• Profitability growth drivers: Improvements in balance sheet quality and margins are supported by lower cost of funds as term deposits renew through Q2, reduced NPA interest reversals, and a 10% quarter-on-quarter increase in other income.
• Secured portfolio mix: The bank's secured lending has reached 56% compared to 44% unsecured, with secured loans growing 25% year-on-year as the bank approaches its FY27 guidance of 58% to 60% secured assets.
• Microfinance asset quality: Bandhan Bank holds an MFI exposure of approximately ₹53,000 crore, where gross slippages, NPA percentages, and SMA 0, 1, and 2 books have declined following demand recovery after November 15.