Amid Covid, diversification remains even more elusive for Bandhan Bank

Even after seven years of operations, Bandhan's concentration on micro loans remains high

While most commercial banks reported impressive numbers for the second quarter of the current financial year, Bandhan Bank’s Rs 3,009 crore loss came as a surprise to the investors.

The record loss was due to a jump in provisioning to Rs 5,578 crore during the quarter, compared to Rs 380 crore during the same quarter of the previous year. Of the Rs 5,580 crore, provisioning for the existing non-performing assets was around Rs 1,500 crore, additional standard asset provisioning of Rs 2,100 crore and Rs 1,030 for restructured assets.

The bank was confident when the pandemic hit the country in