Bondan Bank to increase secured loan exposure: MD and CEO Chandra Shekhar

Private lender Bondan Bank will gradually increase its exposure to secured loans by making progress in the housing and MSME sectors, an official said.

Currently, the bank’s exposure to MFI loans, which is unsecured, is 47 per cent, and its growth in the housing segment is 24 per cent, retail 2 per cent and small, medium and medium industrial sectors 27 per cent. Percent.

Chandra Shekhar Ghosh, MD and CEO of Bondhan Bank, told PTI that “lenders will increase their exposure to secured loans and increase the distribution of housing and medium-sized MSME loans. MFIs and short-ticket MSME loans are unsecured in advance”.

He said 25 per cent of its MFI loans would be converted into formal MSME advances because segment interest rates are similar to loans to micro-credit or self-help groups (SHGs).

As there is no difference in interest rates, there will be no “impact on profits” for the bank, he said.

In the last quarter of the previous financial year, the bank had made a net profit of Rs 1,902 crore and no measures were taken for bad loans, he said.

By 2025, the bank will reduce “group loan advances, which are 26 percent of the advance book of a batch of micro borrowers.”

Responding to a question on branch expansion in the current financial year, Ghosh said about 530 banking outlets would be opened across the country, bringing the total number to more than 6,000.

Recently, private lender holding company Bondhan Financial Holdings Ltd reduced its stake in the banking entity to 21 per cent to raise Rs 10,600 crore, of which Rs 4,500 crore has been used to acquire a majority stake in IDFC Mutual Fund.

Currently, the holding company’s shareholding has dropped to 40 percent, which is “consistent” with regulatory rules, Ghosh said.

Earlier, Bondhan Financial Holdings had a 82 per cent stake in the bank at the time of its listing on the stock exchange, which dropped to 61 per cent with the subsequent acquisition of Home Finance.

Ghosh said there was no need for a follow-on public offer as the bank had sufficient capital.

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