Lockdown: Bandhan Bank sees no problem in loan repayments

Kolkata, Apr 15 () Private lender Bandhan Bank doesnot apprehend any repayment issues owing to the nationwidelockdown to contain the spread of COVID-19, a top bankofficial said.

Recovery, however, has been halted at present due tothe curbs.

MD and CEO of Bandhan Bank Chandrasekhar Ghosh saidrepayments should not be a cause for concern as borrowers'businesses are continuing.

"Recovery of micro loans from borrowers have stoppedfrom March 23," Ghosh told .Advertisement

He said since bank personnel cannot physically go tocollect the loan repayment amount, the outstanding will remainat the previous level.

Ghosh said interest will be recovered at the time ofrepayment, irrespective of whether the customer opted for thethree-month RBI moratorium.

"We are explaining to our customers that the costsinvolved in opting for the moratorium are high since theinterest will be compounded at the time of repayment," anotherbank official said.
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In case of micro-finance, repayments are made on aweekly basis (equated weekly instalments), and not as EMIs.

The official said most of the bank's customers areapprised of the costs of opting for the moratorium and areagreeable to repay as per schedule.Earlier during the start of the bank in August 2015,exposure to the micro-banking sector was almost 80 per cent oftotal advances.Advertisement

Ghosh had earlier said the lender's aim is to lowerthe micro-banking exposure to 50 per cent. After its mergerwith Gruh Home Finance, the exposure had come down to around61 per cent as on December 31.

As on March 31, Bandhan Bank's total loan book stoodat Rs 71,825 crore, reflecting a 60 per cent year-on-yeargrowth.

Deposits from the micro-banking sector continues to bestrong and stable, despite the lockdown, Ghosh added. DCRBT RBT
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