Bandhan Bank has outlined a clear roadmap to strengthen its retail deposit franchise, expand its diversified loan portfolio, improve asset quality and accelerate technology-led transformation, as it pursues sustainable growth under its Bandhan Bank 2.0 strategy.
In his message to shareholders in the bank’s Annual Report 2026, Managing Director and Chief Executive Officer Partha Pratim Sengupta said the lender will continue to follow a calibrated growth strategy anchored in disciplined risk management, capital efficiency and sustainable profitability.
The bank plans to deepen investments in technology, digital banking, data analytics, artificial intelligence (AI) and machine learning (ML) capabilities to build a more agile, customer-centric and future-ready institution.
Strong focus on portfolio diversification
Bandhan Bank continued to diversify its loan portfolio during FY26, increasing the share of secured lending to 56.2% of the overall loan book as on March 31, 2026, compared with 50.5% a year earlier.
The secured portfolio spans retail lending, housing finance, MSME and commercial banking, while the non-EEB loan book grew 24.7% during the financial year.
According to Sengupta, the diversification strategy has strengthened the resilience and quality of the loan portfolio by reducing concentration risks and supporting sustainable long-term growth.
The bank also adopted a prudent approach towards growth and provisioning amid challenging conditions in the microfinance sector, prioritising balance sheet strength over aggressive expansion.
Expanding banking footprint
Bandhan Bank continued to strengthen its distribution network and now serves customers through more than 6,350 banking outlets across India.
A key milestone during FY26 was the transformation of its housing finance business into a full-fledged banking model. The bank converted 192 Housing Finance Centre (HFC) locations into bank branches by the end of March 2026, further expanding its retail presence.
The bank also empowered its business units to actively mobilise deposits, supporting greater funding diversification and long-term growth.
Technology at the core
The lender stepped up investments in underwriting standards, collections infrastructure, portfolio monitoring systems and analytics-driven risk management during the year.
It also continued to strengthen automation and digital infrastructure to improve customer experience, enhance operational efficiency and support scalable business growth.
Long-term opportunity
Sengupta said India’s banking sector continues to offer significant long-term opportunities, driven by favourable demographics, increasing formalisation of the economy, rising consumer aspirations and rapid digital adoption.
He noted that Bandhan Bank’s diversified business model, strong customer relationships and inclusive banking approach position it well to participate in the country’s long-term financial services growth story while continuing its transformation under the Bandhan Bank 2.0 roadmap.