In the five years since Bandhan turned into a fullfledged bank in August 2015, Chandra Shekhar Ghosh, who founded the microfinance organisation in 2001, has kept up its growth momentum. Bandhan Bank, which has been selected as the Best Small Bank, is a story of business growth.
When Ghosh began in 2001, the microfinance institution (MFI) would dish out small loans of ₹1,000-3,000 to economically weaker sections in Kolkata’s suburban Konnagar town and the nearby Bagnan area. In less than a decade, by 2010, Bandhan had emerged as the largest MFI in the country. As a bank, too, the pace continued.
In the 2019 December quarter, it added 0.73 million customers, taking its total customer base to 19 million (with micro banking share at 14.56 million). In the same quarter, the bank’s loan portfolio (on-book and offbook) grew 83.9 per cent year-on-year (y-o-y) with composition of advances at 61 per cent from microfinance and 29 per cent from non-microfinance. The share of microfinance was higher at 87 per cent in December 2018.
The bank’s deposits during the quarter also saw healthy growth – 58.5 per cent y-o-y. At the same time, its net non-performing assets (NPA) stood at 0.81 per cent (after an additional provisioning of ₹200 crore). The share of retail deposits in total deposits was a high 76.2 per cent. But what stands out is that the bank has grown its business to ₹1.2 lakh crore in less than five years.
For the quarter, its CASA (current and savings account) ratio, the low-cost deposit it is able to raise as a bank, grew 31.36 per cent y-o-y; as a percentage of total deposits, it stood at 34.31 per cent. Though it is lower than some of the biggest banks, it is arguably a decent number for a new bank.
Diese Geschichte stammt aus der March 22, 2020-Ausgabe von Business Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der March 22, 2020-Ausgabe von Business Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS