio Type	Written-off loans (group, small business, agri)
Phoenix SR Subscription	37.84% (₹125.60 crore)
Bank SR Subscription	62.16% (₹206.37 crore)

Transaction Structure and Process

Both transactions were executed on a security receipts (SR) basis, with the bank retaining significant stakes in the portfolios. The board had previously approved the sale of identified NPAs and written-off portfolios belonging to the Emerging Entrepreneurs Business (EEB), including group loans and small business and agri loans, and the Aspiring Business Group (ABG) segments.

The Swiss Challenge Method used for the ARCIL transaction allowed for competitive bidding, while Phoenix ARC secured the second portfolio through a standard auction process. These structured approaches ensured competitive pricing for the distressed assets.

Market Performance

Shares of Bandhan Bank ended at ₹145.85, up by ₹0.97, or 0.67%, reflecting positive market sentiment following the announcement of these strategic asset sales. The transactions are expected to help improve the bank's asset quality metrics and strengthen its balance sheet position.