Bandhan Bank plans to hike exposure of secured loans to 70% by 2025

Bandhan Bank will diversify its asset base by raising its exposure to secured loans to 70 per cent by 2025.

Diversification of the asset book was part of future plans, said Chandra Shekhar Ghosh, managing director and chief executive officer of Bandhan Bank.

“By 2025, secured will be 70 per cent of the asset and 30 per cent, unsecured. We are planning strategically to reach that,” Ghosh said at an event to announce the appointment of former Indian cricket captain Sourav Ganguly the bank’s brand ambassador

Currently, 39 per cent of the asset book is secured.

“Bandhan was born as a micro credit organisation, but we are a universal bank,” said Ghosh. The acquisition of housing finance company, Gruh, had helped the bank diversify its portfolio and about 26 per cent of advances had come from housing loans, he said.

Laying the road map for growth, he said the bank would build up the secured portfolio. In that direction, apart from housing finance, MSME would be a focus area. “Till now, MSME is 38 per cent of total advances, a large part is secured. We are growing on this,” Ghosh said.

Apart from the asset book, the bank is looking at geographical diversification. “About 47 per cent of our banking outlets are in the east,” he said. The focus going forth would be spreading the geographical presence.

The bank plans to increase its number of branches to 8,000 in 2025 from about 5,640 now.