Bandhan Bank seeks to increase the share of secured loans to nearly 70% of its total advances by 2025, supported by growth in housing loans and advances to MSMEs. Secured loans currently make up about 39% of its advances, while the remaining 61% comes from unsecured loans, mostly microloans.
According to Chandra Sekhar Ghosh, MD and CEO of Bandhan Bank, there has been a steady growth in demand for housing loans and advances to MSMEs, which would help drive growth in the secured loan portfolio.
The bank expects growth in other retail loans, such as gold loans, auto loans and personal loans.
Currently, a significant portion of our business comes from microcredit, which is unsecured by nature. But our housing loan portfolio is growing and there is huge demand, so we want to tap into that demand,” Ghosh told media on the sidelines of an event to announce Sourav Ganguly as the bank’s brand ambassador here on Thursday. .
The bank’s housing loan portfolio grew nearly 20% in the first quarter of the current fiscal year on an annual basis and it expects the growth momentum to continue. Housing loans account for nearly 26 percent of the bank’s total advances.
MSME would be another growth engine for the bank, and they would seek to share the secure wallet. MSMEs currently account for around 38% of total advances. It expects other retail loans, such as gold, auto and retail, to account for nearly 10% of its total advances by 2025.
The bank is also working on introducing its own credit card and hopes to roll it out by the second quarter of next fiscal year. It has set up a data analysis team to analyze demand and credit absorption capacity among its existing customers.
“We have a huge customer database and we can look at the needs of multiple customers by analyzing the data. So we set up a data analysis team to analyze customer demand and capacity for cross-selling products,” he said.
Bandhan Bank, which has largely focused on the eastern and northeastern regions, is seeking to strengthen its presence in the northern, western and southern markets.
Nearly 47% of its 5,640 branches are in the eastern and northeastern regions. In the future, he would like to add more branches in other regions. It plans to grow its total branch network to nearly 8,000 by 2025.
On stringing Sourav Ganguly as brand ambassador, Ghosh said, “Sourav has been one of the most successful captains of the Indian cricket team due to his foresight, dedication and his commitment to the game. There is a lot of congruence in the values that Sourav and Bandhan Bank embody. He is also a global icon and commands respect from all. We are confident that this partnership will help us attract more attention, which will lead to greater brand awareness and thus propel us further in our growth story.
Ganguly, who took over as head of BCCI in 2019, is expected to end his term soon. In a fireside chat, Ganguly said, “You can’t play cricket forever, you can’t be an administrator forever. Every paperwork has a duration and will end. I will continue to do other things now.