Bandhan Bank Aims for 15% Credit Growth and 1.5% ROA by FY27 Amid Improved Asset Quality
Bandhan Bank targets 15% credit growth and ROA of 1.5% in FY27 as asset quality improves
The Economic Times
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Bandhan Bank, led by Managing Director Partha Pratim Sengupta, targets a 15% credit growth and a 1.5% return on assets (ROA) by FY27 as it improves its balance sheet. Key factors include reduced credit costs and a stabilizing net interest margin, although global uncertainties remain a concern.
- 01Bandhan Bank aims for 15% credit growth and 1.5% ROA by FY27.
- 02Net Interest Margins improved to 6.2% in Q4, supported by lower funding costs.
- 03Credit costs are projected to decrease from 2% to 1.6-1.7%.
- 04CASA ratio improved to 29%, with a target of 31%.
- 05Geopolitical risks from the West Asia conflict are being monitored but have not yet impacted operations.
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Bandhan Bank is experiencing a notable turnaround, with Managing Director Partha Pratim Sengupta announcing targets of 15% credit growth and a 1.5% return on assets (ROA) by FY27. The bank's net interest margins (NIMs) have improved to 6.2% in the fourth quarter, driven by the maturity of higher-rate deposits and reduced slippages. Credit costs are on a downward trajectory, expected to fall from 2% to between 1.6% and 1.7%. The bank's CASA (current account savings account) ratio has also improved to 29%, with a goal of reaching 31%. Despite global uncertainties, particularly regarding the West Asia conflict, the bank has not yet seen any material impact on its operations. Sengupta remains cautiously optimistic about the future, emphasizing the importance of maintaining asset quality improvements.
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If Bandhan Bank achieves its targets, it could lead to more competitive loan rates and improved financial stability for customers.
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