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

Private lender Bandhan Bank said on Thursday it would diversify its asset base by increasing exposure to secured loans to 70% by 2025.

The bank will also diversify its geographical presence, said Chandra Sekhar Ghosh, managing director and CEO of Bandhan Bank.

Ghosh said the bank’s guaranteed loan percentage is currently 39%. Ten percent of its exposure will be in retail channels – autos, including two-wheelers, gold and personal loans.

According to initial disclosures from the bank, the lender’s loans and advances at the end of the second quarter stood at Rs 99,374 crore, reflecting a 22% year-on-year increase.

“The bank will diversify the asset base and exposure to secured loans will increase to 70% by 2025,” he told reporters here.

Bandhan Bank announced on Thursday that it has appointed former Indian cricket captain Sourav Ganguly as its brand ambassador.

Ghosh said: “The bank will focus on housing loans which are seeing good growth in demand. MSMEs will be the other sector the bank will focus on. Currently exposure to the MSME sector is 38%. , much of which is secure.”

Launched seven years ago as a bank, Bandhan has 5,600 branches, 70% of which are in rural and semi-urban areas of the country. Mainly concentrated in the East, the bank plans to strongly diversify its presence towards other areas.

He said Bandhan’s acquisition of Gruh Finance in 2019 helped the bank diversify its portfolio, adding that the focus now is on increasing lending to the housing sector. “Growth in demand for home loans was 26% and continues to grow,” he added.

The bank will also focus on digital services to reduce the cost of operations, and will also use data analytics to drive growth in the future, Ghosh said.

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