With surging deposit base and ever-rising profits, Bandhan Bank is now facing the problem of plenty for its capital deployment. At a time when most of the top-rung scheduled commercial banks are either waiting for the government to infuse capital or are burdened with dud loans, Bandhan is witnessing a surge in deposits which grew 37% on year to Rs 30,703 crore as on end of first quarter.
Add to it, its bottomline for the first quarter grew by 47.51% to Rs 482 crore.
The bank’s capital base has surged so much that its capital adequacy ratio has now touched 32.61%, compared to State Bank of India’s 12.60%.
“It takes time to find opportunities in deploying capital. As a universal bank, we would continue to focus on the retail segment, particularly in rural areas. The Board has been deliberating on our strategic plans and we have decided to continue to focus on micro-lending which will help us to contain our risks,” said promoter and managing director Chandra Shekhar Ghosh.
Attractive deposit rates, coupled with the expansion of its branch network, numbering 937 as of June-end and expected to touch the 1,000-mark by year-end, have led to a steep hike in deposit base, he said.
Beyond microfinance, Bandhan Bank is finding it difficult to lend funds.
Its housing finance activity is yet to pick up in a major way and Ghosh is still wary of coming out with unsecured lending products such as credit cards or personal finance in urban areas. “There are no immediate plans to drastically expand to areas like personal loans or credit cards,” he said.