Bandhan Bank has made conservative provisions on the proforma gross non-performing assets, said Chandra Shekhar Ghosh, MD and CEO of the bank on Friday.
“We are not booking a loss on 7 percent of our portfolio, we are very conservatively making on that. 81 percent of the customer have given full payment in micro-credit level and 31 percent of the customers have given partial payment to the banks. These 13 percent customers who have given partial payments, we have conservatively taken as a risk of the bank so that it is showing 7.1 percent. It is not the total loss of the bank,” Ghosh told CNBC-TV18.
On the Assam microfinance bill, he said, “As per my knowledge and whatever draft we have seen bank is not covered under that. On the ground level, many times people are educated wrongly on that and it is not the first time. We have the best quality and dedicated staff at the ground level who are trying to educate the customers. This is a very short-term phenomenon, in the long term it has no impact on the bank.
On credit cost, Ghosh said, “We expect normal credit cost on our portfolio and advance book in next financial year.”Watch the video for more