Somewhere between the carb inlet and the inlet valve in the head.
Most likely, (in no particular order)
a) the carb boots that the carbs fit into, (carb to intake manifold)
b) the connection between the intake manifold and the head,
c) a vacuum hose connected to the carb (I would start here first)
This generation of Bandit (2nd gen, oil/air cooled) tended to work better with a STOCK air filter. Lots of guys have had problems getting consistent performance using a K&N filter, but OTOH some people don't have problems.
I would buy a stock air filter, and look for vacuum hose problems first, then move on to inspecting the carb/intake manifolds.