Private sector lender Bandhan Bank has demonstrated steady growth in its core operations for the quarter ending December 31, 2025. The bank's latest provisional business update, filed with the stock exchanges, reveals a consistent expansion in its loan book and deposit base, even as the mix of its deposits undergoes a significant shift.
Steady Growth in Loans and Deposits
The bank's total loans and advances reached Rs 1,45,227 crore in the third quarter of the current fiscal year (FY26). This marks a 10% increase compared to the Rs 1,32,019 crore reported in the same period last year (Q3 FY25).
On the deposits front, the bank witnessed an 11.1% year-on-year rise. Total deposits stood at Rs 1,56,723 crore as of December 31, 2025, up from Rs 1,41,002 crore a year earlier. However, on a sequential basis, deposits saw a marginal dip of 0.9% from the Rs 1,58,075 crore recorded in the September 2025 quarter.
Retail Strength and Shifting Deposit Composition
A key highlight of the update is the robust performance of the bank's retail franchise. Retail deposits, which include Current Account and Savings Account (CASA) balances, grew by a strong 17.2% year-on-year to Rs 1,13,420 crore. Within this, retail term deposits saw an impressive surge of 35.8%, climbing to Rs 70,690 crore from Rs 52,063 crore in December 2024.
Consequently, the share of retail deposits in the total deposit pie improved substantially to 72.37% from 68.65% a year ago. This indicates a strategic focus on building a stable, granular deposit base.
However, the bank's low-cost CASA deposits witnessed a decline. CASA deposits fell by 4.5% to Rs 42,730 crore from Rs 44,735 crore in the year-ago quarter. This contraction led to a lower CASA ratio of 27.26%, compared to 31.73% in December 2024 and 27.97% in September 2025.
Furthermore, bulk deposits decreased by 2.0% year-on-year to Rs 43,303 crore. The ratio of bulk deposits to total term deposits showed a significant reduction, dropping to 37.99% from 45.92% last year, reflecting a healthier deposit profile.
Operational Efficiency and Liquidity
On the operational front, Bandhan Bank reported an improvement in collection efficiency. The pan-bank collection efficiency (excluding non-performing assets) for December 2025 stood at 98.1%, a slight improvement from 97.8% in September 2025.
Specifically, the collection efficiency in the key Emerging Entrepreneurs Business (EEB) segment rose to 98.0% in December from 97.5% in September. Non-EEB segments maintained a steady efficiency of 98.3%.
The bank's liquidity position remains robust, with the Liquidity Coverage Ratio (LCR) at a comfortable approximately 149.14% as of December 31, 2025, well above regulatory requirements.
The quarterly update underscores Bandhan Bank's continued growth trajectory, driven by its retail strength, even as it manages the evolving dynamics of its deposit portfolio to ensure sustainable funding.
