Bandhan Bank ’s management remains confident that its net interest margin (NIM) has bottomed out in the July-September quarter of FY26 (Q2FY26) and is set to improve in the coming quarters.

Partha Pratim Sengupta, Managing Director and Chief Executive Officer, acknowledged that the recent quarter was challenging and the sharper-than-expected margin compression to 5.8% stemmed from several factors, which he also outlined while expressing optimism about recovery.

Sengupta cited four main reasons for the margin pressure. First, the bank passed on repo rate hikes to borrowers at the start of the quarter. Second, as part of a long-term strategic move, Bandhan recalibrated its Marginal Cost of Funds-based Lending Rate (MCLR), reducing it by 200 basis points to align more closely with peers. T

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