Bandhan Bank sees slower credit growth compared to its deposit mobilisation

Kolkata: Bandhan Bank's credit growth was slower than its deposit mobilisation growth which is against the industry trend.

The bank said its advances rose 14% year-on-year to a tad over Rs 1 lakh crore at the end of the December quarter while its deposits jumped 21% year-on-year to Rs 1.2 lakh crore.

The loans and advances as on December 31, 2022 are before considering write-offs, the bank said in a regulatory filing to stock exchanges.

If the bank writes-off old bad loans then the size of the outstanding loan portfolio will reduce to that extent.

"The figure shall be updated post write-offs, if any, along with Q3 FY2023 financials results," the bank said.

Bandhan's credit growth at 14% is possibly lower than the industry average. According to data shared by Reserve Bank of India, bank loans grew 17.4% year-on-year as on December 16, last year.

The bank's above-average deposit growth is largely due to a 139% jump in bulk deposit mobilisation to Rs 31233 crore from Rs 13060 crore a year back. Bulk deposits are costlier than retail deposits.

The share of the low-cost CASA (current and savings bank accounts) deposit for Bandhan has slipped to around 36.4% from 45.6% a year back.