Bandhan Bank plans to increase secured loan exposure to 70% by 2025

Bandhan Bank will diversify its asset base by increasing its exposure to secured loans to 70% by 2025.

Diversification of the asset portfolio was part of future plans, said Chandra Shekhar Ghosh, Managing Director and Managing Director of Bandhan Bank.

“By 2025, 70% of assets will be secured and 30% unsecured. We are strategically planning to achieve this target,” Ghosh said at an event to announce the appointment of the former India cricket captain Sourav Ganguly, brand ambassador of the bank.

Currently, 39% of the asset portfolio is secured.

“Bandhan was born as a microcredit organization, but we are a universal bank,” Ghosh said. The acquisition of housing finance company Gruh helped the bank diversify its portfolio and about 26% of advances came from housing loans, he said.

Laying out the roadmap for growth, he said the bank would build the secure wallet. In this direction, besides housing finance, MSMEs would be a priority area. “So far, MSMEs account for 38% of total advances, a large part of which is secured. We grow on that,” Ghosh said.

In addition to the asset portfolio, the bank is interested in geographic diversification. “About 47% of our bank outlets are in the East,” he said. The focus would be on spreading geographic presence.

The bank plans to increase its number of branches to 8,000 in 2025 from about 5,640 currently.