We have not seen any change in rural credit growth: Chandra Shekhar Ghosh, Bandhan Bank

Non-micro credit portfolio is showing a good trend. New customers are asking for business loan and there is a good demand for housing loans as well, Chandra Shekhar Ghosh, Founder & MD, Bandhan Bank, tells ET Now.

Edited excerpts:

What are your expectations from the new RBI governor in terms of regulatory forbearance for small finance banks?

We know this governor has a good background in banking and finance. He worked on that. The Reserve Bank of India is very competent and whatever their guidance for the sector, it will help the economy and Bandhan Bank also would like RBI follow on that.


The last time when we spoke with you, the management was examining options to reduce NOFHC stake to 40%. What is the progress on that?

We are working very closely and when the time comes, we will share it with you. I would like to come back shortly.

The options for reducing the NOFHC stake to 40% were inorganic growth or further equity issuance. Which one would you prefer?

It is taking some time but we take our commitment to compliance with RBI guideline very seriously.

We are seeing distress in rural India in terms of farm prices. You have a high presence in the MFI space. Are you seeing any growth slowdown for the bank and microfinance customers?

As of now we have not seen anything disturbing. Whatever we saw in at ground level especially in the rural areas has been same as last year. For Bandhan Bank, specifically, we have not seen any change in rural credit growth.

How do you see the overall MFI, non MFI growth shape strategy ahead?

MFI growth always follows a pattern. Every year, up to September, growth comes down and from September to March, it goes up. Same thing is happening this year also.

What is the strategy to build liability side of the book given the recent liquidity stress on the system?

We are on track. We feel that the liabilities growth also is in the same line.

Did the bank face any liquidity issues recently? Do you think we need more liquidity measures?

No. We are taking deposits and today we have opened five new branches and by December we are opening another 35 branches which will also add to more deposit and liabilities. As of now, we have not seen any liquidity crunch specifically in Bandhan Bank.

Would you be seeking relaxation in terms of branch opening norms from the RBI now since we have a new governor?

RBI had restricted branch openings. As per our yearly plan, we submitted this plan and accordingly we have got the approval and we are opening the branches now. We do not need further relaxation at this moment. But we are trying to be compliant as early as possible as per RBI guidance.

How are you seeing asset quality trends in both the MFI book and the non MFI book shape up?

I feel micro credit growth is as usual. Non-micro credit portfolio is showing a good trend. The people are now coming to bank. New customers are asking for business loan and we are also seeing good demand for housing loans.

The non-micro credit business and the retail credit demand is coming from new customers. I feel that is very good trend for the country in future also.