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The Curious Case Of Bandhan Bank's 'Creative' Growth Tactics
Practices followed by Bandhan Bank could constitute ever-greening of loans and violations of the spirit of RBI norms.
10 Apr 2023, 07:02 AM IST
On the books of Bandhan Bank Ltd., borrowers may appear hungry for credit over and above their actual appetite. They may also appear better at paying off their loans than they are. So what exactly drives this mirage? The answer lies in a long-standing practice the bank has followed in its microfinance segment. The peculiar—and somewhat brazen—growth hack helps the bank artificially boost its deposit base and also delay recognition of...
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