Bandhan to focus on microcredit
New Delhi, Feb. 19: As a strategy to grow its business, Bandhan Bank will continue to disburse a large chunk of loans as microcredit for some more time, founder and CEO Chandra Shekhar Ghosh has said.
Turning from a microcredit institution to a universal bank within one-and-half-years, Ghosh believes serving those at the “bottom of the pyramid” is the right strategy to expand business for a bank.
“We are catering to the bottom of the pyramid. There are people wanting to start new business or expand existing one, or have need for an affordable housing. So, at Bandhan Bank, we are gradually coming to cater to that segment. It is unlike a top-down process,” Mr Ghosh said.
He said that the bank wants to cater to a large number of customers so the main focus is on disbursing microcredit.
“The bank has the capacity as well as skills that have been built at the microcredit level to serve the loan requirement of these people,” Mr Ghosh said.
Bandhan Bank presently disburses 91 per cent of its loans in the microcredit form, Mr Ghosh said, adding the portfolio mix need to be diversified as the bank grows its operations in the future.
With deposit mobilisation worth over `19,800 crore and loan book of about `20,200 crore as on date, the Kolkata headqaurtered bank hopes if the business grows by about 30-40 per cent, it will be able to increase its headcount by 10-15 per cent.
As of now, the bank has 23,300 employees and hopes to add another 200 by March. — PTI