Bandhan Bank Shares Rise 1.8% as Secured Loan Portfolio Jumps 27%

Bandhan Bank remains confident of achieving a credit growth CAGR of 15–17% over the next three years, even as industry-wide loan expansion has slowed sharply. CFO Rajeev Mantri told CNBC-TV18 that the bank’s diversified approach and focus on secured lending are helping it outperform peers.

Growth Drivers

The secured portfolio has become the backbone of Bandhan Bank’s expansion. Secured assets grew 27% year-on-year, driven by housing finance, retail, and commercial banking. In contrast, the microfinance book contracted 15%—a decline that was smaller than the 17% industry-wide fall.

Mantri added that the Emerging Entrepreneurs Business (EEB) segment is expected to show sequential recovery from Q3 FY26, supported by rural demand after the monsoon. For FY26, Bandhan Bank expects around 5% growth in this segment.

Shift Toward Secured Lending

The bank has accelerated its move toward secured lending, with secured assets now forming 52% of the loan book as of June 2025, compared to 42% in March 2024. By FY27, this share is expected to rise another 5–6 percentage points. This structural shift strengthens the bank’s risk-reward profile and provides stability in uncertain macroeconomic conditions.

Profitability Outlook

On profitability, Mantri acknowledged that net interest margins (NIMs) may soften in the near term. Repo rate-linked advances, which account for 45% of the loan book, are directly impacted by rate cuts, while deposits take longer to reprice.

However, Bandhan Bank has already reduced its savings deposit costs by 19 basis points in Q1. Lower funding costs and easing slippages in the second half of FY26 are expected to cushion the impact on margins.

Bandhan Bank Share Price Performance

On September 3, 2025, Bandhan Bank share price opened at ₹162.05, from the previous close of ₹162.04. It reached a low of ₹162.05 and closed up by 1.80% at ₹164.95.

Read More: Bandhan Mutual Fund Filled Draft for Healthcare fund

Conclusion

Bandhan Bank is navigating a challenging credit environment with a clear focus on secured lending and sustainable growth. While near-term margins may be under pressure, its strengthening loan mix, disciplined cost management, and focus on rural demand recovery position it well to deliver on its 15–17% growth target.

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