Bandhan Bank in the first quarter of FY21 said collection efficiency for microloans, which as of April was reported to be zero, improved to 70% by the first week of July. The lender further said 68% of its borrower profile was now classified as paying, whilst however not specifying if the payments were full or part payments. Notably, five percent of the borrower profile had also availed for an additional loan. On an overall basis, Bandhan Bank said its collection in value increased to 76%, from 29% reported earlier.
The lender also reported a 6.2% increase in deposits from Rs 57100 crore in March to Rs 60600 crore in June. 61% of the Rs 743.1 crore disbursements in the first quarter of FY21 consisted of the bank’s micro loan book. The number of micro loan borrowers for Bandhan Bank also increased marginally from 11.14 million to 11.20 million customers, whilst the bank for all its profiles added 210,000 customers in the quarter.
Retail advances dominated the bank’s non-micro loan book, comprising 26% of all advances at Rs 19561 crore. On a yearly basis, the retail book grew by almost 4% from Rs 18822 crore in June 2019.
Profit after tax in the first quarter declined by 31.59% on a yearly basis, to Rs 550 crore. The bank however attributed the lower PAT on its higher provision of Rs 750 crore amidst the COVID-19, which increased by Rs 60 crore from the provision it had made earlier.
