Bandhan eyes NRI deposits; launches visa debit card & NRI account

The bank also in talks with Ola, Uber for car finance

Bandhan Bank on Tuesday unveiled two new products — Visa international debit card and non-residential accounts — pointing towards the bank’s strategy to look beyond the rural finance for deposit mobilisation.

In the retail financing space, too, Bandhan is looking to diversify beyond microcredit as it is in talks with car aggregator company Ola for financing car loans for drivers attached with company.

“We are in talks with Ola for financing car loans. We can also provide value-added services like providing a list of our creditworthy borrowers for availing car loans for working with Ola. We also plan to talk to Uber for car financing,” said C S Ghosh, chairman and managing director, Bandhan Bank.

So far, 99 per cent of the bank’s lending of Rs 13,500 crore has been to microborrowers. However, on the liability side, it is aggressive in garnering deposits, which so far stands at Rs 7,500 crore. Of this, around 50 per cent of its deposit has been from new customers. Bandhan expects to have a loan portfolio of Rs 14,500 crore and a customer base of 10 million by the end of this financial year.

“On the asset side, we are gradually increasing our lending to small and medium enterprises, housing and loan against property segments. On the liability side, there has been a huge demand from high net worth individuals to send remittances to India. Thus, we felt the need to focus on NRI customers,” said Ghosh.

Currently, the bank is offering a small bouquet of retail laons, which includes loans for affordable housing, medium, small and micro enterprise and transport.

At present, the bank has a customer base of 8.2 million, of which around 800,000 were added in the last five and half months. Against the market rate of 7-7.50 per cent, Bandhan is offering the maximum interest rate of 8.5 per cent for one to three years tern deposits, with an additional 0.5 per cent for senior citizens.

The bank expects about 30-40 per cent growth in business in the next financial year.

With a capital base of around Rs 3000 crore, Bandhan's capital adequacy ratio currently stand s at 42 per cent.

Bandhan Bank's International Debit Card is a chip-based card offered in partnership with Visa International. So far, it was offering RuPay card to its borrowers. The customers will be offered two variants - Visa Classic and Visa Platinum. Visa Classic Debit card holders will enjoy daily cash withdrawal limit of Rs. 40,000 while Visa Platinum Debit Cardholders will have Rs. 1, 00,000 daily cash withdrawal. Currently, it operates across 27 Indian states through a network of 612 branches and 203 ATMs.

The Kolkata-headquartered Bank has two divisions -- micro banking and general banking, offering complete retail financial solutions, including a variety of savings and loan products.

POINTERS

1. In five and hald months Bandhan has garnered close to Rs 7500 cr as deposits

2. Bandhan's credit portfolio currently is close to Rs 13500 cr

3. Bandhan's capital adquecy rate at present is about 42 per cent

4. Bandhn's maximum term deposit rate is 8.5 per cent

5. Bandhan plans to have 632 branches by March 2016

6. At present Bandhan as 612 branches

7. Bandhan expects to have a customer base of 10 million by March 2016