Bank loan

Bandhan Bank loan portfolio, deposits plunge in June quarter

Bandhan Bank Limited, headquartered in Kolkata, said Thursday that its loans and deposits declined quarter-over-quarter (QoQ) in an update from the Securities and Exchange Board (SEBI).

Bandhan Bank, in accordance with SEBI regulations, revealed that its total loans and advances decreased by 8% to Rs 80,128 crore in the June quarter, from Rs 87,043 crore in the previous quarter.

The bank’s total deposits contracted 1% to Rs 77,336 crore on a QoQ basis from Rs 77,972 crore. However, on a year-over-year basis, loans grew 8% and deposits rose 28%, Bandhan Bank said in a statement.

Within bank deposits, current savings account (CASA) deposits fell 2 percent on a QoQ basis. Bandhan Bank’s CASA deposits grew 48% year-on-year.

Bandhan Bank’s retail deposits grew 4% quarter-on-quarter and 36% year-on-year. However, bulk deposits contracted 19 percent sequentially and 1 percent year-on-year.

The ratio of retail deposits to total bank deposits improved to 83% in the June quarter from 79% in the March quarter. The CASA ratio, however, declined to 42.9% from 43.4%, sequentially.

On an annual basis, the CASA ratio improved from 37.1% a year ago. The bank’s short-term liquidity ratio (LCR) stood at around 138% as of June 30, 2021.

The bank added that its collection efficiency for June 2021 was around 80%. Its business collection efficiency for emerging entrepreneurs stands at 72 percent, while that of non-micro-economic loans is around 96 percent.

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