Bandhan Bank loan book, deposits decline in June quarter, data shows

Kolkata-based Bandhan Bank on July 15 said its loans and deposits have declined on a quarter-on-quarter (QoQ) basis in a business update to the stock exchanges.

Total loans and advances shrunk by 8 percent in June quarter to Rs 80,128 crore compared with Rs 87,043 crore in the March quarter. Total deposits contracted by one percent on a QoQ basis to Rs 77,336 crore from Rs 77,972 crore, the bank said.

On a year-on-year  (YoY) basis, however, loans and deposits grew by 8 percent and 28 percent, respectively.

Within deposits, CASA (current, savings account deposits) shrunk by 2 percent on a QoQ basis but showed a growth of 48 percent on a YoY basis.

Retail deposits grow

Retail deposits, however, showed strong growth in the quarter, growing by 4 percent on a QoQ basis and 36 percent on a YoY basis. Bulk deposits (larger deposits), however, shrunk by 19 percent sequentially and by one percent on YoY basis.

Ratio of retail to total deposits improved to 83 percent in the June quarter compared with 79 percent in the preceding quarter. A jump in share of retail deposits is seen as healthy sign for a bank. CASA ratio, however, declined to 42.9 percent from 43.4 percent sequentially.

On a YoY basis; however, CASA ratio improved from 37.1 percent in the year-ago period.

Liquidity coverage ratio (LCR), an important financial parameter, as on June 30, 2021 stood at around 138 percent.

Collection efficiency of Bandhan Bank for June 2021 was around 80 percent, the update showed. Within that, collection efficiency of emerging entrepreneurs business, which included microloans, stood at 72 percent and non-micro loans around 96 percent, the bank said.

According to industry officials, Bandhan Bank’s collections suffered due to the ongoing COVID situation and also partly on account of the lower collections reported in Assam where some provisions of a recent microfinance Bill, together with a call for loan waiver by local politicians have impacted the credit discipline.