In a move to increase the footprints pan India, Bandhan Bank also plans to expand its base in northern regions and its adjacent areas. The bank’s prime target is to cover the capital city (Delhi) initially, and later it will spread its wings in national capital regions (NCRs), according to a top official of bank.
“As we see a huge potential in northern regions including Delhi, we plan to open as many branches as we can in these regions and its adjacent areas. Our prime target is Delhi initially, and later we will go for other northern regions gradually. Some of our Delhi branches are giving good business at present and we will get more if we aggressively expand our presence here,” Bandhan Bank MD & CEO Chandra Shekhar Ghosh told The Pioneer on Thursday without giving number of new branches to be opened in the capital in next 1-2 years.
“We want to provide more services to those who still do not have bank accounts as well as those who are not actively using banking services despite having an account,” he added.
The 18-months-old youngest private bank has over 800 branches and 280 ATMs across 33 states and Union Territories. The bank also has 2,427 microcredit offices with nearly about 1 crore customers in all and about 2 crore accounts across all products.
When asked about credit off-take scenario of the bank, Ghosh said, “We want to focus on services in personalised and simplified banking where credit growth will be a major challenge for us. Now, we are focussing only on lending to micro, small and medium enterprises (MSMEs), but not in corporate lending.”
Explaining why he preferred MSMEs lending the most, Ghosh said, “We have the expertise in retail and would like to continue there. I think most of banks in the country have tapped the top over 10 per cent of large corporate customers and we have seen the non-performing assets or NPA situation, so why should I go there right now. We want to target the space which is above microcredit but just below the large corporates; focus on smaller corporate as well as on affordable housing, which also has a social impact.”
The bank is also planning to enter the capital market by 2018 as per Sebi guidelines. “As per the market regulator’s guidelines, the bank must have completed 3 years to go for initial public offering (IPO). We are just 18-months-old and we have to wait for another one and half year to fulfill the eligibility criteria of the regulator for that move.”
With a major achievement, the bank has garnered total deposits worth Rs 20,000 crore and generated 30 per cent current and savings account (CASA) base which is a part of financial inclusion in the banking industry.