Bandhan Bank's Q2 results show positive impact of diversification

Net interest margin has started to come off from the 10 per cent plus mark as proportion of lower-yield mortgages rise

One of the salient advantages of the recently concluded merger with Gruh Finance was that it would allow Bandhan Bank an opportunity to diversify its book, which prior to the merger was largely restricted by micro finance or MFI loans. Bandhan Bank, which was taking baby steps to enter into non-MFI loans, saw proportion of these loans jump three-fold to 39 per cent in September 2019 quarter (Q2) from 13 per cent a year-ago. With the bank’s book now beginning to take the shape of a universal bank or one that offers a multitude of loan products, its financials in