Intro: Opens first dedicated branch for HNIs at Park Street in Kolkata; plans to open similar branches in other metros
Bandhan Bank, so far known for serving millions of poor families through its small loans, is now eyeing high networth individuals (HNIs).
The bank has made a move in this direction by opening its first dedicated branch for HNIs at posh Park Street in Kolkata, and based on this experience, it plans to open similar branches for the rich in other metro cities.
"Based on our experiences at our Park Street Branch, we plan to open similar branches in other metros in other cities as well including another one in Kolkata," Ghosh said while inaugurating the branch.
And to expand its reach among the high networth clients, Bandhan recently roped in Rahul Johri, former retail head of DBS Bank as executive president, head of general and micro banking.
"We will be using the relationship manager model for our HNI customers; will launch wealth management services at an appropriate time," Johri told dna.
Bandhan had started out as a micro-finance institution. Reserve Bank of India, as a part of an experiment to promote alternate modes of banking in changing times, had granted a banking licence to Bandhan and IDFC in 2014.
In August 2015, the micro-financier set up by Chandra Sekhar Ghosh got transformed into a full-fledged bank.
In its first year of operation, Bandhan Bank in FY16 has earned a net profit of Rs 275.25 crore on a total income base of Rs 1,731.25 crore, giving an earning per share of Rs 3.40.
Its net non-performing assets stood at Rs 10.23 crore with a net NPA ratio of 0.08%, the bank disclosed in a filing made to the stock exchanges.
The comparable figures for the previous year are not available as the bank started operations in the middle of FY16.
At a time when the banking industry is facing flack due to a rapid rise in the non-performing accounts of corporate borrowers, Bandhan stuck to its comfort zone by lending small amounts to its ever-growing customers for tiny loans.
But eight months into the life of the new bank, Bandhan is now eyeing the rich. Not that the bank desperately needs the monied class to shore up deposits as it is already flush with funds.
Since the setting up of the bank, Bandhan has notched up a deposit base of Rs 13,000 crore from 85 lakh customers, of whom 7 lakh customers are non-microfinance customers who joined after the bank was set up.
"With a loan portfolio of Rs 15,200 crore, we have a credit deposit ratio of well over 100%," Ghosh pointed out.
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