Bandhan Bank to gradually pare micro credit exposure: Ghosh

Kolkata, Mar 12 () Bandhan Bank Ltd will graduallylower exposure to microcredit in percentage terms over thenext three to five years, its MD and CEO Chandra Sekhar Ghoshsaid on Thursday.

When the private lender started operations in August2016, microcredit constituted 85 per cent of its total loanportfolio.

"The bank's exposure to microcredit at present is 61per cent. Over the next three to five years, the bank's ratioof micro and non-microcredit will be 50:50," Ghosh told .

Housing loans make up for 30 per cent of the creditportfolio and MSME 9 per cent, he said.

As of December 2019, the bank's total exposure stoodat Rs 65,456 crore, with a deposit base of Rs 55,000 crore andCASA level at 34 per cent, Ghosh said.

"We are expecting a secular growth in terms of creditofftake in the current financial year despite the slowdown inthe economy," he said.

"Though there is a slowdown due to multiple factors,the impact on the credit growth of Bandhan Bank will not bevery much. Due to good rabi crop, spending by low-middleincome consumers will be at a good level," Ghosh said.

He said the bank is working hard towards meetingregulatory compliance due to which restrictions on the openingof new branches have been lifted by the RBI.

"Bandhan Bank is fully committed about meeting RBIcompliance in respect of bringing down the stake of non-operating holding company to the stipulated level of 40 percent from the present 61 per cent," he said.

Following its merger with Gruh Finance, the promoterholding in the bank has come down from 80 per cent to 61 percent.

The Kolkata-based bank has 1,013 branches and otherforms of banking outlets across the country. DCSOM SOM