On December 21, the board of directors of Bandhan Bank approved the transfer of Rs 776 crore worth of non-performing loans (bad loans) to an asset reconstruction company (ARC).
Chandra Shekhar Ghosh, the managing director of Bandhan Bank, discussed his vision for the digital payments sector in an exclusive interview with BT TV. He mentioned the possibility of launching the long-awaited credit card by March 2024, stating, "As per customer demand, we have been introducing new products from time to time. We haven't ventured into credit cards yet. Hopefully, we will do it by the end of this financial year," Ghosh told BT TV.
In 2019, the Kolkata-based private bank collaborated with Standard Chartered to introduce a co-branded credit card, extending it to 40 lakh savings bank account holders across 1,000 branches. The co-branded credit cards, named One for the mass market, Plus for the affluent segment, and Xclusive for the premium segment, were offered.
Furthermore, Bandhan Bank initiated the 'INSPIRE' program tailored for senior citizens, addressing various banking needs such as preferential interest rates, priority banking, and doorstep services. The specially designed INSPIRE membership card provides senior citizens access to healthcare benefits, enhanced banking services, and special interest rates on fixed deposits (FD), ensuring a comprehensive offering to support a confident retirement.
Sujoy Roy, the head of branch banking at Bandhan Bank, described the program as offering a "comprehensive bouquet of benefits, meticulously designed for senior citizens."
In a recent development, the board of directors of Bandhan Bank approved the transfer of non-performing loans (bad loans) amounting to Rs 776 crore to an asset reconstruction company (ARC). The bank, through a Swiss challenge bidding process, aims to offload these loans to the asset reconstruction company, as mentioned in a regulatory filing. The housing finance NPA portfolio, with Days Past Due of more than 180 days and an outstanding amount of Rs 775.62 crore as of September 30, 2023, will be transferred, according to the stock exchange filing.
"The bank has received a binding bid of Rs 280.39 crore, equivalent to 36.15% of the outstanding pool, for the mentioned NPA portfolio on an outright cash consideration basis. The bank is proceeding with the bidding process using the Swiss Challenge method, and the decision regarding the sale will be made in accordance with the existing guidelines governing the Swiss Challenge method and the relevant policy of the bank," stated the filing.
According to a recent credit ratings report by Crisil, the bank's gross and net non-performing assets increased to 7.3% and 2.3%, respectively, as of September 30, 2023, compared to 4.9% and 1.2%, respectively, as of March 31, 2023.
During the July-September quarter, the bank's gross non-performing assets (GNPA) rose by 14.8% YoY. The gross NPA for the quarter stood at Rs 7,874 crore, up from Rs 6,854 crore in the same period last year. In the preceding quarter, gross NPA was reported at Rs 6,961 crore. The net NPA ratio also increased by 40% YoY in July-September, with net NPA at Rs 2,366 crore, compared to Rs 1,679 crore in the corresponding period last year.
