Even as deposit growth in the banking sector is at an all-time low, Bandhan Bank has been able to garner nearly Rs 12,090 crore deposits for the financial year 2015-16. The bank clocked nearly 25-30% growth in deposit every month last fiscal, as it has been offering interest rates higher by at least 50 basis points on an average.
Bandhan has been offering a maximum interest rate of 8.5%, with an additional 0.5% for senior citizens, for retail deposits. At present, Bandhan's base rate is also high at 12%.
The bank will review its interest rates soon, said , C S Ghosh, chairman and managing director, Bandhan Bank.
Notably, according to recent data from Reserve Bank of India, aggregate deposit growth for banks saw a growth of around 9.9% year-on-year basis, till March 18, 2016, which is one of the lowest deposit growth rates in several decades.
On the credit side, Bandhan saw nearly 56% growth in credit outstanding the last financial year at around Rs 15600 crore. However, a majority of loans has been as been in the form of microfinance lending. The share of retail loan in the overall credit by the bank has been close to Rs 150 crore, according to Ghosh.
The bank is offering a small bouquet of retail loans for affordable housing, medium, small and micro enterprise and transport.
"This financial year we are looking at nearly 30% growth in the overall business of the bank," said Ghosh. At present, Bandhan has a network of close to 636 branches and 228 ATMs.
Recently, investors at Bandhan, which includes Singapore's sovereign wealth fund GIC and International Finance Corporation increased their stakes in Bandhan with fresh capital infusion of around Rs 500 crore, taking the total net worth of the bank to close to Rs 3,200 crore, said Ghosh.