Tough to predict loan growth this fiscal till October: Chandra Shekhar Ghosh, CEO, Bandhan Bank

Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank

A 3rd question of Covid-19 would beryllium a situation for microfinance customers and would defer immoderate of their indebtedness demands, according to Chandra Shekhar Ghosh, managing manager and CEO of Bandhan Bank. Ghosh tells Mithun Dasgupta that during the archetypal 4th of this fiscal, the bank’s mean indebtedness size for microfinance customers declined compared to aforesaid play past fiscal. Edited excerpts.

During the archetypal 4th this fiscal, Bandhan Bank’s Emerging Entrepreneurs Business (EEB, erstwhile microbanking segment) portfolio grew 12% year-on-year. Going forward, what is the indebtedness maturation script successful this segment?
During the archetypal Covid-19 question successful the past fiscal year, [there was concern growth] successful the 4th fourth … astir 20% year-on-year. In this fiscal year, though the 2nd question was much terrible than the first, we person [seen] this benignant of maturation during the archetypal quarter. If [there is nary 3rd wave] successful the existent quarter, indebtedness maturation volition not beryllium precise antithetic from that of past year. If the 3rd question comes during this period, it would beryllium a situation for customers and it would defer immoderate of the indebtedness demands. Because … concern owners tin sorb 2 challenges, but would beryllium frightened if they proceed to look more. I consciousness that until Durga Puja [in October], it would beryllium pugnacious to remark connected indebtedness maturation successful this fiscal year. But we are precise affirmative connected the ground of the existent situation.

Are you providing caller loans to caller microfinance customers? And, what astir the mean indebtedness summons size?
As a slope we cannot accidental nary to [a caller customer]. But during the pandemic, caller lending to caller customers is not happening arsenic overmuch arsenic successful mean times. Now, we person stricter lending criteria for caller customers. During the archetypal quarter, mean indebtedness size came down compared to aforesaid play past fiscal.

In the EEB segment, postulation ratio for Q1FY22 stood astatine 86%, excluding NPA. What is the concern now?
If you spot our full postulation magnitude and demands for EEB portfolio, existent postulation ratio stood astatine 98%. That means customers who person arrears person besides started repaying the amount. It is simply a bully motion for the bank. Collection ratio volition amended time by time with the assistance of customers. We anticipation it volition normalise soon.

In the archetypal 4th this fiscal, gross slippages stood astatine Rs 1,661 crore, retired of which Rs 1,036 crore were from the EEB portfolio. As the slope saw gross slippages travel down quarter-on-quarter, bash you expect them to trim further successful the 2nd quarter?
We cannot foretell slippages for Q2, fixed the existent situation. If immoderate slippages happen, it would not beryllium a origin for interest for our slope erstwhile I spot the postulation ratio increasing. In the archetypal quarter, we saw astir 74% and 84% of our NPA customers and restructured customers, respectively, were paying.

At the extremity of Q1FY22, the bank’s postulation ratio successful Assam stood astatine 67%. Has it improved since then?
Assam is precise antithetic today. When the full state is open, chiefly Assam and Kerala are successful implicit lockdown. Assam is experiencing a terrible 2nd Covid-19 question and galore districts are wholly closed. We person nary indebtedness vulnerability successful Kerala.

What is the update connected the peculiar one-time alleviation announced by the Assam authorities to microfinance borrowers?
The authorities authorities person precise intelligibly announced that it is not a indebtedness waiver and emphasised the value of maintaining bully recognition discipline. That is simply a precise beardown and affirmative connection to customers. The government, however, has not mentioned the timeline for implementing the scheme. We are waiting for that. I anticipation that the authorities is moving connected it.