Microfinance major Bandhan Bank is targeting to grow its loans and deposit book by 2-3% faster than industry average, according to Chief Executive Officer Partha Pratim Sengupta.
The bank's Q4FY26 advances grew 13% year-on-year to Rs 1.54 lakh crore, while deposits rose 10% YoY at Rs 1.66 lakh crore. Secured loans formed 56% of the bank's loan book and low-cost current account and savings account formed 29% of overall deposits.
The bank is targeting to grow its secured loans to 58% of loan book and CASA ratio to 31%, Sengupta told NDTV Profit in an interaction.
Bandhan Bank's core income or net interest income, however, showed tepid growth of 1% YoY to Rs 2,800 crore in Q4. This was largely on account of advances getting re-priced faster than deposits after the cumulative 125-basis-point cut in repo rate by the Reserve Bank of India last year, the managing director said.
The bank will focus on improving its core and other income in FY27, he added.
The bank's net interest margin stood at 6.2% in Q4, lower 46 bps YoY but up 30 bps sequentially. Margins are likely to improve in FY27 as the lender expects further reduction in the cost of funds, Sengupta said.
With revamped internal processes and underwriting standards for micro loans, the bank will continue growing its emerging enterprises book and is targeting credit cost of 1.6–1.7% in FY27
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