'Bandhan will launch credit cards, push home loans'

Bandhan Bank is looking to expand its affordable home loan portfolio, aiming to carve out a niche in a segment with a limited presence of lenders.

- Shayan Ghosh

The Kolkata-based private sector bank wants to increase the share of housing loans to 30% of the total loan book by fiscal year 2024-25 (FY25) from 25% now, chief executive Chandra Shekhar Ghosh said in an interview. It is also looking to go solo in credit cards after launching a co-branded card with Standard Chartered Bank four years ago. Edited excerpts:

How has been your bank’s collection efficiency?

A majority of borrowers who were stressed during the covid-19 pandemic have returned to regular repayment discipline. Attendance in group meetings has increased to 70-80%, and that has helped us increase our collection efficiency. People are now growing their businesses, and that is one of the reasons why they are able to pay on time. For credit disbursed in the last two years—FY22 and FY23—our collection efficiency is over 97%. However, if you see only FY23, our collection efficiency is at 99%, showing an improvement in repayment behaviour.

Where do you see credit growth in FY24?