Alright, necroing in...
My device is Yu Yureka CM12.1. But what I've noticed is that the Anti-banding option doesn't change anything when I take the picture of, say my led monitor. But changing the ISO setting does. If we set ISO manually to a higher value like 800, bands will make the image ugly. Even lesser ISO values have banding, but to a small degree. Setting an Auto ISO mode solves the issue. I don't know the technical reasons behind it.
Here's a photo of my led monitor with ISO set to 800:
And here's the same frame in Auto ISO: