Bandhan Bank says will tap rural markets to stay as most profitable lender

Despite the rise in repayments, the ongoing coronavirus pandemic could slow Bandhan's loan growth to 20% this year

Indian micro-financier Bandhan Bank Ltd. will diversify lending and selectively tap more rural markets to cement its position as the nation’s most profitable lender after loan repayments improved.

“There is a big demand,” founder and Chief Executive Officer Chandra Shekhar Ghosh said in a recent phone interview. “Rural India is untapped and people there are not getting credit service. Lifestyles are going to change and they also have business needs.”

Bandhan Bank, which received $1.4 billion from investors including BlackRock Inc. and Singapore’s GIC Pte in August, aims to maintain a 4% return on assets by diversifying. It